Sales at luxury retail platform Cettire have lifted by just 1.7 per cent in the FY25 financial year to May 31 compared to the prior corresponding period.
The Melbourne-born, global luxury platform cited weaker demand in its established markets following the launch of US President Donald Trump’s ‘Liberation Day’ tariffs in early April.
Sales revenue peaked at $693.8 million, and follows double-digit sales lifts over the last year, including a 12 per cent lift in the first half of FY25. Third quarter sales lifted just 1 per cent, similar to the latest year-to-date trading performance.
Cettire founder and CEO Dean Mintz said the operating environment within the global personal luxury goods market since the third quarter has remained volatile.
“Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,” Mintz said. “As a result, elevated promotional activity persists across the market.
“Against this backdrop, Cettire’s focus remains on geographic revenue diversification and improving delivered margin percentage.”
Mintz added that his company’s emerging markets, including its recent push into mainland China, are showing opportunity and the platform is evaluating a further expansion in its footprint, having launched operations in Kuwait and Bahrain in recent weeks.
“The company sees opportunity to improve delivered margin percentage through reduced promotional intensity and fulfilment cost efficiencies,” Mintz continued. “Year-to-date profitability was impacted by the volatile market conditions, including significant FX swings, which contributed around $2 million of the negative adjusted EBITDA during April and May, in addition to the $2.1 million also announced in Cettire’s Q3 FY25 trading update.”
Cettire’s delivered a YTD FY25 margin of around 16 per cent, up slightly from 14 per cent reported in the third quarter of FY25.
The platform’s adjusted EBITDA was $500,000.
“The company’s net cash balance was approximately $45 million at period end,” Mintz added. “Cettire remains relentlessly focused on its strategy to grow profitably while self-funding. Due to the rapidly evolving market environment, the immediate focus remains on improving profitability.”
Cettire also reported a drop in its active customers by 1.3 per cent in YTD FY25, slipping to 671,328. Average order value lifted slightly by 2.7 per cent to $825, with gross revenue from repeat customers up 7 percentage points to 68 per cent.