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Luxury online fashion retailer Cettire Limited (ASX:CTT) reported first half results for FY23 today, however investors are selling out of the company’s shares following the release of the results.

For the first half, Cettire posted gross revenue up 57% on the PCP to $242.7 million, sales revenue up 65% to $187.7 million, adjusted EBITD of $16.7 million, delivered margin of 25.1%, ended the half with $53.3 million net cash balance and boasts 50% growth in active customers over the half to more than 303,000. Average order value also jumped 7% to $759 from $712 in the prior corresponding period.

Cettire also noted gross revenue from repeat customers was 56%, compared to 46% in the prior corresponding period which is strong growth in this high interest rate, high inflation environment.

The luxury online retailer posted solid growth results for the first half despite the tough market conditions with retail spend declining by 3.9% in December as consumers shift their financial priorities and begin saving amid the rising interest rate environment.

Most notably, the company delivered an $8 million bottom-line gain for the first half with majority of its sales generated in the US followed by Australia and the UK and helped by the cutting of high expenses including marketing and paid customer acquisition cost. 

On the outlook front, Cettire failed to provide any quantitative guidance for the second half, instead saying it expects to remain EBITDA positive in H2 FY23, and operate its business to maximise profitable revenue growth whilst also self-funding. This may be the reason investors sold out of Cettire shares in afternoon trade.

As markets expect consumer spending to continue declining as interest rates rise, Cettire may be face some headwinds in the second half of FY23.