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It is always interesting to see which ASX shares performed the best during a financial year. To help you out, we’ve compiled a list of the five best performing ASX 200 shares in FY21.

The S&P/ASX 200 Index (ASX: XJO) is one of the most important indices in Australia. It contains all of the largest companies on our stock market, and it’s a barometer for how well our economy is doing.

Here are your top performers!

Shares making the ASX 200 A-TEAM in FY21

You might notice a bit of a pattern in this list… Mining and resource companies dominated the index during the last financial year.

An influx of demand spurred on by generous monetary policies globally elevated many commodity prices to new heights. Hence, miners have enjoyed bumper revenues and profits. Though, it might not have been the companies you would expect.

Orocobre Limited (ASX: ORE)

Orocobre is one of Australia’s largest lithium producers, with a market capitalisation of $2.15 billion. The company, which is based in Brisbane with operations spanning the world, primarily produces lithium hydroxide, carbonate, and spodumene.

Funnily enough, Orocobre made the ASX 200 index by the skin of its teeth. The company was added to the index just recently in the last quarterly rebalance. Increased demand for the material commonly used in batteries boosted the company’s share price over the year.

Interestingly, the lithium producer announced its plan to merge with Galaxy Resources Limited (ASX: GXY)

In FY21, Orocobre delivered shareholders a staggering return of 172%.

HUB24 Ltd (ASX: HUB)

Proving money could be made in something other than mining/resources in FY21, HUB24 slots into the list. The company operates in the financial sector, providing wealth management solutions to connect advisers and their clients.

HUB24’s share price ascended towards the tail end of last year. The acquisition of Ord Minnett‘s PARS portfolio service expanded the company’s funds under management (FUM) significantly. In March 2021, total FUM reached $51.39 billion, representing an increase of 237% on the prior corresponding period.

The stellar growth clearly impressed investors over the year. Shares in this ASX 200 company grew by 177% in value during the last financial year. Shareholders must be pleased with that!

Lynas Rare Earths Ltd (ASX: LYC)

Now it’s back to mining companies. Making the podium finish in FY21 is rare earths giant, Lynas Rare Earths. This company boasts a market capitalisation of $5.11 billion following a momentous rally out of the COVID-19 crash.

Rare earth elements are commonly used in rechargeable batteries for electric cars, computers, wind turbines, etc. Prices for the rare earth neodymium and praseodymium (NdPr) more than doubled between March 2020 and March 2021, pushing the Lynas share price higher.

Well, shareholders were rewarded for holding through the volatility. This ASX 200 share nearly tripled in FY21 with a gain of 197%.

Pilbara Minerals Ltd (ASX: PLS)

Would you look at that, it’s another lithium producer. Pilbara Minerals is Orocobre’s bigger competitor with approximately 30% more annual revenue in the 2020 calendar year.

As of December 2020, the company’s trailing 12-month revenue was $105.5 million, an increase of 59.4% from December 2019. Additionally, the company’s strategy and outlook announcement on 11 May showed plans to further increase production.

It might be hard to believe, but the Pilbara share price has provided its investors with better returns than Bitcoin (CRYPTO: BTC) in the last financial year. The ASX 200 constituent gained a whopping 437%. Meanwhile, the OG cryptocurrency increased by 250%.

Chalice Mining Ltd (ASX: CHN)

It is time to take our hats off and crown the official best-performing ASX 200 share of FY21… with a mind-boggling 657% return in a twelve-month period — it is none other than Chalice Mining.

Investors of this mining explorer have struck gold. Chalice has 3 major operations in Australia including the Julimar Nickel-Copper-PGE Project, Pyramid Hill Gold Project, and Hawkstone Nickel-Copper-Cobalt Project. In addition to these, it is also involved in a number of joint ventures.

Plenty of excitement has surrounded the explorer’s Julimar project. Several releases from the company have indicated extensive nickel-copper anomalies.

