Cettire in the red amid weak US performance, shares plunge
Online luxury fashion retailer Cettire has reported a loss for the fiscal first half, as market-wide headwinds, including US tariffs, dented sales and customer demand.
For the six months ended December 31, the company swung to a net loss after tax of $1.1 million from last year’s net profit of $4.7 million. Adjusted EBITDA decreased 28 per cent to $8.7 million.
Sales revenue fell 2.8 per cent to $382.8 million during the half.
Management said the company faced challenging market conditions throughout the period, including softer demand for luxury goods globally and macro uncertainty due to changes to US trade policy.
The elimination of the de minimis exemption in the US resulted in a step change to duties attachment rates, which had a meaningful impact on sales in the retailer’s largest market, they added.
Excluding the US market, Cettire sales rose 13 per cent to $225.1 million.
Active customers declined 12 per cent to 613,078, reflecting softer US demand and a strategic reduction in paid marketing investment.
“The global luxury market has continued to face headwinds throughout H1-FY26, with persistent inflation pressure and subdued consumer confidence,” said Cettire’s founder and CEO, Dean Mintz.
“Despite this backdrop, we have remained focused on executing our plan to grow Cettire’s share of the global personal luxury goods market while remaining self-funding.”
The company’s shares plunged 13 per cent to 39¢ on Thursday following the results announcement.
According to the Australian Financial Review, Cettire’s auditor Grant Thornton also warned the company’s liabilities exceeded its current assets by $51.6 million, sparking concerns about its ability to meet obligations.
Management expects the third quarter to be a lot more challenging due to uncertainty within the global luxury market and aggressive promotional activity. However, they anticipate improvements in the fourth quarter, both in the US and the rest of the group, as the company starts to cycle the major changes in US trade policy.
The company expects full-year sales growth to be broadly flat.
The post Cettire in the red amid weak US performance, shares plunge appeared first on Inside Retail Australia.