RBC 'negative' on Cettire Q1 result, sees 48% downgrade to first-half EBITDA
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More news: RBC Capital Markets analysts have said Cettire’s results reveal “continual challenges for the luxury platform”.
Cettire’s share price had plunged 10.75% by 1:36pm AEDT.
The analysts had a ‘negative’ sentiment rating on the update and had a $0.9 price target on the stock.
What they said: “Ultimately based on CTT's current 2Q run rate and margins, we view today's update as a -5% downgrade to 1H25 revenue and -48% downgrade to 1H25 EBITDA,” RBC analysts said.
“1Q itself was in-line with CTT's trading update with sales +20%, however we believe the market will be concerned with CTT's 5% growth rate in October.”
Cettire shares sink as EBITDA drops 77%
More news: Cettire shares had sunk 14.3% to $1.84 by 10.15am AEDT, after after the online fashion retailer posted a 77% drop in its quarterly EBITDA.
The luxury online platform posted an adjusted EBITDA of $2 million for Q1, down from $8.7 million during the prior corresponding period.
Over the last 12 months the stock has dropped 26.61%.
Cettire Q1 sales revenue rises, EBITDA plunges
The news: Cettire has reported $155 million in Q1 sales revenue, a 22% increase compared to the same period last year, and said it had addressed softer trading conditions by “optimising operating settings”.
The numbers: Delivered margins remain under pressure amid "softer global luxury demand", coming in at 17% on the back of promotional activity.
After a particularly soft fourth quarter, adjusted EBITDA was at $2 million, a 77% decrease from $8.7 million from the prior corresponding period.
The context: Cettire has come under immense pressure from short sellers this year dividing the market over the sustainability of its business model.
The sources: ASX announcement, RBC Capital research
