Luxury online fashion retailer Cettire (ASX: CTT) has enjoyed continued profitable growth in the third quarter with sales revenue more than doubling in the period, building on its first half when the company posted an $8 million profit.
Sales revenue was up 108 per cent to $101.5 million in the third quarter - a ‘seasonal low point’ traditionally according to Cettire - while gross revenue experienced a healthy boost too by 86 per cent to $131.8 million.
The number of active customers also grew by 42 per cent to 350,653, with overall growth generated by an uplift of repeat customer revenue according to founder and CEO Dean Mintz, who featured in this year's list of Australia's Top 100 Young Entrepreneurs.
“Cettire continues to demonstrate exceptional operating momentum, with revenue growing at a faster rate than in H1 FY23,” Mintz said.
“It is particularly pleasing to see the Company’s localisation strategy is delivering results, with revenue from its emerging markets outpacing the Group.
“The revenue growth acceleration in April was underpinned by further growth in repeat customer revenue and an acceleration in growth in active customers.”
The company adds that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the four months ending 30 April were at least $7 million, whilst marketing investment represented high single-digits per cent of sales revenue.
Year-to-date adjusted EBITDA for the first ten months was at least $23.7 million, and FY23 sales revenue so far was $329 million.
As of 30 April, net cash balance was approximately $39 million for the Melbourne-headquartered retailer which sells luxury goods from brands such as Gucci, Fendi, Dolce and Gabbana and Prada.
In the month of April specifically, Cettire says sales revenue increased by approximately 160 per cent year-on-year, which it notes represents an ‘acceleration on the growth achieved in Q3 FY23’.
“The company expects to maintain monthly growth rates at least at this level through the balance of FY23,” Cettire says.
Shares in CTT are up 7.77 per cent to $2.01 per share at 10.09am AEST.
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support