Dean Mintz, CEO and founder of luxury fashion platform Cettire, has acquired 11.4 million shares in his company through on-market purchases, representing 3% of the shares outstanding.
The total consideration for this acquisition was approximately $15.8 million, increasing Mintz’s ownership stake to roughly one-third of the company.
The move comes on the heels of Cettire's impressive FY24 financial performance, which saw an 81% increase in gross revenue to $978.3 million, with gross profit rising to $155 million.
Despite this substantial revenue boost, the company experienced a decline in statutory net profit after tax, which fell by $5 million to $10.5 million.
The preliminary final report reveals that Cettire doubled its advertising expenses to $75 million and saw merchant fees and administrative expenses each exceed $20 million.
Mintz emphasized the company's commitment to profitable revenue growth and global expansion.
"We are relentlessly focused on driving profitable revenue growth, expanding our global footprint, remaining self-funding, and executing Cettire’s growth strategy," Mintz said. "I believe we are well placed to deliver profitable growth in FY25 and beyond."
In the early months of FY25, Cettire noted a continued softening in the global luxury sector, with increased promotional activity and clearance sales impacting market dynamics.
The company reported that sales for the first quarter of FY25, ending September 30, are expected to rise by 20% year-on-year.
Additionally, Cettire is seeing improvements in its refund rate and a reduction in marketing spend as a percentage of sales revenue compared to FY24.
Mintz highlighted the company's focus on profitability over growth amid current market conditions, while also underscoring the strong fundamentals of the $400 billion luxury market.
"The resilience and flexibility of our business model position Cettire to capitalise on the significant opportunities in the online luxury sector," Mintz said.
"Our proven track record, extensive supply chain, and global customer base give us confidence in our ability to adapt quickly to market changes and deliver long-term value to our shareholders and stakeholders."
At the time of reporting, Cettire's share price was $1.39.