Cettire’s Quarterly Performance Sparks Downgrades Amid Slowed Sales Growth

October 30, 2024 02:00 PM AEDT | By Team Kalkine Media
 Cettire’s Quarterly Performance Sparks Downgrades Amid Slowed Sales Growth
Image source: shutterstock

Highlights 

  • Cettire faces downgrades following a quarterly update indicating slower sales growth.
  • Forecasts for Cettire’s revenue revised due to a 5% growth in a key quarter.
  • Stock value saw a significant drop, closing at $1.55.

Luxury fashion retailer Cettire (ASX:CTT) experienced a shift in market sentiment after recent quarterly results revealed a slowdown in its sales growth, prompting some financial institutions to adjust their outlook on the company. Bell Potter, one of the firms evaluating the brand's performance, revised its rating following this update. Notably, Cettire's second quarter—historically significant for the brand’s seasonal revenue—saw sales growth at a modest 5%, attributed to what was described as "profit optimization."  

This slower growth pace led Bell Potter to adjust revenue forecasts for Cettire, expecting a similar trend to continue not only throughout the current quarter but possibly into the upcoming one as well. Such forecasts indicate that the company may experience some challenges in reaching prior projections within the timeframe, focusing instead on maintaining its profit margins amidst the current retail environment. 

Bell Potter’s revised outlook comes after closely examining Cettire's latest numbers and assessing how this measured approach to profitability may influence overall revenue figures. With these insights, the firm chose to leave Cettire’s price target unchanged at $2. Despite this steady projection, Cettire’s stock saw a significant impact in market trading, with a 12.4% drop, bringing its share value to $1.55. This decrease reflects broader market reactions to the company’s update and the revised expectations moving forward. 

Similarly, RBC Capital Markets also issued a new rating for Cettire on Wednesday. RBC downgraded its outlook to “underperform” and set a revised price target at 90¢. This adjustment aligns with RBC’s expectations around the brand’s performance trajectory over the coming quarters. The financial institution's review suggests that challenges in sustaining high growth rates may prompt further adjustments to Cettire's approach in the competitive luxury market sector. 

As these financial assessments unfold, Cettire’s quarterly performance continues to garner attention. With retail dynamics continually evolving, Cettire’s strategy and adaptability in maintaining profitability while pursuing growth will be critical areas for market watchers to observe in the coming months. 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.