Cettire Limited (ASX:CTT) Announces Q3 FY25 Trading Update
Financial Performance
Cettire Limited reported sales revenue of $260.1 million for Q3 FY25, a 1% increase compared to Q3 FY24. The company achieved a delivered margin of 14%, reflecting continued promotional activity. Adjusted EBITDA was a loss of $(4.7) million, including a $2.1 million foreign exchange loss. Active customers rose by 8% to approximately 696,000, with strong revenue contributions from repeat customers.
Trading Update
Gross revenue increased by 1% to $260.1 million compared to the prior corresponding period. Sales revenue reached $192.5 million, up 1%. Active customers grew by 8% to 695,738, while gross revenue from repeat customers rose by 6 percentage points to 68%.
Outlook
Cettire faces ongoing uncertainty in the global luxury goods market, with softening demand persisting. The company has implemented cost initiatives totaling over $5 million annually to drive variable cost improvements. Cettire focuses on achieving profitability in Q4 and further geographic diversification of its revenue base.
Executive Comments
CEO Dean Mintz stated, “The operating environment within the global personal luxury goods market since Cettire’s H1 FY25 results has remained volatile, with softening underlying demand evident across all geographies. Following a profitable first half, Cettire placed an increased emphasis on market share in the third quarter. While revenue growth was not maintained at H1 FY25 levels, Cettire’s growth is likely to outperform the luxury sector with recent industry results and guidance demonstrating negative growth across a number of brands in the March quarter.”
CEO Dean 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 is on delivering Q4 profitability.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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