The Cettire Ltd (ASX: CTT) share price has dropped almost 10% in trading today after an announcement regarding a selldown of shares by the founder of the business.
Cettire is a global online retailer. It offers a large selection of personal luxury goods through its website, Cettire.com. It has around 200,000 products of clothing, shoes, bags and accessories from approximately 1,700 luxury brands.
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Cettire share price sinks after founder selldown
In a statement to the ASX, Cettire said that the founder and CEO of the luxury retailer, Mr Dean Mintz, has agreed to sell down 35 million shares in the company. These shares were recently released from voluntary escrow.
There have been rumours about a potential sale for a while.
The ASX retail share said that the selldown represented 9.18% of the company's issued capital.
Sale price
Mr Mintz's sale of shares was down at a Cettire share price of $1.35 in a block trade.
However, that sale price is still another 5% lower than the current price of $1.42.
Over the last month, the Cettire share price has fallen almost 40% over the past month.
How much of Cettire will Mr Mintz own after the sale?
According to the ASX announcement, after the sale Mr Mintz will still own a 56.72% shareholding in the company. He will still be Cettire's largest shareholder.
Mr Mintz has also confirmed that he will not sell any further shares in Cettire prior to the release of the company's FY22 full-year result. This should be released in the August 2022 reporting season.
Dean Mintz comments
Commenting on his loyalty to the company and the benefit of the sale, Mr Mintz said:
Cettire is a huge part of my life, it has a phenomenal market opportunity and I remain fully committed to continuing to lead the company to grow shareholder value. The sale represents a small portion of my shareholding and I will remain Cettire's largest shareholder. The sale enables greater trading liquidity and a broadening of the share register and I look forward to welcoming the new shareholders to the company.
Cettire share price snapshot
Since the start of 2022, the Cettire share price has fallen around 60%.
This decline has occurred despite the company reporting that its gross revenue increased by 242% in January 2022 compared to January 2021.
Earlier this month, Cettire also announced that it is entering the Chinese online luxury market. By 2025, China is expected to be the world's largest personal luxury goods market. This will represent a $150 billion potential addressable market.
Supporting this Chinese expansion move is a partnership with JD.com, one of the world's biggest e-commerce players. JD.com has 550 million active customers and it is China's largest online retail platform. JD.com will help drive traffic and brand awareness.
