Cettire share price surges higher as revenue rockets 178%

a woman wearing fashionable clothes and jewellery checks her phone with a satisfied smile on her face in a luxurous home setting.a woman wearing fashionable clothes and jewellery checks her phone with a satisfied smile on her face in a luxurous home setting.

The Cettire Ltd (ASX: CTT) share price is in the green following the release of the company’s latest quarterly results.

At the time of writing, the Cettire share price is 76 cents, 3.4% higher than its previous close.

Though, earlier this morning the company’s stock was trading at a high of 88 cents, representing a 19.7% gain.

Let’s take a look at how the online luxury goods retailer performed over the 3 months ended 31 March.

Cettire share price gains 3% as revenue takes off

  • $70.3 million of gross revenue – a 178% improvement on that of the prior comparable period
  • $48.7 million of sales revenue – a 163% increase
  • 246,880 active customers – 185% more than the third quarter of financial year 2021
  • Average order value slipped 2% to $682
  • Unique website visits increased 269% to reach 13.3 million last quarter

During the March quarter, Cettire fulfilled 99,671 orders, 173% more than it did during the March quarter of financial year 2021. Though, its conversion rate dipped to 0.75% – a 26% drop.

Cettire has recorded gross revenue of $224.4 million over the first 3 quarters of financial year 2022. That’s a 188% year-on-year improvement.

Its sales revenue for the first 3 quarters reached $162.4 million – a 178% increase.

Though, its average order value for the financial year so far has dipped 6% to $702.

What else happened last quarter?

Last quarter was a big one for Cettire.

It launched new mobile applications, with the aim to boost its market penetration, customer experience, retention, and conversion.

The company believes the apps will also widen its customer base and build its global brand awareness.

They provide customers with push notifications, easy checkouts, and customer ‘wish lists’. At the same time, they give the company more opportunities to employ data analytics.  

Last quarter also saw Cettire’s founder and CEO, Dean Mintz, selling down his holding in the company. Mintz sold 35 million Cettire shares for $1.35 apiece.

The company also announced it’s expanding into beauty products and plans to launch in China.

The Cettire share price fell nearly 68% last quarter.

What did management say?

Mintz commented on the company’s latest quarterly results, saying:

Our business continued to grow very strongly through [quarter 3], driven by increased site traffic, substantially higher active customer numbers and repeat purchasers, which represented more than 50% of gross revenues in the quarter.

We have driven improved marketing efficiency and conversion as we exited the quarter …

The launch of our mobile app … further extends our proprietary technology platform, whilst enhancing brand and customer experience …

In the early stages post-release, we are experiencing higher conversion rates and higher [average order value] for on-app purchases versus other channels.

Cettire share price snapshot

Safe to say, 2022 hasn’t been a great year for the Cettire share price so far.

It has fallen 79% year to date. It’s also 56% lower than it was this time last year.

The post Cettire share price surges higher as revenue rockets 178% appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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