Online luxury retail Cettire continued to grow and expand in FY22, the company disclosed in its first-half results.
In the statement, the Melbourne-based eTailer attributed its strong results to its investment in brand building, customer acquisition and subsequent technology development.
For the first half of FY22, Cettire said its gross revenue increased 192% to $154.1 million from $52.7 million in the first half of FY21.
Revenue also increased during the period, with Cettire reporting an increase of 181% to $113.7 million ($40.5 million in the first half of FY21).
During the period, Cettire’s active customer base increased by 208% to 209,000 (68,000: H1 FY21), with repeat customers accounting for 46% of gross revenue (34%: H1 FY21).
The eTailer also saw 23.6 million unique visits to its website during the half, a 304% increase from the 5.8 million it had in the first half of FY21.
However, despite these strong results, the company was unable to post a profit for the period.
Cettire recorded an operating loss of $9.9 million compared to an EBITDA of $4.8 million in the first half of FY21, and a net loss after tax of $8.3 million compared to compared to a profit of $2.3 million in the first half of FY21
Despite this, Cettire Founder, CEO and Executive Director Dean Mintz said the company was excited about its future, given the strength of its growth strategy.
“Many themes from our FY21 results continued through the first half of FY22.
“Cettire has once again experienced very rapid growth, significantly increasing the number of unique visitors and active customers, further increasing the proportion of revenue from repeat customers and overall continuing its growth trajectory.
“At a time when many retailers, both online and physical, have seen their revenues decline as COVID restrictions ease, Cettire has continued to deliver exceptional revenue growth given the high level of engagement from customers, the scalability of our light capital, high cash flow generating business model and the consequent benefits of our proprietary technology platform.
“The financial results achieved in the first half of FY22 demonstrate the substantial progress we have made in executing our growth strategy.
“A number of significant improvements have been implemented in our consumer offering, including deeper localization, enabled by our proprietary e-commerce storefront solution, and investment in our brand,” he said. he continued.
“What excites us is that Cettire is just getting started and is in the early stages of its growth journey.
“The track ahead of us is large and we will continue to invest to seize the significant market opportunity we see for the business,” he said.
Other company highlights include a 178% increase in revenue margin to $42.7 million from $15.4 million in the first half of FY21.
The business continued to generate strong growth in cash flow from operations, which increased by 43% to $12.3m (H1 FY21: $8.6m) during the six months.
This cash flow was partially reinvested in brand marketing to increase awareness of the Cettire brand and support long-term growth.
As of December 31, 2021, Cettire had a cash balance of $55.5 million and no debt.
According to the company, 80% of its customers access the site via the mobile web. The upcoming launch of Cettire mobile applications will therefore capitalize on this opportunity.
Additionally, Cettire is set to launch a beauty category, to support its mission to become the world’s leading online luxury destination.
Mintz added that he is moving full steam ahead for the company in the second half of FY22, having kicked off the half with unaudited gross revenue growing 242% in January 2021.
“Cettire has huge growth opportunities in markets where we have always been strong and had a localized proposition, such as the US, UK and Australia.
“In addition, we have begun to unlock the growth opportunity in several high-value luxury goods markets, where we already have services, due to the migration of traffic to our proprietary storefront, which supports content. , currencies and localized payment options.
“Our growth trajectory continued into H2 FY22, where we experienced a further acceleration in our growth rate in January.
“Given the global growth opportunity presented to Cettire, we will lead the business to maximize revenues by investing more in brand and customer acquisition to drive long-term shareholder value.
“Our focus for the remainder of FY22 is to continue to enhance our customer proposition which is centered around our wide selection of luxury, value and fast turnaround products, while continuing to develop our deep supply relationships. and diversified businesses and investing in our world-class proprietary e-commerce technology that can be quickly scaled to support entry into new products and geographic markets,” he said.
Cettire held an investor call at 10:30 a.m. this morning to detail the results.
Cettire was founded in 2017 and has a catalog of more than 1,700 luxury brands and more than 200,000 products of clothing, shoes, bags and accessories.