The Cettire Ltd (ASX: CTT) share price is on fire again on Tuesday and smashing the All Ords index.
In afternoon trade, the online luxury fashion retailerâs shares are up 15% to $1.78.
This means the Cettire share price has now risen a whopping 137% this month.
This has reduced its year to date decline to approximately 52%.
Why is the Cettire share price rocketing higher?
Investors have been scrambling to buy the companyâs shares this month after it released a strong quarterly update.
During the three months ended 30 September, despite rising living costs and global recession fears, Cettire reported a 62% increase in quarterly gross revenue over the prior corresponding period to $84.4 million.
Management notes that this was driven by the doubling of its active customers to 287,626 and improvements in repeat customer spending.
Another positive was that the Farfetch rival achieved this top line growth in a profitable manner. The company revealed that it delivered adjusted EBITDA of $5.5 million thanks partly to a reduction in its marketing investment as a percentage of sales revenue to low double-digits.
What about its outlook?
While the economic environment remains highly uncertain, the companyâs CEO Dean Mintz appears confident that Cettire is well-placed for the all-important second quarter.
He stated that âdemand environment remains healthâ and that he has âconfidence in our Q2 outlook.â
Can Cettireâs shares keep rising?
Based on the current Cettire share price, the company has a market capitalisation of approximately $700 million. This means that its shares are trading at 2.1x annualised sales.
As a comparison, its much larger and well-known rival Farfetch is trading at just 1.4x sales at present.
This could be an indication that the Cettire share price has now jumped into overvalued territory. But time will tell if that is the case.
The post Back in fashion? This ASX All Ords share is up over 130% so far in October appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro 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 Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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