Cettire shares tank on US demand warning
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More news: Cettire shares plunged after the retail platform reported a $4.7 million loss in adjusted earnings for the third-quarter and warned of softer demand in the US, its largest market, following recent tariff measures.
Shares were down 18.7% to 53.3 cents at 1:25pm AEST, extending losses of more than 80% over the last 12 months.
Cettire reports quarterly earnings drop as US tariffs weigh on demand
The news: Luxury retailer Cettire has warned of softening demand across all of its markets during the third quarter, as well as volatile trading in the US since new tariffs were announced in early April.
The numbers: Cettire's sales revenue edged up 1% year on year to $192.5 million, while its active customers increased 8% to 695,738. The company reported an adjusted earnings loss of $4.7 million, including a $2.1 million realised foreign exchange loss.
The context: Cettire's founder and CEO Dean Mintz said the luxury goods market remains volatile. The company continued to participate in promotional activity throughout the quarter, he noted, resulting in a reduction in delivered margin as a percentage of sales compared to the first-half period.
Cettire also said the recent US tariff changes have led to softer demand in the US, the company's largest market, and volatility in daily sales, including sales of items that are not subject to the duties. It flagged that new tariffs on the sale of China-manufactured items into the US, which represented 3.8% of Cettire's total gross sales in the third quarter, may also have a more direct impact.
The source: ASX
