Already fully valued ?, page-124

While all the discretionary retail sector is under pressure, interesting to remind Cettire's case looking at the main elements which drive the profit :

- revenues : while discretionary consumption is under pressure, Cettire continues to show a unique profile of triple digit organic growth, explained by the growth of the global luxury sector, the online segment taking more market shares and the still tiny market share of Cettire,

- gross margin : because of the pressure on sales, a lot of retailers have now to accept to lower their gross margin, while Cettire keeps increasing it.
One element which may become a key differentiation with other retailers is the strength of the USD vs AUD.
It should impact negatively most retailers, which are importing their products.
In the case of Cettire, it is more the opposite as I suspect they mainly sell in USD and so benefit from the increase of USD.

- cost of doing business : Cettire had always a very low cost basis, so cost of doing business has never been a problem for them, while a lot of retailers face now a situation where wages are increasing, while they struggle to grow their top line.

Interesting also to see that Cettire's success is not explained by the fact that it is an e-commerce company, looking at how the other listed ecommerce companies in Australia are struggling.
Not to mention the case of Farfetch, which again disappointed with its results today (large miss on revenues) which explains why the stock is down by 35 % after hours.