The post Meet the best performing ASX 200 shares of FY21. Are yours on the list? appeared first on The Motley Fool Australia.

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• These are the 5 best ASX mining and resource shares of FY21
• 5 lessons for ASX share investors from financial year 2021

Motley Fool contributor Mitchell Lawler owns shares of Lynas Corporation Limited and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. 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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It’s been an exhausting year keeping up with the Afterpay Ltd (ASX: APT) share price, especially through its sharp pullbacks between February and May.

But overall FY21 was a good year for Afterpay, with shares rising by 92%. Most of those gains came between July last year and January 2021.

While the Afterpay share price has seesawed back and forth over the past year, let’s take a look at what the company has planned for FY22.

What Afterpay is up to in FY22

Launch of Afterpay Money app

Back in February reporting season, the buy now, pay later (BNPL) pioneer revealed a new stand-alone app to help Australians manage their money.

The app will compete with household banking and neobank apps, offering classic features such as deposit and savings accounts. In addition, the app can link with an existing Afterpay account, bringing savings and BNPL information into one spot.

According to Afterpay’s third-quarter results, the company has a “skeleton app in production with functioning deposit and savings accounts, with … prototype testing continuing with customers ahead of launch”.

The company said its new app is expected to launch in the first half of FY22.

European expansion

On 16 March, the Afterpay share price increased 3.12% to $111.71 after a successful launch across France, Spain, and Italy through its subsidiary, Clearpay.

Following its initial launch into southern Europe, the company said: “Clearpay is on track to launch in Germany during H1 FY22”.

Afterpay believes this will bolster its ecommerce market in Europe to more than 300 billion euros (A$494 billion).

Asia expansion

Expansion into Asia came into the conversation when Chinese internet giant Tencent acquired a 5% stake in Afterpay back in May 2020.

That announcement on 4 May witnessed a 30.3% surge in the Afterpay share price to $38.00.

At the time, Afterpay co-founders Anthony Eisen and Nick Molnar said this of the move. “To be able to tap into Tencent’s vast experience and network is valuable, as is the potential to collaborate in areas such as technology, geographic expansion and future payment options on the Afterpay platform.”

Afterpay have since established a base in Singapore to drive its development for the South-East Asian market. But besides the mention that its Asian base was an “early-stage investment” back in its half-year results, we haven’t received an update since.

What happened to a potential US listing?

Afterpay’s third-quarter results said the company was working with advisors to investigate prospects of a US listing. According to Afterpay, there was no timeline set for a board decision.

At the time of writing today, the Afterpay share price is $119.30 — up 0.96% on yesterday’s close.

The post Got Afterpay (ASX:APT) shares? Here’s what the company has in store in FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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The PEXA Group Limited (ASX: PXA) share price has made its long-awaited appearance on the ASX boards on Thursday. This follows the completion of the online property exchange network operator’s initial public offering (IPO).

However, its first day has been a bit of a mixed one. At one stage, the PEXA share price was down over 4% to $16.40.

It has since rebounded and is now trading broadly flat at $17.12.

The PEXA IPO

PEXA’s shares landed on the ASX today after raising gross proceeds of $1.174 billion at a price of $17.13 per share. This gives the company an enterprise value of $3.3 billion.

The company notes that the IPO has introduced new institutional and retail shareholders who can support PEXA through the next phase of its growth. In addition, Link Administration Holdings Ltd (ASX: LNK) remains the company’s largest shareholder with a 42.8% interest, followed by Commonwealth Bank of Australia (ASX: CBA) with a 23.9% interest.

PEXA’s Chairman, Mark Joiner, was pleased with the outcome of the IPO.

He commented: “We are delighted with the outcome of the IPO and the support shown by institutional and retail investors. Our listing today on the ASX marks another important milestone for PEXA, as we look to explore opportunities to take our experience and expertise into new markets in Australia and internationally. I would like to thank our existing shareholders for their ongoing support and warmly welcome new investors, including many of our employees and practitioner partners, to share in the exciting journey we have ahead of us.”

