Cettire founder $60m richer after earnings update
Investors piled into online retailer Cettire, pushing up the stock by 12 per cent on Thursday, after founder and chief executive Dean Mintz flagged the positive momentum from 2023 has continued into the new financial year with luxury shoppers still spending.
The Young Rich Lister told shareholders the company is laser-focused on maximising profitable revenue growth, while also self-funding. He added that China – the world’s largest luxury market – continues to represent a significant opportunity for the high-end fashion retail platform.
The paper wealth of Cettire founder and CEO Dean Mintz grew $60 million in the stock’s rally on Thursday. AFR
Investors liked the news, pushing the stock up as much as 18 per cent before it settled up 34¢ at $3.14 on Thursday. Mr Mintz’ personal stake of 45.94 per cent rallied $60 million – boosting his paper wealth to $550 million.
Shoppers are spending on luxury after Cettire’s full-year 2023 revenue doubled to $416.2 million; while adjusted EBITDA of $29.3 million was a huge $50.8 million gain on the prior period. Its bottom-line profit reached $16 million from a loss of $19 million the year before.
Cettire does not own any inventory but acts as a drop shipper selling Gucci bags, Dolce & Gabbana jeans and Jimmy Choo shoes. It added more than 160,000 active customers (those who have purchased in the past 12 months), while reducing customer acquisition costs by 30 per cent year-on-year to $96. Cettire generates most sales from the US, followed by Australia and the UK. It has a logistics presence in 50 emerging markets.
“We are pleased by the early trading in FY24, with all our key markets performing strongly. Cettire is well positioned for another strong year of growth and profitability.
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