Cettire (CTT) H2 2024 earnings summary

Executive summary

• Sales revenue grew 78% year-over-year to $742.3 million, with gross revenue up 81% to $978.3 million, driven by a 64% increase in active customers and strong order growth.

• Active customers reached nearly 700,000, with 61% of gross revenue from repeat customers and over 1 million annual orders processed.

• Net profit after tax declined 34% to $10.5 million, impacted by increased promotional activity and higher refund rates in a softer luxury goods market.

• Maintained a self-funding, capital-light, debt-free model with a net cash position of $79 million, up from $46 million last year.

• Expanded presence in both established and emerging markets, including launching a domestic China platform and enhancing organisational capabilities.

Financial highlights

• Adjusted EBITDA reached $32.5 million with a 4.4% margin, while statutory NPAT was $10.5 million and Adjusted NPAT was $18.2 million.

• Delivered margin was 20.9%–21% of sales, reflecting a more promotional environment and higher refund rates.

• Paid acquisition cost as a percentage of sales rose to 9.5% due to aggressive marketing.

• Operating cash flow increased to $63 million, and cash and cash equivalents stood at $79 million with zero financial debt.

• Average order value increased to $798, and refund rate rose to 24.1% from 22.8% year-over-year.

Outlook and guidance

• FY 2025 will emphasize profitability over growth, with Q1 sales up ~20% year-over-year and expectations for a profitable quarter.

• Marketing investment in Q1 is expected to be lower than FY 2024, with sequential improvement in delivered margin anticipated.

• Strategic priorities include profitable growth, continued global expansion, localisation, and enhanced organisational capability.