Online luxury goods retailer, Cettire Ltd (ASX: CTT) now sports a market capitalisation larger than that of affordable online retailing megalith Kogan.com Ltd (ASX: KGN). Following its share price’s recent rally, Cettire, which doesn’t hold any inventory, has a market capitalisation of around $1.2 billion.
For comparison, Kogan, which faced a slug of inventory issues in financial year 2021, has a market capitalisation of approximately $1.1 billion.
Over the last month, the Cettire share price has gained a massive 41%. Right now, its share price is $3.17, 2.9% lower than its previous close.
Let’s take a look at what’s been driving Cettire on the ASX lately.
The Cettire share price’s incredible run
The Cettire share price is having an great month on the ASX, with its sights set on boosting its value even more.
Right now, the Cettire share price represents 532% more than its prospectus’ offer price of 50 cents per security. The company’s Initial Public Offering (IPO) occurred on 17 December 2020.
Additionally astounding, is that under Cettire’s prospectus’ offer price, it expected a market capitalisation of around $190 million.
The company has seemingly made bank from the luxury goods market. However, it doesn’t hold any of its own inventory and doesn’t liaise with big-name fashion houses.
Instead, Cettire sources products from a diversified network of suppliers that ship directly to customers. It often has multiple suppliers for single products.
Over financial year 2021, the results of which the company announced on 31 August, Cettire’s sales revenue increased by 304%. At the end of the 12-month period, it had around 200,000 products from 1,700 brands on its online store.
Potentially continuing to drive the Cettire share price, is the company’s positive outlook for financial year 2022.
It plans to launch a children’s wear segment, invest into its marketing, increase the number of products available on its platform, and build on and improve its technology to provide positive customer experiences.
The post The surging Cettire (ASX:CTT) share price means the company is now bigger than Kogan appeared first on The Motley Fool Australia.
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More reading
- These three ASX retail shares delivered double (and triple!) digit returns in 2021
- Why the Cettire (ASX:CTT) share price is slumping 5% today
- The Cettire (ASX:CTT) share price is up a whopping 500% this year
- Why the Cettire (ASX:CTT) share price rocketed 24% higher on Friday
- ASX reporting wrap-up: Harvey Norman, Cettire, PointsBet
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. owns shares of and has recommended Cettire Limited and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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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