Australian-born luxury etailer Cettire has reported an 81 per cent lift in gross revenue to $978.3 million for FY24. The global online platform also reported a sales revenue boost of 78 per cent for FY24 to $742.3 million.
According to Cettire, its gross revenue represents revenue net of GST/VAT/sales taxes but is before refunds to customers.
Amid the massive sales boom, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) lifted just $3.2 million to $32.5 million, while statutory net profit after tax (NPAT) hit $10.5 million - down from $15.9 million in FY23.
“It’s pleasing to have delivered another strong performance in FY24,” Cettire founder and CEO Dean Mintz said. “Our relentless focus on strategic growth and operational excellence resulted in considerable year-on-year growth in active customers, sales revenue, adjusted EBITDA and cash.
“We have continued to grow our share of the global online luxury goods market and are extremely pleased with our strengthened position at the end of FY24.
“Not only did approximately 270,000 net new customers purchase from the platform during the year, but existing customers, on average, purchased more and spent more per order, demonstrating the growing loyalty of our customer base.
Other key growth metrics include a 64 per cent lift in active customers to approximately 692,000 users, with repeat customers accounting for 61 per cent of gross revenue, up three percentage points from FY23.
Cettire also recorded a delivered margin increase of 62 per cent to $155 million, representing 21 per cent of sales revenue.
Looking into 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’s 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 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.”