AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Cettire sees modest Q3 revenue growth amid luxury sector headwinds
- Repeat customers drive 68% of gross revenue
- Profitability targeted in Q4 despite market uncertainty
In its Q3 FY25 trading update, Cettire (ASX:CTT), the online luxury fashion retailer, posted a marginal year-on-year revenue growth while signaling a strategic pivot toward profitability amid a challenging global landscape for high-end retail.
Modest Growth in a Soft Market
Cettire reported a 1% increase in gross revenue, reaching $260.1 million for the quarter, with sales revenue also ticking up by 1% to $192.5 million. While growth was modest, the company highlighted the strength of its customer base—active customers rose by 8% year-on-year to approximately 696,000, underscoring growing brand engagement. Notably, 68% of gross revenue was generated from repeat customers, reflecting strong customer loyalty.
Despite the rise in sales, Cettire posted an adjusted EBITDA loss of $4.7 million, affected by a $2.1 million foreign exchange loss and sustained promotional activity which impacted margins. The delivered margin for Q3 stood at 14%.
A Cautious but Focused Outlook
Cettire acknowledged persistent softness in global demand for personal luxury goods, a trend reflected across the sector. This volatility has driven the company to prioritize financial discipline and operational efficiency. Over $5 million in annual cost initiatives have been implemented, aiming to reduce variable expenses and support the path to profitability.
The management is directing attention towards achieving profitability in Q4 FY25 while also working on geographic diversification to buffer against regional market volatility.
Strategic Discipline Amid Volatility
CEO Dean Mintz noted that the luxury market has remained volatile post H1 FY25, with signs of demand softening across all key regions. However, he emphasized that Cettire’s relative performance remains strong compared to broader sector benchmarks, many of which reported negative growth during the March quarter.
The company’s strategy remains grounded in sustainable and profitable growth without reliance on external funding. The current focus is on navigating the uncertain market landscape and delivering a profitable fourth quarter.
In a sector grappling with macroeconomic uncertainty and shifting consumer behavior, Cettire (CTT) is leaning into its loyal customer base and disciplined cost management as levers to sustain momentum and strengthen its market position.
