Cettire shares climb despite US sales slowdown
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More news: Cettire shares climbed after the online fashion retailer reported earnings growth for the first quarter, despite headwinds in the US market.
Shares were up 2.8% to 74.5 cents at 12:50pm AEDT. The stock has shed 67% over the last 12 months.
E&P Capital analysts Olivier Coulon and Shankari Thayakaran said Cettire's return to positive earnings in the first quarter was "obviously a positive" despite "a loss of momentum in the US".
They noted that the US slowdown "shouldn't have come as a great surprise" given issues relating to US tariffs were "well flagged" through the year.
Cettire flags drop in first-quarter sales and active customers
The news: Online fashion retailer Cettire has reported a drop in sales and customers for the first quarter, flagging ongoing headwinds in the US market, partly driven by the country's global tariffs policy.
The numbers: Cettire posted sales revenue of $150.3 million for the first quarter, down 3% compared to the prior corresponding period. Excluding the US market, gross revenue climbed 18%.
Active customers lowered 8% year on year to 641,000. Average order value rose 17% to $907.
The context: Cettire's founder and CEO Dean Mintz said the company continued to experience a "challenging industry backdrop" during the quarter, with the US seeing "headwinds related to a softer consumer environment and changes in trade policy".
What they said: "In the short term, there continues to be uncertainty within the global personal luxury goods market, with softer demand and volatility in daily sales persisting, particularly within the USA, Cettire's largest market," said Mintz.
"The company is continuing is continuing to focus on further geographic diversification of its revenue base, underpinned by its localisation strategy."
The source: ASX
