Online luxury retailer Cettire Ltd (ASX:CTT) has warned of continued trading pressures driven by volatility coming from United States tariff changes, softening consumer demand in key markets and an increasingly constrained luxury goods sector.
In a trading update for the financial year ending May 31, 2025, the company reported sales revenue of A$693.8 million, a modest increase of 1.7% on the previous year. Gross revenue lifted 2.2%, while average order value rose 2.7% to A$825. However, active customer numbers fell 1.3% to 671,328.
Challenges for luxury market
Cettire said the luxury market remained challenged, with conditions exacerbated by changes to US tariff policy. The company also cited weaker demand across its core markets in April and May—particularly in the US—partly offset by more stable trading in emerging regions.
Promotional activity was moderated during the period, contributing to a subdued June quarter revenue performance. For the year to date, margins tightened to around 16%, impacted by sustained promotional pressure and higher fulfilment costs.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at A$500,000, inclusive of approximately A$2 million in foreign exchange losses during April and May.
Shares in Cettire slumped as much as 26% on Wednesday to a three-year low of A$0.34, before closing at A$0.345. The stock is down nearly 80% over the past 12 months, with the latest decline triggered by its profit warning and flat sales outlook.
Highlights
YTD FY25 Highlights vs YTD FY24
- Sales revenue of $693.8 million, +1.7% versus prior corresponding period (“pcp”)
- Continued challenges in global luxury market, amplified by US tariff policy changes
- Proactive moderation in Cettire’s promotional activity, pointing to soft June quarter revenue performance
- Weaker demand in Established Markets during April-May, notably US, partially offset by more stable performance in Emerging Markets
- YTD FY25 Delivered margin of ~16% reflecting continuation of heightened promotional activity and higher fulfilment costs
- YTD FY25 Adjusted EBITDA1 of $0.5 million, inclusive of ~$2 million realised FX loss during April-May Focused on delivering improved profitability through the remainder of FY25 and into FY26, while greater volatility in demand persists