Luxury e-commerce player keeps market share focus amid global headwinds
Cettire (ASX: CTT) has delivered a mixed bag of results in its Q3 FY25 trading update, with revenue holding steady despite a softer global luxury goods market and margin pressures from ongoing promotions.
The online luxury fashion retailer reported $260.1 million in gross revenue for the March quarter, up just 1% on the prior corresponding period. Sales revenue also edged up 1% to $192.5 million, while active customers grew 8% year-on-year to nearly 696,000—a sign that brand loyalty and customer engagement remain solid. Repeat customers made up 68% of gross revenue, continuing an upward trend.
But beneath the surface, margins have taken a hit. The company posted a $(4.7) million adjusted EBITDA loss, which includes a $2.1 million hit from realised FX losses, thanks to significant EUR/USD volatility. Delivered margin came in at just 14%, down from previous periods due to continued discounting and a moderate increase in marketing spend (above 8% of sales).
CEO Dean Mintz pointed to the broader slowdown in the luxury sector, noting that while Cettire’s revenue growth wasn’t as strong as in the first half, the business is still likely outperforming many global peers. He said the company focused on protecting and growing its market share in Q3, even as volatility across key geographies, including the US, weighed on overall results.
Cettire also flagged a potential drag from recent US tariff developments, with demand softening in its largest market—even on goods not directly subject to the new duties. While China-made products only made up 3.8% of total Q3 gross sales, the general uncertainty appears to be affecting consumer behaviour more broadly.
To combat margin pressure, Cettire has rolled out more than $5 million in annualised cost-saving initiatives, targeting fulfilment, merchant fees and IT expenses. These are expected to start delivering benefits in Q4 and beyond.
Despite a dip in net cash to $76 million (from $90 million a year ago), the business says it’s staying true to its strategy of profitable, self-funded growth.
Short-term focus? Profitability in Q4. Cettire’s playing the long game, but in this market, steady hands and a sharp eye on costs might be the most stylish strategy of all.