Trading update

Ahead of its float, PEXA provided the market with an update on its performance.

According to the release, property market volumes remained strong at the end of FY 2021. This saw transaction volumes through the PEXA Exchange in the fourth quarter of FY 2021 increase 4% ahead of its prospectus forecasts.

More than 960,000 PEXA exchange transactions were processed, compared to its forecast of 923,000. This also represents a 48% increase over the prior corresponding period in FY 2020.

And while there was a slight issue yesterday which led to the platform being offline for almost two hours, it notes that all property settlements that were in ‘Ready’ status proceeded yesterday, with the remainder requiring rebooking. This hiccup may be what has taken some of the shine off the PEXA share price on day one.

The post The PEXA (ASX:PXA) share price is sinking 4% after its IPO 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. owns shares of and has recommended Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. 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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The Predictive Discovery Ltd (ASX: PDI) share price is rocketing in early afternoon trade, up 19.5% to 9.1 cents.

Predictive Discovery is an Australian gold exploration company with a range of projects located in West Africa. 

Below we take a look at the ASX resource company’s latest drill results.

What drill results did the company announce?

Predictive Discovery reported promising gold results from 4 diamond drill holes at its Bankan Project in Guinea.

Drilling at NE Bankan intersected broad zones of high grade gold at depth, returning 44 metres at 8.0 grams of gold per tonne (g/t) Au from 265 metres, which the company said included a “very high-grade intersection” of 17 metres at 18.1 g/t Au from 274 metres.

Predictive Discovery also announced that 2 shallow drill holes at Bankan Creek intersected high-grade gold mineralisation.

The explorer said this supports the continuity of the mineralised zones and additional ounces to its Maiden Resource Estimate. It expects that estimate in the September quarter.

Commenting on the results, Predictive Discovery’s managing director, Paul Roberts said:

These outstanding new results are further confirmation of the continuity and grade of the NE Bankan and Bankan Creek gold deposits. The intersection of 44m at 8.0g/t Au from around 240m vertical depth is an absolute standout, better than any intercept we have obtained so far in the deposit.

Roberts said the company has 4 more deep diamond drill holes with results yet to be reported at NE Bankan. They also said infill diamond drilling at Bankan Creek is ongoing. The last holes are expected to be completed by mid-July.

“Following receipt and interpretation of the last results, the company will move onto the Maiden Resource estimation, in keeping with our September quarter timetable,” Roberts said.

Predictive Discovery share price snapshot

The Predictive Discovery share price is back in the green for the 12 month period to date, up 2.22%. That trails the 25.26% gains posted by the All Ordinaries Index (ASX: XAO).

In 2021, the Predictive Discovery share price has been on a tear, up 51.67% so far.

The post Why the Predictive Discovery (ASX:PDI) share price is rocketing 20% today appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. 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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The Knosys Ltd (ASX: KNO) share price is flying more than 22% higher today.

Shares in the tech company are surging after announcing an acquisition earlier today.

Lets take a look at what Knosys is set to acquire and why shares in the company are flying.

Knosys shares jump on acquisition news

Knosys announced earlier today that the company will be acquiring library management software (LMS) business LIBERO.

According to the announcement, Knosys will acquire the LIBERO business through a share-sale agreement via a special purpose subsidiary.

The transaction will include $4 million in cash in addition to $1 million worth of fully paid ordinary shares in Knosys. The company noted that the acquisition will be funded from its existing cash resources.

Knosys noted that the acquisition is subject to the satisfaction of certain agreed conditions. Completion is expected to be no later than 31 August 2021.

Why is Knosys acquiring LIBERO?

In its investor presentation, Knosys noted that the strategic acquisition is in line with the company’s growth strategy to deliver multiple software-as-a-service (SaaS) product offerings.

Knosys highlighted LIBERO’s global revenue footprint, with 116 clients located across 8 countries. In addition, the company noted that the global market for LMS is expected to reach US$2.4 billion by 2024. Knosys also expects that over the next 5 years, there will be increased demand for newer library system technologies capable of integrating mobile end-user applications.

