Down 48% in 2024, why did this ASX 300 stock just surge 10%?

The S&P/ASX 300 Index (ASX: XKO) is up 0.6% today, with one beaten-down ASX 300 stock doing a lot of the heavy lifting.

The surging stock in question is online luxury goods retailer Cettire Ltd (ASX: CTT).

The Cettire share price closed yesterday trading for $1.50. In morning trade on Wednesday, shares leapt to $1.65 apiece, up 10%. After some likely profit-taking, shares are currently changing hands for $1.58, up 5.5%.

Here’s what’s piquing investor interest in the ASX 300 stock today.

Why is the ASX 300 stock flying higher today?

The Cettire share price is charging higher after the ASX 300 stock released additional financial disclosures for its full FY 2024 operations, covering the 12 months through to 30 June.

The company reported on its preliminary expectations for the full year on 24 June. That update saw investors overheat their sell buttons, with the ASX 300 stock closing the day down a precipitous 49.3% at $1.135 a share.

Today, Cettire said it is in a position to confirm gross revenue, average order value, active customers and gross revenue from repeat customers.

These unaudited, now-confirmed metrics are as follows:

• Gross revenue of $975 million to $980 million, up 81% to 82% from FY 2023
• Average order value of $795 to $800, up 6% to 7% year on year
• Active customers of just over 692,000, up 64% from the prior year
• Gross revenue from repeat customers represented 61% of the total, up 3% from FY 2023

Cettire expects to release its full-year FY 2024 results in the second half of August.

What is management saying?

Commenting on the headwinds dragging on the ASX 300 stock in June, Cettire CEO Dean Mintz said that a softening demand environment and an increase in promotional activity “has been visible across our footprint, particularly in the last several weeks as the market has entered the Spring Summer 24 sale period”.

Mintz added:

Additionally, we believe the market is currently being impacted by clearance activity as certain players exit parts of the market.

To continue to expand our market share, Cettire has selectively participated in the promotional activity, leading to an increase in marketing costs relative to sales and a decline in delivered margin percentage.

But all is not doom and gloom for the online retailer.

“The company continues to grow rapidly, is profitable and cash generative,” Mintz stressed.

Cettire share price snapshot

Despite today’s welcome lift, shares in the ASX 300 stock remain down 46% year to date.

The post Down 48% in 2024, why did this ASX 300 stock just surge 10%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.