Cettire shares have plummeted 14.4 per cent following the announcement of a net loss for the first half of the year. The online luxury retailer experienced a downturn as consumers curtailed spending on luxury goods, and new US tariffs negatively impacted the company’s profitability. Cettire offers over 2,500 luxury brands, with more than 500,000 products including clothing, shoes, bags and accessories. The company does not hold its own inventory and instead relies on third-party sellers to ship items directly to customers.
Sales revenue for the half-year totalled $382.8 million, a 3 per cent decrease compared to the prior corresponding period. While order volume decreased year-on-year, this was partially offset by an increase in the average order value. Cettire reported a net loss of $1.1 million for the six months ending December 31, a significant shift from the $4.7 million profit recorded a year earlier.
The company cited weakness in the United States market, a key region for Cettire, as a primary factor. Prices on goods were increased following the imposition of US tariffs, which led to reduced consumer spending. Excluding the US, sales revenue increased by 13 per cent. The elimination of the de minimis rule in the US, which previously exempted goods valued under $US800 from taxes, has also stifled demand since August. Higher fulfilment costs further reduced gross profits by $16 million to $54 million.
Consistent with the previous year, no dividends were declared. Cettire specialises in offering a wide range of luxury products from various brands, operating without holding any physical inventory.
