The founder of luxury fashion platform Cettire has acquired 11.4 million shares in his own company, representing 3 per cent of the shares outstanding, through on-market purchases.
The total consideration paid was approximately $15.8 million, with Dean Mintz, who is also the business’ CEO, now owning around a third of the company.
This comes after the luxury platform recorded a 81 per cent lift in gross revenue to $978.3 million for FY24, with gross profit up to $155 million.
Despite the massive sales lift, Cettire recorded a drop in its statutory net profit after tax (NPAT), which fell $5 million to $10.5 million.
According to its preliminary final report, Cettire had doubled its advertising expenses to $75 million, while merchant fees and administration expenses lifted to over $20 million each.
“We are relentlessly focussed on driving profitable revenue growth, expanding our global footprint, remaining self-funding and executing Cettire’s growth strategy,” Mintz said.
“I believe we are well placed to deliver profitable growth in FY25 and beyond.”
In the first two months of FY25, Cettire reported a continued softening of trading in the global luxury sector.
“Increased promotional activity remains prevalent as the remaining inventory from the Spring Summer 2024 season cycles through the system,” the luxury platform reported.
“Clearance sales activity by participants in the online segment exiting parts of the market continued in July.”
Cettire expects sales for the first quarter of FY25, ending September 30, to lift by 20 per cent year-on-year.
The platform is also reporting an improved refund rate in the new year, with lower marketing spend as percentage of sales revenue compared with FY24.
“Our focus in the near term is to increase emphasis on profitability over growth, particularly while market conditions remain soft,” Mintz said. “Longer term, we see the strong fundamentals of the growing US$400 billion luxury market and its ongoing structural shift to online, providing Cettire with significant runway to scale the business.
“Cettire has flexibility to adjust operating settings to varying market conditions. Cettire’s ability to leverage its highly competitive business model has seen sales revenue organically grow 30 times in the past five years, while generating cash and profit in four of the last five years, with zero financial debt.
“This proven track record, along with Cettire’s large and diverse supply chain, global customer footprint and minimal inventory risk, provides great confidence in our ability to adjust quickly to varying market conditions and changes to localised demand.
“Given the resilience and flexibility of its business model, Cettire is equipped to capitalise on the significant opportunity in today’s online luxury sector and well positioned to deliver long term value to shareholders and all of its stakeholders.”