ASX retail share Cettire Ltd (ASX: CTT) has crumbled in value since early 2024.
Christopher Watt from Bell Potter says the 'fundamentals have deteriorated significantly' for Cettire shares.
According to The Bull, the broker has placed a sell rating on the ASX retail stock.
Let's find out more.
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ASX retail share's valuation 'significantly slashed'
Recently, we covered in detail the demise of the Cettire share price since early 2024.
It's been a significant fall from grace for this ASX retail share, which was the No. 1 All Ords stock for price growth in FY23.
The online luxury goods retailer was on a fantastic trajectory back then and rose to a record of $4.90 per share on 1 March 2024.
Last month, the ASX retail share hit a 10-year low of 25 cents. That's a dramatic 90%-plus fall from its record high.
Watt explained his rating:
CTT's fundamentals have deteriorated significantly, with weak cash flow, negative EBITDA and near term risks from US tariff exposure and foreign exchange volatility.
Its valuation has been significantly slashed.
While the price now reflects some pessimism, we believe structural concerns around margin pressure remain.
In our view, the stock lacks conviction amid a speculative risk profile. There is no dividend.
Arthur Garipoli of Seneca Financial Solutions also has a sell rating on this ASX retail share.
Garipoli said Cettire's ongoing challenges were highlighted in a softer-than-expected trading update for 3Q FY25.
He also told The Bull:
The company experienced softening demand in its established markets, notably the United States, in the third quarter of fiscal year 2025.
The adjusted EBITDA loss was $4.7 million, including a $2.1 million foreign exchange loss.
What's the latest news from Cettire?
There was a fresh trading update for the ASX retail share released last month.
On 12 June, Cettire provided unaudited numbers for the 2025 financial year-to-date (YTD) ending 31 May 2025.
Cettire said sales revenue was $693.8 million for the 11 months, up 1.7% on the same period in FY24.
The FY25 YTD delivered margin was about 16% amid additional promotions and higher fulfilment costs over the year.
Cettire said its YTD FY25 adjusted EBITDA was $500,000, including an additional $2 million FX loss over April and May.
Cettire's Founder and CEO, Dean Mintz, said:
The operating environment within the global personal luxury goods market since Cettire's Q3 FY25 trading update has remained volatile, with a continued softening of demand in the Company's Established Markets, notably in the US.
Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy. As a result, elevated promotional activity persists across the market.
Mintz said the Cettire team was focused on geographic revenue diversification and improving the delivered margin percentage.
He noted that recent weaker demand in established markets was partially offset by more stable demand in emerging markets.
He said:
The Company's Emerging Markets continue to demonstrate a significant opportunity and Cettire is evaluating a further expansion in its footprint, having launched operations in Kuwait and Bahrain in recent weeks.
What's next for this ASX retail share?
Garipoli is worried that softer global demand and uncertainty over tariffs are not the only reasons behind the declining Cettire share price.
He said:
We're concerned company issues are possibly becoming more structural than cyclical, increasing uncertainty about its performance outlook.
