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CTT - Cettire Limited

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Cettire is a global online retailer, offering a large selection of in‑demand personal luxury goods via its website, cettire.com. The Company's extensive catalogue of over 1,300 luxury brands and over 160,000 products of clothing, shoes, bags and accessories is supported by a large, diversified network of suppliers.

The Company has developed a proprietary technology platform that is designed to:
  1. seamlessly integrate with its suppliers to manage and largely automate real time product and inventory management;
  2. enable dynamic pricing strategies to optimise volume and margin; and
  3. largely automate customer order fulfilment and global logistics.
Since launching in 2017, Cettire has facilitated more than 83,887 purchases by 62,567 customers from 53 countries. Cettire has a strong track record of driving growth, achieving compound annual revenue growth from FY2018 to FY2020 of over 547%. Cettire generated $22.9 million in sales revenue in FY2020, has been profitable from commercial launch, and has not required external equity or financial debt to fund its rapid growth.

It is anticipated that CTT will list on the ASX during December 2020.

CETTIRE Limited – Investor Relations

cettirecorporate.com cettirecorporate.com
 
Since listing CTT has doubled it's initial opening price and demand has remained strong.

I bought the BO but placed a wide iSL to give it room to move. It wasn't required as buyers were all over it at the close and again this morning. The MD is very skewed on the bid with little supply showing on the ask.

ctt1203.PNG
 
pushing to $2.10 this morning

Maybe there is a 'better model' or maybe I am missing something, but something has to give.

Statement 1. Cettire is trading at an eye-watering multiple of more than 400 times forward earnings, a massive premium to local pure-plays such as Kogan, Adore Beauty and Temple & Webster (all of which are getting shellacked).

Statement 2. Cettire’s proprietary technology allows it to largely automate product management, pricing, customer acquisition and order fulfilment.

Statement 3. Like Temple & Webster, Cettire has a drop-ship model, which means orders are sent from third-party suppliers directly to customers and it does not hold the stock.

Statement 4. Rapid growth in active customers (up 319 per cent in the December half), who spend on average about $750, its exposure to multiple international markets (overseas sales account for more than 90 per cent of revenue) and its low-cost, low capital and highly scalable business model.

Statement 5. Online retailer Kogan.com has slashed its outlook pointing to its rapid growth during the past year which resulted in supply chain issues, miscalculation of inventory and higher warehousing costs
 
Crazy times, speculators fuelling a bonfire. Its a rag shop, once the pent up Covid madness abates this thing goes back to a normal multiple for a shop.
 
It is usually a good idea to understand the business, if investing in it. As @galumay states, its a rag shop, if a modern iteration, all algorithms and light on capital. But is it even that? Mainly, it appears to have built an online customer database and uses organic search and Google ad-words to rank highly when shoppers searched for luxury fashion.

As an online fashion emporium, it sells about 1300 designer brands such as Prada, Gucci, Saint Laurent, Balenciaga, Burberry and Valentino and Australian designer brands such as Zimmermann. But now questions are asked about the supply chain and use of third parties (with the implied question mark hanging over provenance/ authenticity).

Those who have 'lifted the bonnet' have found that Cettire has no direct relationship with brand owners. Rather, fund managers said it bought stock from third-party suppliers and wholesalers, "some of whom operated in the grey market or parallel import market". Being integrated into these wholesalers around the world, especially China, means pricing can be significantly cheaper than for the same branded goods. But these relationships can crumble if/ when the designers and owners assert control of their brands.

Additionally, part of the attraction of discounting comes from transnational pricing; most of its customers (64 per cent) are in the US, according to its prospectus. Cettire can sell European designer fashion without 20 per cent value added tax (VAT) and, if US orders are below $US800, free of import duties.

Cettire’s claim a “unique proprietary platform” has enabled it to largely automate product management, pricing, customer acquisition and order fulfilment, but others say the company used a widely available Shopify platform.
 
Pause in Trading; Interesting, coming so soon after the recent AFR article referenced by @Dona Ferentes .

