Luxury online platform Cettire has made additional financial disclosures amid a grilling from the Australian Stock Exchange late last month.
The Australian business has now confirmed that its FY24 gross revenue is up by more than 80 per cent on last year to around $975-980 million. This is more than its 77 per cent to 79 per cent prediction on June 24, and that is a lift of more than $200 million.
Cettire’s average order value is also up by 6 to 7 per cent to around $795 to $800, with 692,287 active customers - also up on last year by 64 per cent.
Meanwhile, its gross revenue from repeat customers is at 61 per cent, up by 3 percentage points.
The new disclosures come just weeks after the luxury platform responded to a letter from the ASX regarding compliance issues.
The June 28 letter from Cettire was in response to the materiality of key guidance metrics that were not disclosed in its last trading update on June 24 - namely those metrics listed above.
When asked whether they were material - with ASX highlighting that these metrics were disclosed in Q1 and Q3 - Cettire claimed they weren’t as those the Q1 and Q3 updates were reported on after the quarter ended.
“The inclusion of those historical metrics in the Q1 and Q3 updates was for general background and information for investors as part of the overall historical information presentation for the relevant quarter, not necessarily because they were considered individually material,” Cettire wrote.
“The FY24 Update, on the other hand, was issued before the end of Q4, when actual Q4 data was not (and is not) yet available. Cettire released the FY24 Update to comply with its continuous disclosure obligations, and in particular to take into account ASX’s guidance in Guidance Note 8 regarding earnings surprises, because it had become apparent that Adjusted EBTIDA for FY24 was likely to come in below consensus broker estimates (even though sales revenue was not necessarily expected to be materially below consensus broker estimates).
“Cettire has not provided advance guidance on these metrics previously, only historical information. It was not considered necessary or appropriate for continuous disclosure purposes to start providing advance guidance on these metrics in the FY24 Update.”
When asked to provide best estimates for these metrics, Cettire only provided metrics for its expected gross margin on the full-year basis, which was projected to be in the range of 20.4 per cent to 21.1 per cent.
Following the new update today, Cettire has still not provided data on fourth quarter metrics, despite sharing in its last trading update on June 24 that the operating environment within global online luxury space “has become more challenging”.
“Multiple listed luxury businesses have described softening demand trends and increased promotional activity (over and above the typical seasonal promotions), leading to a tougher margin environment,” Cettire had shared. “Cettire’s financial performance during Q4 FY24 to-date has also been impacted by these developments.”
The ASX had questioned Cettire on this, asking for further information to support these statements, and the luxury platform responded citing five media articles globally. It also added that a number of brokers and analysts globally have also downgraded forecasts for listed companies in the luxury goods industry.
When asked if Cettire is complying with ASX listing rules, the luxury platform confirmed it was.