Cettire shares dive 30pc after flagging US tariff headwinds and softer consumer demand
Shares in Cettire are copping a beating after the online retailer warned volatility caused by US tariffs, weaker demand in established markets and a challenged luxury goods market have impacted profitability.
The Dean Mintz-led business on Thursday said sales revenue of $693.8 million for the financial year to the end of May was up 1.7 per cent, compared with the prior corresponding period. Gross revenue lifted 2.2 per cent to $920.1m.
In the trading update to the market, Cettire said the period was characterised by continued challenges in the global luxury market, amplified by US tariff policy changes, as well as weaker demand in established markets during April and May.
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Cettire shares closed down 31.2 per cent to 32¢. They are off nearly 80 per cent for the year so far.
The Melbourne-based company — which sells products from more than 2500 luxury brands like Gucci, Christian Dior, Givenchy and Burberry — delivered a margin of about 16 per cent over the period, reflecting the continuation of heightened promotional activity.
As a result, Cettire recorded adjusted earnings of $500,000.
Mr Mintz said year-to-date profitability was impacted by volatile market conditions, including significant foreign exchange swings, which contributed around $2m of the negative adjusted earnings during April and May.
This was in addition to the $2.1m announced in Cettire’s third quarter trading update in April.
“The operating environment within the global personal luxury goods market since (the trading update in April) has remained volatile, with a continued softening of demand in the company’s established markets, notably in the US,” Mr Mintz said.
“Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy.
“As a result, elevated promotional activity persists across the market. Against this backdrop, Cettire’s focus remains on geographic revenue diversification and improving delivered margin percentage.”
Active customers fell 1.3 per cent to 671,328.
