Stock of the day: Cettire

(AI video summary)

This video was created on 12 June 2025 for IG audiences by ausbiz.

ASX code: CTT

Cettire shares slide on soft update

Cettire shares fell sharply after the online luxury retailer flagged a weaker-than-expected June quarter, highlighting persistent challenges across the high-end retail sector.

June quarter results: 

• Sales revenue: $694 million for the 11 months to May, a 1.7% year-on-year (YoY) rise
• Earnings : $0.5 million, far below the $9.4 million profit achieved in the prior financial year.

As of the update, the stock was down over 25% to $2.28, extending its 12-month decline. The company also reported a 3.5% decline in active customers since December, indicating waning user engagement.

Luxury sector struggles in current climate

Despite its broad portfolio of 2500 luxury brands and half-million products, Cettire is facing an uphill battle as the luxury market softens. Global demand for high-end fashion continues to deteriorate amid inflation and interest rate pressures.

Youth-focused brands such as Lovisa and Universal Store have remained resilient, better catering to price-conscious consumers. In contrast, Cettire’s model - reliant on a high-spending demographic - is more exposed to discretionary spending slowdowns.

Tariff exposure adds to pain

Cettire cited United States (US) tariff changes as a headwind, further clouding the near-term outlook. The firm’s earnings update, which analysts suggest may have been prompted by regulatory disclosure obligations, adds to concerns about its ability to maintain profitability under current macroeconomic conditions.

Investment outlook

Cettire shares have extended their multi-quarter downtrend. After peaking near $5.00 in early 2023, the stock has steadily declined and now trades near $2.28, close to its 52-week low.

The outlook from analysts suggests caution, as Cettire's performance and future earnings remain under scrutiny.