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Cettire Enters Kid’s Market, Share Prices Increase 6.8%
Cettire (ASX:CTT), the luxury Australian online retailer, is entering the children’s market, increasing its share price by 6.82 percent.
The retailer has included the new verticle on its website, selling children’s designer goods from brands like Ralph Lauren to Emporio Armani.
As a result, the retailer’s share price has increased by almost seven percent, driven primarily by the expansion into the new category.
“The children’s wear category is an attractive adjacent segment in the luxury apparel industry,” said Dean Mintz, the CEO of Cettire. “We are excited by the expansion of Cettire into children’s wear and see excellent growth prospects for this category.”
In recent weeks, Power Retail has discussed the retailer’s topsy-turvy share price, which plummeted dramatically by 21.429 percent in mid-June. The reason why the share dropped so ceremoniously came after questions of the brand’s authenticity of its products and further concern regarding the retailer’s business model.
Of these reports, the retailer responded: “Cettire has confidence in the sustainability of its supply chain and authenticity of the products available on its platform. Cettire sources products from a large and diversified global network of suppliers with what it believes is minimal concentration risk.”
The share price increased once again in a post-trading halt stabilisation, as reported by Power Retail at the end of June.
The expansion into kidswear began with a soft launch on June 30 and was flagged in CTT’s H1Fy21 report. “Having rapidly scaled Cettire over the past three years, our expansion into children’s wear is a natural extension of our range,” Mitz said regarding the category. “It increases Cettire’s addressable market, whilst also providing scope to grow share of spend with existing customers and introduce new potential customers to Cettire’s online luxury goods platform.”
The new launch includes the expansion of more than 6,000 products into the kid’s category, with shipping available to more than 50 markets. It is possible that the retailer would soon enter other new markets, such as the beauty category, akin to other retailers such as THE ICONIC. Since the announcement, Cettire’s share price is up 6.82 percent, now up 24.22 percent over a five-day period.