Cettire Shares Plunge 31% on US Demand Concerns

Highlights:

• Cettire Limited (ASX: CTT) shares plunged 31% at the time of writing after the CEO warned of weakening demand in the US market.
• FY24 revenue rose by just 1.7% to $693.8 million, falling short of investor expectations for the luxury e-commerce retailer.
• Market concerns over US consumer spending and a cautious growth outlook triggered a sharp sell-off in the company’s stock.

Luxury E-Retailer Flags Slowing Growth in Key Market

Shares of Cettire Limited (ASX: CTT) nosedived by 31% at the time of writing, making it one of the worst-performing stocks of the day. The sharp decline followed comments from CEO Dean Mintz, who flagged softening consumer demand in the United States, a key market for the luxury fashion platform.

The warning came alongside Cettire’s full-year financial results, which revealed that sales revenue rose by only 1.7% to $693.8 million. While still showing modest growth, the figure disappointed investors expecting stronger performance from the digital luxury retailer.

Investor Sentiment Dented by Cautious Outlook

Cettire’s management pointed to a challenging economic environment in the US, where rising interest rates and inflationary pressures have dampened discretionary spending. Dean Mintz emphasized that although the company continues to scale globally, near-term volatility in key international markets—particularly the US—is likely to impact sales growth. The disappointing update and cautious forward outlook spooked the market, triggering a sharp sell-off in the company’s stock.

Cettire Faces Pressures Amid Global Retail Shifts

Founded in 2017, Cettire offers discounted luxury fashion items from major global brands through its e-commerce platform. The company had seen rapid growth in previous years by capitalizing on the global trend toward online luxury shopping. However, macroeconomic headwinds appear to be catching up. Analysts are now questioning whether the company’s growth strategy will need to shift, especially if consumer confidence in the US continues to wane. At the time of writing, Cettire’s stock remains under pressure as investors await further clarity on the company’s plans to navigate the current demand slump.

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