The Cettire Ltd (ASX: CTT) share price has taken off on Tuesday morning.
At the time of writing, the luxury fashion online retailer's shares are up 17% to 98 cents.
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Why is the Cettire share price shooting higher?
Investors have been bidding the Cettire share price higher after the company released an update on its performance during the first quarter.
The good news for shareholders is that rising living costs and recession concerns haven't yet impacted Cettire's sales.
According to the release, the company's gross revenue grew 62% over the prior corresponding period to $84.4 million during the quarter.
This was driven by the year over year doubling of its active customers to 287,626 (up 10.5% since the end of FY 2022) and improvements in repeat customer spending, which was partially offset by a lower average order value.
Another positive for the Farfetch rival was that its operating earnings were in positive territory during the quarter. Cettire reported adjusted EBITDA of $5.5 million, on a delivered margin greater than 20%.
It also revealed that its marketing investment (including brand investment) decreased to low double-digits as a percentage of sales revenue.
Cettire's CEO, Dean Mintz, commented:
Cettire continues to demonstrate strong progress on its strategy to grow penetration of the large global personal luxury goods market. Our marketing initiatives and commercial offering are resonating with customers and we observed an acceleration in revenue and AOV growth into the quarter end, providing confidence in our Q2 outlook. The demand environment remains healthy and our quarterly performance also serves to highlight the attractiveness and resilience (to economic challenges) of the global luxury consumer.
Q1 is traditionally a seasonal low point for the business. The strong profit result highlights the advantages of our proprietary software-driven automation and the uniqueness of our business model, benefiting from a highly flexible cost base, low overheads and minimal inventory exposure. Further, our profitability and supportive working capital dynamics translated into positive quarterly cash flow.