According to Knosys, the acquisition will result in an annualised recurring revenue (ARR) multiple of around 2.3 times.

More on Knosys

Knosys is a SaaS provider based in Australia that specialises in information technology. The company offers a range of software solutions designed to boost productivity, collaboration and connectivity. Knosys’ Knowledge IQ solutions and the GreenOrbit Intelligent Intranet solutions are 2 of its flagship products.

The company’s growth strategy is focused on enabling Knosys to scale its global operations, acquire new development capabilities. In addition to the expansion, the company also aims to maintain a cost-effective shared services model.

At the time of writing, shares in Knosys are trading more than 11% higher for the day at 15 cents. Shares in the company were up more than 22% earlier, hitting an intraday high of 16.5 cents.

The post Here’s why the Knosys (ASX:KNO) share price is flying today appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 no position in any of the stocks mentioned. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the new financial year in the red. At the time of writing, the benchmark index is down 0.4% to 7,282.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Cettire Ltd (ASX: CTT)

The Cettire share price has risen 5% to $2.78. This follows an announcement which reveals that the online luxury goods retailer is expanding into the children’s wear segment. The launch includes a new website vertical where the company plans to host 6,000 children’s wear products. It will also seek to expand its range over time.

Damstra Holdings Ltd (ASX: DTC)

The Damstra share price has jumped 5.5% to 87.5 cents. This morning the workplace management solutions provider announced a new $20 million debt facility. Damstra notes that this will improve its operating cashflow and provide extra capital to support its global growth ambitions. The new facility is with San Francisco-based Partners for Growth, which specialises in funding growing technology companies.

IGO Ltd (ASX: IGO)

The IGO share price is up 4.5% to $7.99. Investors have been buying the clean energy-focused mining company’s shares after it completed its transformational transaction to form a new lithium joint venture with Tianqi Lithium. The $1.9 billion transaction sees the company acquire a 49% non-controlling interest in Tianqi Lithium Energy Australia. This gives it a 24.99% indirect interest in world-class Greenbushes Lithium Operation and a 49% interest in the Kwinana Lithium Hydroxide Plant.

Rhipe Ltd (ASX: RHP)

The Rhipe share price has surged 18% higher to $2.47. The catalyst for this was news that the leading cloud and technology solutions provider has received a takeover approach. According to the release, it has received a confidential, non-binding, conditional proposal from Norway-based Crayon Group valued at $2.50 per share. This represents a 19.6% premium to its last close price. Management will allow Crayon Group to undertake limited confirmatory due diligence on a non-exclusive basis.

The post Why Cettire, Damstra, IGO, & Rhipe shares are storming higher 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. owns shares of and has recommended Cettire Limited and Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings 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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NeuroScientific Biopharmaceuticals Ltd (ASX: NSB) shares jumped more than 7% in early trade after the company released the readouts for the successful completion of its pivotal ocular safety study. Since then, however, the NeuroScientific share price has reversed and is currently trading 1.49% in the red at 33 cents.

Let’s take a look at what unfolded this morning for the Australian biotech company.

What was the study?

The NeuroScientific share price received a temporary boost this morning after the company provided the ASX with a pre-market update. NeuroScientific’s 4-week safety and tolerance study investigated low to high dose regimes of its lead drug candidate emtinB, administered via intravitreal injection. EmtinB is being developed as a potential treatment for Alzheimer’s disease and dementia.

Prospective drug candidates in Australia must first pass rigorous safety and tolerance testing prior to advancing towards efficacy and dosing trials.

NeuroScientific advised that emtinB produced no serious adverse outcomes related to treatment in the study cohort across a duration of 28 days.

So, according to the company, today’s outcome enables NeuroScientific to advance towards starting Phase 1 clinical study protocols for emtinB, which are set for the second half of this year. There are 3 clinical study phases to complete before successful registration onto the market.

