Cettire share price jumps 11% on dazzling FY23 growth

Consumer spending weakness hasn't been able to stop Cettire's rapid growth.

| More on:
A woman is excited as she reads the latest rumour on her phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Cettire Ltd (ASX: CTT) share price is leaping higher on Thursday.

In morning trade, the online luxury retailer's shares are up 11% to $3.10 following the release of its FY 2023 results.

Cettire share price leaps on strong growth

  • Gross revenue up 87% to $539.2 million
  • Sales revenue up 98% to $416.2 million
  • Delivered margin up 156% to $95.6 million
  • Adjusted EBITDA of $29.3 million
  • Net profit after tax of $15.97 million
  • Cash of $46.3 million, with zero debt

What happened during FY 2023?

For the 12 months ended 30 June, Cettire continued its strong growth and reported an 87% jump in gross revenue to $539.2 million.

This reflects a 63% increase in active customers to 423,000, sustained strength in repeat customer purchasing behaviour, higher average order value, and healthy demand for luxury goods. In respect to repeat customers, 58% of Cettire's gross revenue is now from repeat customers. This is up from 50% a year ago.

Things were even better for Cettire's earnings, with both its EBITDA and net profit metrics swinging from losses in FY 2022 to profit in FY 2023.

A key driver of this was its delivered margin performance. It increased by 156% over the prior corresponding period to $95.6 million. This represents 23% of sales revenue, which is up from 17.8% a year ago.

Management believes this demonstrates the successful execution of several cost optimisation initiatives outlined in its FY 2022 results, which reduced fulfilment cost per order.

In addition, the company's paid customer acquisition expenses came to 8% of sales revenue in FY 2023, which is a big improvement from 14.9% in the last financial year.

Big returns for investors

The Cettire share price is now up more than 250% over the last 12 months.

Management commentary

Cettire's founder and CEO, Dean Mintz, said:

FY23 has been another year of tremendous growth and transformation for Cettire. Through strong execution against our strategy to maximise profitable revenue growth, Cettire grew rapidly whilst also delivering significant profitability and cash generation.

Cettire is a highly nimble business, with a largely flexible cost base. This enables us to adjust quickly to market conditions and optimise performance. The pace at which we have been able to drive improved performance through FY23 is something I am particularly proud of.


Possibly giving the Cettire share price an additional boost today was news that FY 2024 has started strongly.

Management advised that the positive trading momentum continues into FY 2024 as healthy demand remains.

During the month of July, Cettire delivered positive adjusted EBITDA, with sales revenue increasing by approximately 120% over the prior corresponding period. Mr Mintz concludes:

We are pleased by the early trading in FY24, with all our key markets performing strongly. Cettire is well positioned for another strong year of growth and profitability. We are well advanced in our preparations for China market entry, which remains a very attractive market opportunity and offers significant incremental growth potential.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock jumped 10% after posting strong half-year results

This ASX 200 delivered a finger lickin' good result.

Read more »

a group of tech people gather around a computer operated by a young woman while the group looks on in support.
Technology Shares

Nvidia shares in focus after Q3 earnings smash expectations thanks to AI boom

This tech giant is growing at a spectacular rate thanks to artificial intelligence.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Earnings Results

Webjet shares sink despite 120% half-year profit boost

This travel company delivered stunning growth during the first half. But it wasn't enough for some.

Read more »

A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket
Earnings Results

Guess which ASX 200 tech stock is rising after beating guidance and upgrading targets

TechnologyOne has beaten its guidance and brought forward its medium term targets.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Earnings Results

Guess which ASX 200 stock is rising after announcing a special dividend with its FY23 results

Earnings are down but a special dividend is coming for shareholders.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Earnings Results

This ASX 200 stock just ripped 11% higher. Here's why

Investors are bidding up the ASX 200 stock following the release of its FY 2023 results.

Read more »

a woman in business wear looks at her phone against the window of a high rise space with a city landscape view of tall buildings outside.
Earnings Results

ASX 200 stock surges 11% on mega revenue gains

This ASX 200 tech company has just released its 3Q FY23 update... and the market likes it.

Read more »

gaming asx share price represented by 2 people excitedly holding smart phones
Earnings Results

Guess which ASX 100 share just delivered a 53% profit boost in FY23

Consumers certainly didn't stop spending on gaming this year.

Read more »