$Cettire Ltd (CTT.AU)$ shares jumped 60.15% on Tuesday, with trading volume expanding to A$33.89 million within the first three hours of trading. Cettire has fallen 30% year-to-date. The company released its unaudited financial results for FY24 at the end of August, and its stock price fell by 20% that day. Today, Cettire's annual report shows that Grant Thornton supports Cettire's viewpoint, as the firm has investigated revenue recognition, customs and import duties, and intangible assets, giving the company high praise.

Cettire technical analysis chart

Technical Analysis

• Support: A$1.38

• Resistance: A$2.36

• Price range A$1.38 to A$2.36: The trading range indicates a low level of locked-in positions with minimal resistance to upward movement and strong buying interest, suggesting strong upward momentum. The stock price is currently in a bottoming area and has started to rebound after finding support near A$1.38. It previously touched around near A$2.36, creating some resistance to further gains. It will be important to monitor whether the support near A$1.38 remains valid and whether the resistance near A$2.36 can be effectively breached in subsequent price action.

Market News

Cettire released its 2024 annual report and announced the appointment of Caroline Elliott as an independent Non-Executive director of the company who joins the Board with immediate effect. The company performed extremely well across its key financial metrics:

• Sales revenue increased by 78% to $742.3 million;

• Adjusted EBITDA of $32.5 million compared with $29.3 million in FY23;

• Net profit after tax of $10.5 million compared with $16.0 million in FY23.

Cettire’s expanded market share is evident with the following metrics:

• Active customers increased to 692,287, up 64% on FY23;

• Average Order Value increased to $798, up 7% on FY23;

• Gross revenue from repeat customers was 61% compared to 58% in FY23.

This performance was consistent across the first three quarters of the financial year, with the first half the strongest half ever for Cettire. In FY24, Cettire’s diverse supply chain demonstrated continued growth, providing its ~700,000 active customers with an expansive and enviable selection of online luxury goods.

Overall Analysis

Fundamentally, focus on the company's performance and operational status. Technically, pay attention to whether the support levels hold and if the resistance levels can be effectively breached.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.

Source: Cettire