P/E approx 800 !

This business is ripe for a short seller attack (providing their report doesn't contain emotional descriptors - ASIC request).
 
This little show pony still kicking goals before lunch

The Company delivered exceptional growth, significantly outperforming FY21 Prospectus forecasts and upgraded guidance.
FY21 highlights (vs FY20):
• Reported gross revenue up 333% to $124.5 million; up 384% on a constant currency basis
• Reported sales revenue up 304% to $92.4 million; up 352% on a constant currency basis
• Active customers up 285% to 114,830
• 40% of gross revenue from repeat customers (FY20: 26%)
• Reported product margin of 37% and delivered margin of 24%
• Adjusted EBITDA of $2.1 million
• Statutory NPAT of $(0.3) million
• Operating cash flow up 131% to $12.7 million
• Strong balance sheet, with $47.1 million cash and zero debt
• Launch of proprietary e-commerce storefront
• Commencement of direct partnerships with brand owners
 
Hi everyone first post! Anyone know what’s happened to this one? I thought the AGM announcement was good but has gone down hill ever since.
 
AlanBond said:
Hi everyone first post! Anyone know what’s happened to this one? I thought the AGM announcement was good but has gone down hill ever since.
Click to expand...

Others will have a different take, but this was my thoughts months ago,

galumay said:
Crazy times, speculators fuelling a bonfire. Its a rag shop, once the pent up Covid madness abates this thing goes back to a normal multiple for a shop.
Click to expand...

Its another case of rampant narrative speculation IMO.
 
Thanks for the reply but website stats tell a different story. Agree It looks to have gotten a bit ahead of itself on price but it’s definitely not a candle shop :)
 
Website stats are not a financial metric! Basically with something like CTT you are just narrative speculating, its a new business, currently loss making, no meaningful historical financial data and there is nothing fundamental to support the current or historical pricing. This means share price is almost totally dependent on speculator sentiment.

The biggest negative impact on price IMO has been the growing scepticism about the narrative around the relationship between CTT and luxury brands and its claim of a "unique proprietary platform".
 
and down, down. Now at $1.40 and is there any reason to think the selling has stopped?

Cettire founder and boss Dean Mintz sold 35 million shares in the company, equivalent to a 9.2 per cent stake, after the applicable escrow period expired. He secured $1.35 a share in the sale, and retains a personal holding of 56.7 per cent which he has pledged to hold until Cettire's full-year results for financial 2022. Cettire opened at $1.50, down 3 per cent.

“The sale enables greater trading liquidity and a broadening of the share register,” Mr Mintz said. “I remain fully committed to continuing to lead the company to grow shareholder value.”
Click to expand...
 
Dona Ferentes said:
and down, down. Now at $1.40 and is there any reason to think the selling has stopped?.
Click to expand...
and , the short answer, is NO. Now 73c. ($4.70 last Nov) ..Another e commerce outfit grappling with relevancy? And margins/ costs?

In the March Quarterly out today, Cettire grew revenues by 178 per cent to $70 million in the March quarter compared to the same period a year ago.
The company has launched a mobile app to help funnel more customers to its website and take advantage of the fact its web traffic is 80 per cent linked to mobile devices.
The number of orders sold on the platform jumped 173 per cent to just shy of 100,000, compared to the 36,000 achieved in the March quarter last year.
 
CTT on fire this month, up from 70c to $1.80. Is it now in overbought territory and due for a retrace? It's run very hard very fast and in very turbulent market conditions.

An updated trading performance update announced on 11 October has stimulated investor interest, especially given the strong performance in a slowing economy. Can this level of growth continue into CY 2023?

CTT251022.png
 
Anyone following this one, was picked by one of my syatem.
I will take it for November pick
 

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Founder Dean Mintz is selling a $60 million stake in the online shopping platform owner on Thursday night.

Stockbroker Barrenjoey offer 41.1 million shares to fund managers at $1.46 a share.

( and that may nip any recovery in the bud?)
 
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