Guess which ASX 300 stock is defying short sellers and surging 17% today!

Investors are piling into this heavily shorted ASX 300 stock on Friday. But why?

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The S&P/ASX 300 Index (ASX: XKO) is down 0.2% today, despite the best efforts of this rocketing S&P/ASX 300 Index (ASX: XKO) stock.

The surging stock in question is online luxury goods retailer Cettire Ltd (ASX: CTT).

Cettire shares closed yesterday at 30 cents. In late morning trade on Friday, they are changing hands for 35 cents apiece, up 16.7%.

Cettire shares have been trading record lows amid a slowing luxury goods market and material import tax increases in the United States, the company's largest market.

Indeed, many investors expected the ASX 300 stock to continue its downward slide. Cettire kicked off the week as the tenth most shorted on the ASX with a short interest of 8.7%.

But following the release of the company's full-year financial results (FY 2025) this morning, those short sellers may have to rethink their positions.

Here's what's happening.

ASX 300 stock rebounds on resilient revenue

Cettire shares look to be racing higher after the company managed to delivered revenue broadly in line with FY 2024, despite what it described as challenging conditions with softening in consumer demand for luxury goods across most geographies.

Over FY 2025, the ASX 300 stock delivered gross revenue of $975.3 million and sales revenue of $742.1 million.

The company saw the number of its active customers decline by 5% over the 12 months to 657,000.

In a positive trend, Cettire's repeat customers in FY 2025 accounted for 68% of the company's gross revenue, up from 61% the prior year. And the average order value over the year increased by 3% to $820.

Still, earnings got walloped, with the ASX 300 stock reporting adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $300,000 during the year, down from $32.5 million in FY 2024.

The company said the earnings hit was primarily driven by the reduction in delivered margin, which slipped 4.4% amid increased promotional discounts during the year. Cettire's adjusted EBITDA was also impacted by a realised foreign exchange loss of $5.5 million.

On the bottom line, Cettire reported a statutory net loss after tax of $2.6 million, down from the $10.5 million profit in FY 2024.

The company ended the year holding cash of $37.1 million, with zero financial debt.

What did management say?

Commenting on the results sending the ASX 300 stock flying higher today, Cettire founder and CEO Dean Mintz said:

The global luxury market faced significant headwinds throughout FY25 contributing to a slowdown in demand, including persistent inflation and the flow through impact to reduced consumer spending as well as growing trade and geopolitical tensions.

Despite the challenging backdrop, we have remained focused on consistent execution against our plan to grow Cettire's share of the global personal luxury goods market profitably.

What's next for the ASX 300 stock?

Looking at what could impact Cettire shares in the year ahead, the ASX 300 stock said it had implemented a series of cost initiatives, including freight costs and merchant fees, to streamline its operations and position it for improved profitability in FY 2026.

Mintz noted:

As demand improves and we continue to invest in scaling the business, I remain incredibly confident in our ability to drive significant profitable growth in the future. We have an unparalleled business model which is well placed to navigate the challenges presented by current market conditions.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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