How Is Cettire Turning a $10M EBITDA Boost Amid Falling Sales?
Cettire reports a 3% dip in sales revenue for Q1 FY26 but posts a $10 million quarterly EBITDA improvement, driven by strong growth outside the US. The luxury e-commerce platform is navigating a challenging market with a focus on profitability and geographic diversification.
- Sales revenue down 3% year-on-year to $150.3 million
- Adjusted EBITDA improves by $10 million sequentially to $2.5 million
- Non-US gross revenue grows 18%, US revenue declines 15%
- Active customers fall 8% amid reduced marketing spend
- Cash balance remains strong at $37.7 million
Navigating a Challenging Luxury Market
Cettire Limited, the Australian luxury online retailer, has released its trading update for the first quarter of fiscal year 2026, revealing a mixed but cautiously optimistic performance. Sales revenue slipped 3% compared to the same period last year, landing at $150.3 million. This decline reflects ongoing softness in the global personal luxury goods market, particularly within the US, Cettire’s largest market.
Despite this, the company reported a notable turnaround in profitability. Adjusted EBITDA rose to $2.5 million, marking a $10 million improvement from the previous quarter and a $0.5 million increase year-on-year. This suggests that Cettire’s efforts to streamline operations and improve margins are beginning to bear fruit.
Geographic Diversification and Customer Dynamics
A key highlight was the strong 18% growth in gross revenue outside the US, signaling successful geographic diversification driven by the company’s localisation strategy. Meanwhile, US gross revenue declined by 15%, underscoring the challenges posed by a softer consumer environment and evolving trade policies in that region.
Active customers decreased by 8% to approximately 641,000, a result attributed to more conservative marketing investments. However, repeat customers contributed a growing share of gross revenue, rising to 68%, which points to solid customer loyalty despite the overall slowdown in new customer acquisition.
Operational Efficiency and Outlook
Cettire’s delivered margin improved to 15%, helped by heightened promotional activity and a reduction in marketing spend relative to sales, which fell below 6% for the quarter. The company’s cash position remained robust at $37.7 million, providing a buffer as it continues to focus on self-funding growth.
Looking ahead, Cettire acknowledges ongoing uncertainty in the luxury goods market, especially in the US. The company remains committed to its strategy of profitable growth and geographic diversification, with an immediate goal of sustaining profitability into the second quarter.
Bottom Line?
Cettire’s Q1 results show resilience and strategic progress, but US market softness remains a key hurdle to watch.
Questions in the middle?
- Will Cettire’s localisation strategy offset continued US market weakness in Q2?
- How will reduced marketing spend impact long-term customer acquisition and growth?
- Can the company sustain its improved EBITDA trajectory amid global luxury market volatility?
