Cettire’s auditors sign off on retailer’s financial accounts following revenue treatment review

Cettire’s financial accounts have been ticked off after auditor Grant Thornton conducted a more detailed review of how the online luxury retailer recognises revenue.

The listed retailer released its full-year results late last month but noted the financial accounts were unaudited. Cettire on Tuesday confirmed the audit process was now complete after the accounting firm took nearly a month to thoroughly asses how the retailer booked revenue.

The news sent Cettire shares soaring 79 per cent to close at $2.38.

Cettire sells products from more than 2500 luxury brands — including Gucci, Christian Dior, Givency and Burberry.

It operates entirely on a drop-ship business model — meaning it does not hold any physical inventory and instead sources products from third-party suppliers — which raised questions about whether it was an agent earning a commission or a retailer.

Grant Thornton has accepted Cettire’s view that it was a principal and not an agent in drop-shipping transactions.

The retailer reported a profit of $10.5 million in the 12 months to the end of June on a revenue of $742.3m.

Cettire in recent months has been the subject of allegations regarding the quality of products being sold 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.

Cettire in August said the global luxury sector continued to experience softer trading conditions heading into the current financial year.

“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.”

Cettire on Tuesday also announced it had appointed Caroline Elliott — former chief operation officer at fashion label Kookai — as a non-executive director.