Cettire Ltd (ASX: CTT) shares fell 26% to an all-time low of 25 cents after an update from the online luxury goods retailer.
The update was in response to a new Executive Order from the United States overnight.
The Order ends the de minimis exemption on goods manufactured in all nations outside the US, effective 29 August.
The de minimis exemption allowed goods with a dutiable value under US$800 to be imported into the US duty-free.
In May, President Trump ended the exemption for low-value goods from China and Hong Kong only.
Last night's order expands the end of the exemption to all nations.
This is a big problem for Cettire because a lot of its luxury goods, such as clothing and handbags, are made in European Union nations.
Back in April, when President Trump revealed the reciprocal tariffs, they included 20% on goods from the EU.
Cettire issued an update informing investors that 41% of its gross 1H FY25 sales were EU-manufactured goods sold to US customers.
However, it said its average order value in 1H FY25 was US$514 — well under the de minimis exemption price cap.
At the time, there was no change to the de minimis exemption.
This meant many of Cettire's EU products could continue to enter the US duty-free.
That's now changed.
Image source: Getty Images
What did the company say?
Cettire shares plunged today after the company said that shipments under the de minimis price threshold represented "the majority of sales to the United States" in May and June.
The company also said that in May and June, which were the first months in which the US imposed a 10% baseline tariff on most goods above US$800 per item from all nations, shipments to the US represented approximately 40% of Cettire's gross revenues.
In a statement, the company said:
Cettire is currently assessing the full implications of these tariff changes on the Company and its global operations, noting that several major luxury brands have indicated they would seek to increase pricing of luxury goods in the US market to mitigate possible tariff changes.
Cettire began identifying strategies to prepare for and mitigate potential changes to the US tariff regime throughout calendar 2024 and year-to-date 2025. The Company's localisation strategy has underpinned a continued broadening of the geographic revenue base, which Cettire expects to continue.
Tough 17 months for Cettire shares
Back in FY23, Cettire shares were riding high.
Cettire recorded the most share price growth of the 500 companies comprising the S&P/ASX All Ordinaries Index (ASX: XAO) in FY23.
The ASX retail stock has since endured a significant fall from grace.
The Cettire share price has declined from a record high of $4.90 on 1 March 2024 to a record low of 25 cents on 13 June, and again today.
A confluence of factors led to an eventual 95% decline in Cettire shares' value from their March 2024 peak.
The decline began in March 2024 after Cettire's founder and CEO, Dean Mintz, sold $127 million in shares.
In April, major investor LHC Capital told its clients it had sold its $362 million worth of Cettire shares.
In June, Cettire released an update saying "the operating environment within global online luxury has become more challenging".
Investors panicked and Cettire shares crumbled 49% on the day to $1.135 apiece.
Further trading updates in late 2024 revealed continually falling profits.
The half-year report in February 2025 revealed adjusted EBITDA of $12.1 million, down 54% compared to $26.1 million in 1H FY24.
The US reciprocal tariffs announcement on 2 April further pummelled Cettire shares.
Cettire's 3Q FY25 update on 23 April revealed an adjusted EBITDA loss of $4.7 million. This included a $2.1 million foreign exchange loss.
An FY25 trading update in June revealed an adjusted EBITDA of just $500,000 for the 11 months to 31 May.
