Cettire shares dive as trading update misses estimates
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More news: Cettire shares tanked in early trading after a market update by the luxury retail platform missed estimates.
Cettire shares were down 22.6% to 36.5 cents at 10:50am AEST and have now retreated more than 80% over the last 12 months.
RBC Capital Markets analyst Wei-Weng Chen said consensus estimates for $7.8 million in full-year EBITDA had assumed an EBITDA profit of $400,000 in the June quarter. However, in the first two months of the quarter, Cettire generated an EBITDA loss of $6.9 million.
Sales growth in April and May also fell 21.6% compared to the prior corresponding period, Chen noted.
Meanwhile, Cettire's net cash balance of $45 million at the end of May is down from $76 million in March. After accounting for operating losses and capital expenditure in April and May, the company's capital balance may have unwound by $21 million to $22 million in two months, Chen said.
What they said: "Given how quickly [Cettire's] cash balance has fallen, our opinion is that an equity raise is not out of the question," Chen said.
Cettire reports sales rise as it warns of US tariffs impact
The news: Luxury retail platform Cettire has reported a 1.7% rise in sales revenue to $693.1 million in the 2025 fiscal year to date, but it warned of continued challenges in the global luxury market, amplified by US tariff policy changes.
The numbers: In a trading update, Cettire said average order value grew 2.7% year on year to $825, while active customers fell 1.3% to 671,328.
Year-to-date adjusted earnings totalled $500,000, including a $2 million realised foreign exchange loss during April and May.
The context: Cettire said "proactive moderation" in its promotional activity drove a softer revenue performance in the June quarter. Weaker demand in the company's established markets during April and May, notably in the US, was partially offset by more stable performance in emerging markets, it said.
Cettire noted the company is focused on delivering improved profitability through the remainder of FY25 and into FY26 but did not release profit figures.
What they said: "Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy," said Cettire CEO Dean Mintz.
"As a result, elevated promotional activity persists across the market.
"Against this backdrop, Cettire’s focus remains on geographic revenue diversification and improving delivered margin percentage.
"The company’s emerging markets continue to demonstrate a significant opportunity and Cettire is evaluating a further expansion in its footprint, having launched operations in Kuwait and Bahrain in recent weeks."
The source: ASX