Management commentary

NeuroScientific CEO and managing director Matt Liddelow commented on today’s update:

NeuroScientific is pleased to report these positive safety results for EmtinB, which is a major advancement for our ocular R&D program in the lead up to starting a Phase I clinical study.

NeuroScientific share price snapshot

The NeuroScientific share price has gained 32% since the start of this year. It has a 12-month return of more than 53% at the time of writing.

At the current share price of 33 cents, the company has a market capitalisation of around $48 million and has a 52-week range of 18.5 cents to 38 cents. NeuroScientific shares reached their 52-week high just last month on 24 June.

The post NeuroScientific Biopharmaceuticals (ASX:NSB) share price wobbles on study results appeared first on The Motley Fool Australia.

More reading

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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 no position in any of the stocks mentioned. 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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The Magellan High Conviction Trust (ASX: MHH) share price is up around 8% after announcing an important change to its structure.

Magellan High Conviction Trust intends to transition to an ETF

It was announced that Magellan High Conviction Trust intends to transition from a closed-ended listed investment trust to an open-ended active exchange-traded fund (ETF).

If the transition is implemented, which requires unitholder and regulatory approvals, unitholders will be able to apply for and redeem units directly with Magellan Financial Group Ltd (ASX: MFG) and will also have the ability to buy and sell units on the ASX generally at a tight spread to net asset value.

The CEO and Magellan, Brett Cairns, said:

Magellan is continuously focused on ways to improve the experience of investors in our funds. On balance, we believe the benefits for unitholders of reducing the trading discount in MHH outweighs the benefits of MHH remaining as a closed-ended fund. We believe transitioning the fund to an open-ended active ETF is in the best interests of investors as it will allow direct access to the fund for applications and redemptions and see the units in the fund trade at a tight spread to net asset value going forward.

How big was the discount of the Magellan High Conviction Trust share price?

Yesterday, the Magellan High Conviction Trust share price ended the day at $1.57. The estimated net asset value per unit was $1.77 yesterday, translating to a discount of 11.3%.

Its current indicative NAV is $1.737, so the NAV has fallen since yesterday. But the share price is now $1.66.

Portfolio details and performance

At the end of May 2021, it said that its net performance was 11.8% over the prior 12 months and it has achieved 9% per annum since inception in October 2019.

Magellan said that its top five holdings in alphabetical order were: Alphabet Inc, Facebook Inc, Microsoft Corporation, Netflix Inc and Tencent Holdings.

In terms of diversification, Magellan showed how the portfolio was split between sectors and geographically.

Over half of the portfolio derives revenue from internet and e-commerce sources, 22% is from IT, 6% from payments, 7% from financials, 6% from restaurants and 4% is cash.

Looking at the geographical exposure, 39% of revenue came from the US, 16% from Western Europe, 18% from China, 13% from emerging markets (excluding China), 10% from the rest of the world and 4% of the portfolio is in cash.

The post Why the Magellan High Conviction Trust (ASX:MHH) share price is soaring appeared first on The Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Ever since the launch of its first Roadster in 2008, Tesla (NASDAQ: TSLA) hasn’t looked back. Over the years, the company has proved many of its naysayers wrong. Tesla can be credited for the ongoing transformation of the auto industry from internal combustion engine vehicles to electric ones. The company is already threatening the decades-long dominance of legacy car companies. Let’s see where Tesla could be 10 years down the line.

Tesla’s growth plans

Tesla sold 499,550 electric vehicles last year. It expects 50% average annual growth in deliveries over a multi-year horizon. It has two factories right now: at Fremont, California, and Shanghai, China. Moreover, it is constructing two more factories, one each in Berlin and Texas. The start of production at its Berlin factory got delayed from the end of this year to early next year while the Texas factory remains on track to start deliveries late this year.

Are Tesla’s growth projections realistic?

