The Cettire Ltd (ASX: CTT) share price is lifting off on Wednesday morning.
At the time of writing, the ASX 300 online luxury retailer's shares are up 10% to $2.90.
Why is the Cettire share jumping?
Investors have been fighting to get hold of the company's shares today following the release of its first quarter update.
Here's a summary of how it performed during the three months ended 30 September compared to the prior corresponding period:
- Gross revenue up 98% to $167.4 million
- Sales revenue up 92% to $127.1 million
- Adjusted EBITDA up ~58% $8.7 million
- Active customers up 69% to 487,289
What happened during the quarter?
Cettire continued its strong growth during the quarter despite the tough economic environment.
Gross revenue almost doubled year on year to $167.4 million thanks to a combination of a 69% lift in active customers, a 2% increase in average order value, and a higher level of repeat customers.
Positively, this strong form has continued into October, with management reporting sales revenue growth of +80% month-to-date.
Commenting on the quarter, Cettire's CEO, Dean Mintz said:
Cettire continues to rapidly increase penetration within the large global personal luxury goods market. During the period, we experienced broad-based momentum across both Established and Emerging Markets, supported by our localisation initiatives and marketing execution. We observed strong customer growth and an increase in AOV towards the quarter end in line with the transition to the traditionally stronger fall-winter season.
Mintz also revealed that Cettire's profitable growth continued during the period. Its adjusted EBITDA of $8.7 million was achieved on a delivered margin of greater than 20%, whilst marketing investment was high single-digits percent of sales revenue.
Cettire's net cash balance increased to approximately $59 million at the end of the period.
Speaking about the second quarter, the CEO concludes:
Whilst Q1 is traditionally a seasonal low point, we observed an improvement in profit trends during September which provides confidence in the Q2 outlook. The positive quarterly cash flow was supported by the underlying trading performance, supportive working capital dynamics and conversion of receivables to cash.
