Luxury will sell again. The real issue is that the Cettire's business model is not sustainable once you remove the arbitrage on duties and fake products! That is the real issue here.
Theoretically if the global luxury companies are doing it so tough right now (see downgrades by Burberry, Kerring etc), Cettire should be booming. But instead Cettire printed negative EBITDA in Q4 FY2024 with extremely weak margins and has complained of continued weakness in July and August.
You see why it doesn't add up??
The founder is not really aligned when he has sold $350m of stock in the last 3 years and now buys $16m at the lows. If he was truly aligned, he wouldn't have sold all that stock in the first place. If you truly believe in the bright future for this company, you would never sell a share and definitely not $350m!!
They send empty boxes to customers and customers have found fake goods and don't remit duties to authorities! This is how they have made money until now. Given recent spotlight into these practices, it seems they have had to play by the rules which is why their profitability is negative!
There are far too many red flags!
CTT Price at posting:
$1.92 Sentiment: None Disclosure: Not Held
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