Cettire Valuation Surges by $370M After "Strongest Trading Half" Since IPO

Shares in Cettire (ASX: CTT) jumped 30% in early trade this morning to $4.36 after the luxury fashion e-commerce group reported the "strongest trading half" since its 2020 initial public offering (IPO). This temporarily added approximately $370 million to the company's market capitalization, bringing it to $1.57 billion. However, by the time of publication, shares were up 20.5%, signifying a lower rise in value to $1.46 billion.

"I believe this is the strongest trading half since Cettire went public several years ago and further demonstrates the uniqueness of our business model, the benefits of our proprietary technology platform, and the strength of our execution," says Mintz.

"Our proposition is clearly resonating with both the demand and supply sides of our platform as we continue to rapidly penetrate the global personal luxury goods market."

Mintz highlights the company's broad-based momentum across both established and emerging markets during the period. The "exceptional" result was supported by localization initiatives such as proprietary storefront software and multi-language localized payment options, as well as marketing execution. "Notably, we observed an acceleration in growth in revenue and active customers through the December quarter, while continuing to deliver significant profitability and cash generation," Mintz says after active customers reached close to 576,000.

Following the December momentum, Cettire also notes gross revenue for January 2024 was up 80% year-on-year while adjusted EBITDA profitability was maintained.

As part of its localization strategy, Cettire plans to launch a direct channel to consumers in China as it continues to focus on readiness for the Chinese market. This has meant re-platforming the company so it can operate scalably and seamlessly inside and outside of China's firewall.

The company reports a current inventory value of more than $2 billion.

Source: Business News Australia