You’d have to hope someone made good coin on Tuesday and Wednesday, when online luxury retailer Cettire’s share price on the ASX skyrocketed 75%, from $1.34 to $2.35.
Whether it was investors wanting to get something back on stock that was trading at about $4.90 in February, or day traders scarpering with quick loot, the volume went through the roof, and then fell just as quickly back to terra firma.
The trading volumes on Friday September 20 (5.4 million shares) and Monday September 23 (two million) were followed by a hive of activity triggered by the release of annual results at 9:11am on Tuesday (September 24) when volume traded for the day was 23 million shares.
Cettire ASX – past month.
On Wednesday (September 25) the volume was down to 6.5 million, and the stock peaked at $2.35 per share, up from $1.34 two days earlier. This represented an eye-watering 75% jump for any magician who managed to buy at the bottom and sell at the top.
By close of play Wednesday the stock was at $2.20.
It opened today (September 26) at $2.17, dipped to $1.85, peaked at $2.21, and with two hours before close was trading around $1.90, representing a fall of 13% for the session, and 19% off the Wednesday peak. Volume was at 4.7 million.
Cettire ASX – past five days.
Whatever the ups and downs, it’s been a good week for Cettire, which sells high-end products from over 500 designers, including Valentino, Alexander McQueen, Off-White, Prada, Balenciaga, Bottega Veneta, Saint Lauren, Christian Louboutin, Dolce & Gabbana, Fendi and Gucci.
The annual results showed Cettire had 692,000 active customers and 78% sales revenue growth (up to $742 million), and 61% gross revenue from repeat customers.
“This performance was consistent across the first three quarters of the financial year, with the first half the strongest half ever for Cettire,” said Kerry Robert (Bob) East, Chairman and Non‑Executive Director.
Cettire ASX since 2012.
“The final quarter of the year was impacted by factors including softening demand trends in the luxury sector and unprecedented clearance sales activity, in part impacted by the exit from the market of certain participants.”
He said a major strategic milestone was achieved during FY24, with Cettire launching its domestic China platform: “China is the largest luxury market in the world and the launch represents an important initial step towards participating in that opportunity.”
The company had adjusted EBITDA of $32.5 million compared with $29.3 million in FY23.
Net profit after tax was $10.5 million, down from $16 million in FY23. However investors are clearly speculating on potential, not profit.
Active customers increased by 64% year-on-year, and the average order value rose 7% to $798.
