Allegations of border tax dodging, a founder with a proclivity for large share sales, and now a Trump-borne tariff regime – Cettire (ASX:CTT) just can’t catch a break.
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Specifically, Cettire isn’t worried about the 10% blanket tariff given to all Australian exports. It’s more concerned about U.S. tariffs on the EU, given many goods ASX-listed Cettire sells on its website go to U.S. customers from Europe.
As a luxury retailer, this isn’t surprising. Just consider where LVMH comes from. Cettire says it will continue to assess; that it recently turned to localisation and that this is expanding its revenue base
The market wasn’t having it.
Cettire fell -12% to 70cps in the first hour of Thursday trades as investors made for the exits. That’s probably because Cettire was forced to concede that 41% of Cettire’s total gross sales are made in the EU going to the U.S.
“The company notes that changes to U.S. tariffs on overseas imports will likely impact the majority of online and bricks and mortar luxury retailers, as a significant proportion of luxury items are manufactured in the EU,” the company added, as if that makes anything better for shareholders.
For now, Cettire appears to be hoping plans from EU manufacturers to raise prices in a bid to offset tariff impacts might be what helps its bottom line.
Of course, that could bring the average order above the U.S. de minimis exemption.
For now, orders below US$800 continue to remain unchanged by today’s tariffs – which could suggest the shares are oversold, but, given Cettire’s reputation, this is the last thing it needs.
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