The Cettire Ltd (ASX: CTT) share price could continue to perform over the rest of 2021 after upgrading its expectations.
If you’ve not heard of Cettire, it’s a global online retailer. It offers a large selection of in-demand personal luxury goods through its website, Cettire.com. The business has an extensive catalogue of over 1,300 luxury brands and 160,000 products of clothing, shoes, bags and accessories.
Cettire’s FY21 third quarter
It provided its FY21 third quarter update. Management said that it’s experiencing strong business momentum and favourable consumer trends. This is driving better than expected operating performance.
Cettire revealed gross revenue went up 367% to $25.3 million and sales revenue rose 331% to $18.5 million. The difference between those two figures is net of allowances and returns from customers. The number of orders rose by 437% to 36,455.
Unique website visits went up 325% to 3.6 million. The conversion rate improved 26% to 1.01%.
Management said that the strong performance across key metrics reflects the exciting global market opportunity it has, as well as successful execution of its growth strategy, an improved website experience and its offering is resonating with consumers.
Upgrade of forecast
Cettire said that as a result of this strong trading, which has continued through April, and a positive outlook for the remainder of FY21, the board expects the company to exceed its prospectus forecasts and has upgraded FY21 forecasts.
The sales revenue is now expected to be at least $80 million, compared to the $70 million prospectus forecast. Investors may have expected this with how strongly the Cettire share price has risen since it listed.
It’s also expecting positive statutory EBITDA (EBITDA explained) subject to the timing of certain brand marketing initiatives. That compares to a prior prospectus forecast of a $2 million loss.
Management comments
Cettire Founder and CEO Dean Mintz said: “Cettire’s proposition is clearly resonating with customers. We have done a lot over the past quarter to strongly position the business for sustainable growth. The free returns program has now been embedded as a core feature, we have continued to improve UX [user interface] and our partnership with Afterpay Ltd (ASX: APT) is now live across the US, UK and Australia. Further, we are on-track for launch of our kids category this quarter. The combination of all of these initiatives and the growth we have achieved in Q3 have provided us with the confidence to upgrade expectations for FY21 to levels above those in our prospectus forecasts.”
Summary thoughts on the Cettire share price
Cettire continues to achieve enormous revenue growth. It isn’t really seeing a slowdown like some other e-commerce ASX shares are. If it can keep growing at triple digits for a number of years, then I think it’s definitely one to watch.
I think it’s worth keeping an eye on as one of the relatively unknown ASX growth shares.
