Cettire's share prices are climbing back after a dramatic slump this afternoon. This comes after the retailer released its FY21 results, which saw revenue increase by 304 percent.
The online luxury retailer reported sales revenue growth of 304 percent to $92.4 million, exceeding the prospectus forecast by 32 percent ($70 million), driven by strong order growth, increasing revenue per customer and high acquisition rates. Its gross revenue has also seen an uplift, reporting a 333 percent increase to $124.5 million.
CEO and Founder Dean Mintz explain that the year was ‘exceptional’ for the retailer, with the company’s rapid growth supported by a 285 percent increase in active customers, reaching 114,830. This is compared to 29,838 reported in FY20.
Cettire’s product margin increased 307 percent to $33.8 million and ‘delivered margin’ increased by 243 percent to $22 million. Despite the increase in active customers in FY21, the AOV dropped by four percent. However, Cettire’s conversation rate increased from 0.99 percent to 1.22 percent. The online retailer reported a cash balance of $47.1 million with no debt, with operating cash flow increasing by 131 percent to $12.7 million, compared to $5.5 million in FY20. This was underpinned by the company’s sales growth, capital-light business model and capital profile.
“I am particularly proud of the substantial increase in active customers, very strong revenue growth, robust product margins and the increasing proportion of revenues from repeat customers,” he said. Cettire reported that 40 percent of gross revenue is from repeat customers, compared to 26 percent in FY20.
“The achievements over the past 12 months, both operationally and financially, demonstrate the traction we have with consumers, the scalability of our business model and the benefits of our proprietary technology platform,” Mintz explained. “FY21 has been a year of outstanding operational progress for the business. We implemented a number of important enhancements to our consumer proposition, including embedding free returns and expanding our addressable market via entry into the children’s wear segment. The recent launch of our proprietary e-commerce storefront solution provides us significant new capabilities to enhance customer experience and enable global growth.”
Cettire has reported a strong start to FY22, with July’s unaudited gross revenue increasing by 181 percent YoY. “There is a significant market penetration opportunity ahead for Cettire. A key objective in pursuing our IPO was to unlock new and incremental growth opportunities and the results over the past 12 months have proven our ability to deliver on our strategy,” said Mintz.
Furthermore, the company has plans to invest and ‘maximise’ its global revenue potential, with a near-term focus on customer acquisition, technology enhancements and building organisational capability. “Our focus in FY22 is on continuing to enhance our customer proposition, centred around our vast range of luxury products, value and rapid fulfilment, all of which are enabled by our deep and diverse supply chain and world-class, proprietary technology,” said Mintz.
Following the release of the results, Cettire’s share price took a sharp downturn, dropping by more than three percent. Starting the day at $2.69 a share, it increased to $2.81 before slumping to $2.49, which soon began stabilising and climbing back to $2.60.
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