Luxury retailer Cettire updates market with additional financials following ASX queries

Under-pressure online luxury retailer Cettire has made additional financial disclosures after it was recently questioned by the Australian Securities Exchange and following a June earnings downgrade that sent shares to their lowest since mid-2022.

The company confirmed to the market on Wednesday it was expecting between $975 million and $980m in gross revenue for the 12 months to the end of June. This was more than the $735m-$745m guidance it provided investors on June 24.

The June update also warned investors before tax earnings for the full-year would land between $32m and $35m, well below the $44.1m consensus estimate.

The Dean Mintz-founded company at the time said the global only luxury environment it operates in had become “more challenging” in the past few months.

Mr Mintz told investors repeat customers “were growing” and that the Cettire proposition, selling a broad range of discounted designer clothing and accessories online, was resonating with them.

But he said more “challenging market conditions” meant Cettire had been spending more on marketing and promotions to keep pace with rivals also offering seasonal sales.

In the latest update on Wednesday, Cettire said active customers have grown to 692,287, up 64 per cent from 423,253 in the 2023 financial year, while the average order value grew between 6-7 per cent to $795-$800.

Last month’s downgrade spooked Cettire’s share price into a nosedive of nearly 50 per cent to $1.14.

While the share price has since made a recovery, it was still trading 1.7 per cent lower to $1.475 just after 11am and is down 57 per cent over the past year.

The new disclosures on Wednesday also comes just weeks after Cettire responded to a letter from the ASX confirming it was complying with market disclosure procedures.

The June 28 letter from Cettire was in response to the ASX’s queries about the materiality of key guidance metrics not included in the June 24 update. Cettire provided the additional metrics on Wednesday.

The listed online retailer sells products from more than 2500 luxury brands, including Gucci, Christian Dior, Givenchy and Burberry.

Cettire operates entirely on a drop-ship business model, which means it does not hold any physical inventory and instead sources products from third party suppliers.

Cettire will report full-year results on August 8.