The online luxury goods retailer’s share price has been soaring lately. We look at why…
The post Cettire (ASX:CTT) share price leaps another 7%, up 82% in a month appeared first on The Motley Fool Australia. –
The Cettire Ltd (ASX: CTT) share price is soaring again today despite no news having been released by the company.
The Cettire share price has gained another 6.61% today to trade at $3.87. That leaves it 81.69% higher than it was this time last month.
Let’s take a look at what’s driving the ASX newbie’s stock higher lately.
What is Cettire?
If you’re not familiar with Cettire, it’s an online luxury goods retailer.
As my Foolish colleague recently reported, the company is reportedly backed by some of Australia’s richest individuals.
Interestingly, Cettire doesn’t hold its own inventory. Instead, most goods sold on its platform are shipped directly from Cettire’s suppliers.
Cettire listed on the ASX in December 2020. Under its prospectus, shares in the company were offered for 50 cents apiece.
What’s driving the Cettire share price higher?
That, dear market watcher, is a good question.
Cettire hasn’t released any price-sensitive news to the ASX since its financial year 2021 earnings.
Over financial year 2021, Cettire’s gross revenue quadrupled to outperform its guidance by 40%.
However, Cettire’s net profit after tax dropped to a $251,000 loss for financial year 2021. The previous financial year, the company reported a $1.5 million after-tax profit.
The Cettire share price gained 2.7% on the back of its results and another 49% since.
Additionally, the company announced it had migrated its e-commerce storefront from a third-party platform to its own software last month.
According to Cettire, the change will increase the site’s performance, flexibility, and functionality.
Cettire’s Founder and CEO Dean Mintz commented the software will support its rapidly growing customer base, product offerings, and suppliers.
And, indeed, the company’s business is certainly growing in all the above metrics. Further, the Cettire share price might be getting a boost from the company’s impressive growth.
In financial year 2021, the number of active customers shopping on Cettire increased by 285% with 40% of the company’s revenue coming from repeat customers. In addition, Cettire added 78,000 new products to its site, bringing its total number of purchasable products to more than 190,000 from 1,700 brands.
Should you invest $1,000 in Cettire right now?
Before you consider Cettire, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cettire wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
Cettire (ASX:CTT) share price leaps another 14%, up 66% in a month. Here’s why
Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher
The surging Cettire (ASX:CTT) share price means the company is now bigger than Kogan
These three ASX retail shares delivered double (and triple!) digit returns in 2021
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.