The Cettire Ltd (ASX: CTT) share price increased by almost 5% after announcing it’s expanding into children’s wear.
Cettire’s child wear expansion plans
Cettire had previously announced the plan to expand into this new category with the release of the company’s FY21 half-year result.
The ASX online retail share has access to over 6,000 children’s wear products and will seek to expand the range over time.
The company confirmed the soft launch of this category expansion with a new website vertical on 30 June 2021.
Management comments
Cettire Founder and CEO Dean Mintz said: “We are excited by the expansion of Cettire into children’s wear and see excellent growth prospects for this category.
“Having rapidly scaled Cettire over the past three years, our expansion into children’s wear is a natural extension of our range. 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. We continue to assess further opportunities to expand our addressable market and our expansion into children’s wear highlights the inherent scalability of our business model, which does not require inventory investment.”
Summary thoughts on Cettire and the share price
The Cettire share price looked in trouble after a report in the Australian Financial Review into Cettire’s business model. But it rebuffed those concerns, has expanded into another category and continues to grow revenue quickly.
It could be one of the ASX growth shares worth watching, but it’s now priced highly compared to revenue and the AFR did highlight some things that are worth thinking about.
