The surging Cettire (ASX:CTT) share price means the company is now bigger than Kogan

The Cettire share price has been rallying, sending the company closer to the top of its segment.

| More on:
A happy shopper with lots of bright shopping bags, indicating a positive surge for ASX retail share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Online luxury goods retailer, Cettire Ltd (ASX: CTT) now sports a market capitalisation larger than that of affordable online retailing megalith Kogan.com Ltd (ASX: KGN). Following its share price's recent rally, Cettire, which doesn't hold any inventory, has a market capitalisation of around $1.2 billion.

For comparison, Kogan, which faced a slug of inventory issues in financial year 2021, has a market capitalisation of approximately $1.1 billion.

Over the last month, the Cettire share price has gained a massive 41%. Right now, its share price is $3.17, 2.9% lower than its previous close.

Let's take a look at what's been driving Cettire on the ASX lately.

The Cettire share price's incredible run

The Cettire share price is having a great month on the ASX, with its sights set on boosting its value even more.

Right now, the Cettire share price represents 532% more than its prospectus' offer price of 50 cents per security. The company's Initial Public Offering (IPO) occurred on 17 December 2020.

Additionally astounding, is that under Cettire's prospectus' offer price, it expected a market capitalisation of around $190 million.

The company has seemingly made bank from the luxury goods market. However, it doesn't hold any of its own inventory and doesn't liaise with big-name fashion houses.

Instead, Cettire sources products from a diversified network of suppliers that ship directly to customers. It often has multiple suppliers for single products.

Over financial year 2021, the results of which the company announced on 31 August, Cettire's sales revenue increased by 304%. At the end of the 12-month period, it had around 200,000 products from 1,700 brands on its online store.

Potentially continuing to drive the Cettire share price, is the company's positive outlook for financial year 2022.

It plans to launch a children's wear segment, invest in its marketing, increase the number of products available on its platform, and build on and improve its technology to provide positive customer experiences.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retail Shares

Happy shopper at a clothes shop.
Retail Shares

The share price of this All Ords stock has jumped higher again. Here's why

Here's why Myer's share price is outperforming.

Read more »

A smiling woman at a hardware shop selects paint colours from a wall display.
Retail Shares

Wesfarmers shares recently hit a 52-week high. Can they go higher?

This business continues to impress investors.

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
Retail Shares

Would Warren Buffett buy Lovisa shares right now?

Is this a sparkly opportunity?

Read more »

Happy shopper at a clothes shop.
Earnings Results

Why did Myer shares just rocket 9%?

Investors are piling into Myer shares on Friday. But why?

Read more »

a thoughtful shopper with shopping bags wearing sparkly gold dress and matching shoes reclines on a chair with hand to chin in thought.
Retail Shares

Can Lovisa's new high profile CEO take Lovisa shares to new heights?

Is Lovisa about to embark on a new era of growth?

Read more »

A woman sits on sofa pondering a question.
Retail Shares

After soaring 244% in 5 years, how much further upside does Macquarie tip for Nick Scali shares?

The broker's expectations remain steady.

Read more »

Girl with make up and jewellery posing.
Retail Shares

Buying the dip: $5,000 invested in Lovisa shares a month ago is now worth…

It's been an outstanding first month for new Lovisa shareholders.

Read more »

Woman checking out new iPads.
Retail Shares

JB Hi-Fi share price sinks on sales growth figures

JB Hi-Fi shares are under pressure on Wednesday. But why?

Read more »