Cettire Q3 FY24 Trading Performance Update

Cettire Limited (ASX: $CTT) has reported a robust trading performance for the quarter ended 31 March 2024. The company achieved sales revenue of $191.0 million, marking an 88% increase compared to the prior corresponding period. Additionally, the adjusted EBITDA reached $6.0 million, with active customers growing by 84% to approximately 644k. Cettire also confirmed the launch of its China market in Q4 FY24.

Executive Commentary on Q3 FY24 Performance

Cettire's Founder and CEO, Dean Mintz, expressed satisfaction with the company's Q3 FY24 performance, highlighting the continuous strength in sales revenue, active customer growth, and conversion to profit. He emphasized the company's rapid market penetration across its global footprint and the constructive market conditions. Mr. Mintz also noted the significant progress made in entering the mainland China market, marking a strategic milestone for Cettire as it aims to establish itself as a leading global luxury platform. Furthermore, he mentioned the company's focus on traffic quality, resulting in a notable year-on-year improvement in conversion rate and an uplift in average order values.

Summary of Q3 FY24 Trading Update and Outlook

Cettire's Q3 FY24 trading update reflects substantial growth in sales revenue, active customer base, and profitability, with an adjusted EBITDA of approximately $6.0 million and a delivered margin exceeding 20%. The company's low double-digit percentage marketing investment relative to sales revenue has contributed to its profitable growth. With a net cash balance of approximately $90 million and a strong improvement in year-on-year profit trends, Cettire remains focused on maximizing revenue growth while delivering profitability and cash generation. The confirmation of the China market launch in Q4 FY24 signifies a strategic move to further establish Cettire as a leading global luxury platform. The company's continued strong growth in available inventory and its registration for sales taxes in the majority of US states demonstrate its commitment to sustainable expansion and compliance. Cettire's outlook appears optimistic, supported by its well-positioned status for Q4, growing supply, and resilient demand, indicating a positive trajectory for the company's global luxury online platform.