Cettire Ltd (ASX: CTT) shares are having a very strong start to the week.
In afternoon trade, the ASX All Ords share is up over 8% to $2.58.
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Why is this ASX All Ords share charging higher today?
Investors have been buying the online luxury products retailer's shares today after it responded to another scathing media article in The Australian.
That article alleges that Cettire is selling non-genuine products on its platform and even delivered a customer an empty box.
However, Cettire has responded by stating that the media article "contains a number of claims and allegations that are untrue."
The ASX All Ords share also highlights that in recent weeks it has been the "subject of negative press articles that have sought to amplify the claims of parties who have openly taken short positions in Cettire shares and sought to profit from a short-term decline in the share price."
According to the most recent short seller data from ASIC, approximately 4.8% of Cettire's shares were held short.
Response
Judging by the way the ASX All Ords share is rallying today, it seems that many investors are satisfied with Cettire's response to the allegations.
Commenting on its supply chain and product quality, the company said:
Cettire has the utmost confidence in the sustainability of its supply chain and the authenticity of all products available and sold via its platform. […] Cettire only works with established distributors in the luxury supply chain. All of Cettire's suppliers source products directly from luxury brands and are a core part of brands' distribution channels.
The company highlights that it has not come across a single fake product from over 2 million orders placed on its platform. It adds:
Since commercial launch in 2017, Cettire has handled more than 2 million individual orders. There is not a single confirmed case of a non-genuine item being sold on Cettire's platform. None of the examples presented to Cettire by The Australian contain any verifiable evidence that a non-genuine item had been purchased via Cettire. Based on information provided by The Australian, the items used as examples have not been inspected by either Cettire or the relevant manufacturer to verify their authenticity.
Management also defended its customer experience and advised that it is "not aware of any ACCC investigation into its customer service practices."
The ASX All Ords share then concludes:
Cettire categorically rejects the entirely unfounded allegations contained in the article. Selective use of, and reliance on, a small number of unverified customer reviews when more than 60% of Cettire's revenues come from repeat customers and the Company is transacting over 1 million orders per annum, is an entirely unreasonable representation of Cettire's business. It is the Board's opinion that the article misrepresents the Company's supply chain, product quality and levels of customer satisfaction.
