Cettire Reports $742M Revenue with $2.6M Net Loss in FY2025
Cettire Limited reported nearly unchanged revenue for FY2025 but swung to a net loss of $2.6 million, reversing last year’s profit. The luxury fashion e-commerce company declared no dividends amid declining net tangible assets.
- Revenue steady at $742.1 million, down marginally from prior year
- Net loss of $2.6 million after tax, compared to $10.5 million profit in FY2024
- No dividends declared for the fiscal year
- Net tangible assets per share fell to negative 0.1 cents
- Financial statements received an unmodified audit opinion
Steady Revenue, Sudden Profit Reversal
Cettire Limited, a key player in luxury fashion e-commerce, has released its preliminary final report for the year ended 30 June 2025. The company’s revenue remained essentially flat at $742.1 million, a negligible decrease from the previous year’s $742.3 million. However, beneath this surface stability lies a stark reversal in profitability.
For FY2025, Cettire posted a net loss after tax of $2.646 million, a significant downturn from the $10.475 million profit recorded in FY2024. This swing marks a 125% decline in net earnings, signaling challenges that the company will need to address moving forward.
Balance Sheet and Dividend Decisions
The company’s net tangible assets per ordinary share have also deteriorated, dropping from 2.2 cents to a negative 0.1 cents. This shift suggests a weakening in the company’s underlying asset base relative to its share count, which may raise concerns among investors about balance sheet strength.
In line with the loss, Cettire declared no dividends for the year, maintaining the same stance as the previous fiscal period. This decision reflects a cautious approach to capital management amid uncertain profitability.
Outlook and Market Implications
The company’s financial statements were audited with an unmodified opinion, indicating that the reported figures fairly represent its financial position. However, the lack of detailed commentary in the announcement leaves questions about the drivers behind the profit decline and the company’s strategic response.
Investors will be keen to review the full annual report for insights on operational challenges, cost pressures, or market conditions impacting Cettire’s performance. The flat revenue combined with a loss suggests margin compression or increased expenses, which could influence the company’s future growth trajectory.
As a luxury fashion e-commerce retailer, Cettire operates in a competitive and rapidly evolving market. The FY2025 results may prompt analysts and shareholders to scrutinize management’s plans to restore profitability and enhance shareholder value.
Bottom Line?
Cettire’s flat sales but slipping profitability set the stage for a critical strategic reset.
Questions in the middle?
- What factors contributed most to the swing from profit to loss despite stable revenue?
- How does management plan to address the decline in net tangible assets per share?
- Will Cettire resume dividends once profitability is restored, and on what timeline?