Between 2016 and 2020, Tesla grew its deliveries at an average rate of 65%. The EV maker’s annual deliveries rose from 76,230 in 2016 to 499,535 in 2020. Assuming its annual deliveries grow at an average rate of 50% in the next four years, and the rate falls to an average of 25% beyond that, Tesla could be selling nearly 10 million cars by 2030. For some perspective, Toyota (NYSE: TM) sold 9.5 million vehicles in 2020 — the highest of all automakers in the world.

If we were to base this projection solely on its trailing four-year growth rate, Tesla’s expected growth numbers look reasonable. However, the past growth was on a lower base to begin with. Ramping up production at such high rate may not be easy.

Tesla has a production capacity of roughly 1 million cars right now. With its planned factories at Berlin and Texas, it would likely double this capacity. Tesla might still need around 16 more plants to reach its 10 million target, assuming an average capacity of 500,000 units. Even if Tesla constructs bigger factories in future, it might not be feasible to increase capacity beyond a limit. For perspective, Hyundai Motor’s (OTC: HYMTF) Ulsan facility in South Korea, one of the largest in the world, has an annual capacity of around 1.5 million units while Volkswagen’s (OTC: VWAGY) Wolfsburg plant has a capacity of over 800,000 units.

A key constraint in Tesla’s production growth could be the availability of batteries. The company plans to produce its own batteries, in addition to buying them from suppliers, to meet its high demand.

Though challenging, Tesla’s growth numbers are achievable. Tesla has maneuvered production challenges in the past, and it could well continue to do so. Even if we assume some more delays and lower numbers, Tesla could still be among the top five automakers in the world by 2030.

Electric vehicles and autonomous driving

Apart from production challenges, Tesla needs to find enough buyers for its cars globally. It is the leader in electric vehicles right now. The International Energy Agency estimates that under current policies the number of electric vehicles globally could rise to 145 million by 2030 from around 11 million in 2020. Tesla is well positioned to capture this expected growth.

However, legacy automakers are also rolling out electric versions of their top car models. That could significantly amp up competition for Tesla in the coming years. Its brand image and product features are its key strengths. Its top EV models right now offer the longest range available.

Tesla is focused on ramping up production, removing bottlenecks, and improving battery range. The company is working on all fronts simultaneously and plans to expand rapidly. In short, despite competition and challenges, Tesla has the potential to become one of the largest automakers in the coming decade.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post How big could Tesla get by 2030? appeared first on The Motley Fool Australia.

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Rekha Khandelwal 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 Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Cettire Ltd (ASX: CTT) share price is rocketing today after the company announced an expansion in its children’s wear segment. 

At the time of writing, the Cettire share price is up 6.82%, trading at $2.82 after reaching an intraday high of $2.86 this morning.

Today’s uplift is likely to be welcome news for the global luxury online retailer and shareholders, after the company’s shares were decimated in mid-June, dropping 21%. The drop in the Cettire share price came after questions about the authenticity of its products and concerns over its business model.

The company markets itself as an online destination exclusively for luxury fashion. On its e-commerce site, it has products from some 500 designers, with brands such as Prada, Gucci, Saint Laurent, Balenciaga and Valentino.

Why is the Cettire share price moving today?

In today’s release, Cettire confirmed its category expansion into the children’s wear segment. The launch includes a new website vertical where the company plans to host 6,000 children’s wear products and will seek to expand its range over time.

Cettire advised the children’s wear range was now live, with shipping available to more than 50 markets.

What did management say?

Cettire CEO Dean Mintz said the foray into children’s wear increased Cettire’s addressable market, and also the spend of its current customers.

The children’s wear category is an attractive adjacent segment in the luxury apparel industry. We are excited by the expansion of Cettire into children’s wear and see excellent growth prospects for this category.

He added that the expansion “highlights the inherent scalability of our business model, which does not require inventory investment.”

The post Cettire (ASX:CTT) share price lifts 7% on expansion news appeared first on The Motley Fool Australia.

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Motley Fool contributor Frank Tzimas 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. 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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