How Is Cettire Navigating FY25’s Luxury Market Turbulence?
Cettire Limited reported stable revenue for FY25 despite a challenging luxury market, but profitability sharply declined due to increased promotional activity and softer demand.
- Gross revenue steady at $975.3 million, flat versus FY24
- Adjusted EBITDA plunges 99% to $0.3 million
- Repeat customers drive 68% of gross revenue, up 7 percentage points
- Active customers decline 5%, reflecting softer demand and reduced marketing spend
- Strong cash position maintained with zero debt
Stable Revenue Amidst Global Luxury Market Challenges
Cettire Limited, the Australian-listed global luxury online retailer, has released its FY25 results showing a largely stable top line despite a turbulent market environment. Gross revenue came in at $975.3 million, nearly unchanged from the prior year’s $978.3 million, underscoring resilience in a sector facing inflationary pressures, geopolitical tensions, and shifting consumer spending patterns.
However, beneath the surface, the company’s profitability took a significant hit. Adjusted EBITDA dropped precipitously by 99% to just $0.3 million, down from $32.5 million in FY24. This stark decline was driven primarily by a 23% fall in delivered margin, which fell to 16.1% of sales revenue from 20.9% the previous year, reflecting intensified promotional activity aimed at sustaining sales volumes.
Customer Dynamics and Marketing Strategy
Active customers decreased by 5% to 657,000, a direct consequence of both softer global demand and a strategic reduction in paid marketing investment, which fell 22% year-on-year to $59.3 million. Despite this, repeat customers proved a bright spot, increasing their share of gross revenue to 68%, up 7 percentage points from FY24. Repeat customers also demonstrated higher average order values and frequency, signaling strong brand loyalty and customer engagement.
Cettire’s CEO Dean Mintz highlighted the company’s focus on profitable growth and geographic diversification, noting that emerging markets now represent 37% of gross revenues, with particularly strong growth in Asia and the Middle East. The company also successfully launched in Kuwait and Bahrain, supported by proprietary storefront technology enhancing its localisation strategy.
Operational Resilience and Supply Chain Strength
Operationally, Cettire ended FY25 with record inventory levels, increasing in-stock products to approximately 270,000, up from 200,000 the previous year. The company’s supply chain diversification continues to deepen, with hundreds of suppliers contributing to a broad brand portfolio, none dominating more than 4% of gross revenue. This diversification is designed to mitigate risks and support sustained growth.
Organisationally, Cettire expanded its team, focusing on engineering, commercial, and marketing capabilities to support its global ambitions. The company also undertook cost initiatives targeting freight and merchant fees to improve profitability heading into FY26.
Outlook and Market Uncertainties
Looking ahead, Cettire faces ongoing uncertainty, particularly due to recent changes in U.S. trade policy effective late August 2025, which could disrupt its largest market. Early FY26 trading shows low single-digit gross revenue growth overall, with emerging markets growing in double digits. The company delivered positive adjusted EBITDA in July, a seasonally low month, suggesting operational leverage may be returning.
CEO Mintz remains confident in Cettire’s business model and its ability to navigate current challenges, emphasizing the company’s flexibility and self-funding approach. Meanwhile, the board saw a change with the resignation of Independent Director Daniel Agostinelli, who stepped down to focus on other commitments.
Bottom Line?
Cettire’s FY25 results reveal a company weathering a tough luxury market with strategic resilience, but profitability recovery remains a key watchpoint.
Questions in the middle?
- How will changes to U.S. de minimis rules impact Cettire’s largest market in the medium term?
- Can Cettire sustain growth and margin improvement while balancing promotional pressures?
- What further strategic moves will the company make to deepen geographic diversification and supply chain resilience?