Cettire margins under expectations
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More news: While Cettire’s growth metrics are tracking above RBC Capital Markets’ growth metrics expectations, the company’s Q3 margins were below analyst expectations.
RBC analysts said Cettire’s active customers, gross revenue and sales revenue were tracking above RBC expectations for 2H24. During 3Q24, active customers were up 83.7% compared to the previous corresponding period, while gross revenue was up 94.8% and sales revenue up 88.2%.
While Cettire achieved an underlying EBITDA margin of 6% during the first nine months of FY24, broadly in line with RBC analyst and consensus expectations of 6.2% for FY24, it posted a lower than expected 3Q margin at 3.1%.
RBC analysts are expecting a 4Q24 margin of 7.1% and a FY24 margin of 6.2%.
Cettire shares were trading 3.88% lower to $3.22 by 2:36pm AEDT.
Cettire slumps despite strong sales and China launch announcement
The news: Cettire shares slumped despite the ecommerce platform reporting strong sales growth figures for the March quarter and confirming the timeline for its long-anticipated launch into China.
Shares were down 5.7% to $3.16 by 12:10pm AEDT.
Cettire reveals its China launch is imminent
The news: Cettire has told the market that its long-anticipated launch into China will happen by the end of the financial year as the ecommerce platform posted its quarterly earnings.
The numbers: The unaudited quarterly earnings showed gross revenue almost doubled last quarter to $256.7 million. Quarterly sales grew strongly to hit $191 million while active customers surpassed 644,000.
The context: Cettire has faced heavy scrutiny in recent months with its launch into China, flagged since 2022, remaining one of the most anticipated developments for the company.
The luxury grey market platform has faced recent questions over how it deals with sales tax in the US and duties payable on deliveries to customers.
Addressing the sales tax issue in its results on Friday, Cettire confirmed it was registered "in the vast majority of US states which have a sales tax regime".
What they said: "In the nine months to 31 March 2024, the company collected approximately $18.7 million in US sales taxes. Total remittances of US sales taxes during the period were $17.1 million, with the $1.6 million difference resulting in an increase in the payables balance at period end to $3.1 million," the company said, noting the figures were unaudited.
The source: ASX announcement
