Luxury platform Cettire shares dive on disappointing trading update

Once a market darling worth more than $1.8bn, shares in Cettire have tanked 85 per cent the last year and a new earnings miss - partly blamed on US tariffs - has investors worried it could be forced into raising capital.

Shares in fashion and apparel online retailer Cettire have collapsed 85 per cent in the last 12 months.

The latest trading update from struggling online luxury fashion marketplace Cettire has been derided as a “sizeable miss” by analysts, triggering a near one-third slide in its share price. The stock has collapsed more than 85 per cent over the last year.

Brokers have also raised concerns about the company’s balance sheet in the wake of deteriorating earnings and speculated Cettire might be forced to pull the trigger on a capital raising.

Once an investor favourite with a market capitalisation of $1.8bn, Cettire has imploded to microcap status as its sales and profitability comes under pressure from the volatile global economy, tougher trading conditions in luxury goods, and lately, the US tariff regime.

Cettire, dogged previously by controversy around its accounting treatment of customs duties, on Thursday released a market update for the financial year to the end of May that highlighted its crashing performance.

The luxury marketplace is at risk of raising new equity, broker RBC Capital said.

Revenue of $693.8m was up 1.7 per cent against the same period last year.

Gross revenue (after taxes, excluding refunds) of $920.1m was up 2.2 per cent, average order value of $825 was up 2.7 per cent, and active customers (those who have purchased within a year) was 671,328 down 1.3 per cent.

Shares in Cettire plummeted more than 30 per cent to 32.5c on the disclosure, which RBC Capital Markets said was a disappointment versus market expectations.

“In our view, continuous disclosure obligations have likely compelled Cettire to provide a surprise trading update given the sizable miss compared to full year consensus earnings expectations,” the note said.

The broker said consensus EBITDA expectations of $7.8m for fiscal 2025 had assumed earnings of $400,000 in the fourth quarter. However, in the first two months of the fourth quarter, Cettire was tracking at an earnings loss of $6.9m.

As a result, EBITDA in the 11 months of financial 2025 is $500,000, the analyst said.

“Beyond soft trading (April/May down 21.6 per cent versus the previous corresponding period), Cettire’s balance sheet is a key concern to us. Cash of $45m at the end of May is down from $76m in March.

“After accounting for Apr/May operating losses and capex, we estimate Cettire’s working capital balance may have unwound by around $21m-$22m in two months. Given how quickly Cettire’s cash balance has fallen, our opinion is that an equity raise is not out of the question.”

Cettire said the period to May 31 was characterised by continued challenges in the global luxury market, amplified by US tariff policy. There was a moderation in Cettire’s promotional activity, pointing to soft June quarter revenue.

“Cettire remains relentlessly focused on its strategy to grow profitably while self-funding,” chief executive Dean Mintz said. “Due to the rapidly evolving market environment, the immediate focus remains on improving profitability.”

The company noted weaker demand in established markets during April-May, notably in the US, was partially offset by more stable performance in new markets.

Cettire delivered a margin of around 16 per cent year to date reflecting heightened promotional activity and higher fulfilment costs.

Cettire’s largest shareholder is founder Mr Mintz who owns just under 30 per cent of the company.

Originally published as Luxury platform Cettire shares dive on disappointing trading update