Auditor fails to sign off on Cettire books with full-year results still being reviewed

Cettire has warned of softer trading conditions and released preliminary full-year results that are in the process of being reviewed amid an overhaul of how the online luxury retailer recognises revenue.

The Dean Mintz-led retailer on Thursday revealed gross revenue increased 81 per cent to $978.3 million, in line with the guidance it provided the market in July.

But net profit slumped 34 per cent to $10.47m in the 12 months to the end of June, sending shares down 20.3 per cent to $1.06.

Cettire noted the financial accounts were unaudited and that it was “working closely” with accounting firm Grant Thornton to finalise the audit.

“This year’s audit is taking longer than in prior years as a result of the company taking the initiative to conduct more comprehensive processes,” Cettire said. “The remaining substantive audit matter is a technical review of revenue recognition.”

Providing its outlook for the current financial year, Cettire said the global luxury sector continued to experience softer trading conditions.

“Increased promotional activity remains prevalent as the remaining inventory from the Spring Summer 2024 season cycles through the system,” it said. “Clearance sales activity by participants in the online segment exiting parts of the market continued in July.”

Mr Mintz said Cettire continued to grow its share of the global online luxury goods market.

“Not only did approximately 270,000 net new customers purchase from the platform during the year, but existing customers, on average, purchased more and spent more per order, demonstrating the growing loyalty of our customer base,” he said.

Cettire in recent months has been the subject of allegations that customers are being sold counterfeit products from its platform, which it has strenuously denied.

It was also forced to make additional financial disclosures in July after it was questioned by the Australian Securities Exchange.