Trump slump smashes major Aussie company
The company started off the year with a market capitalisation of nearly $600m, but a precipitous 81 per cent decline in its share price since January 2 value means it is now worth just $115m.
Moomoo market strategist Jessica Amir warned 'serious alarm bells' were ringing about the survival of the company, which sells high-end products worldwide through its online platform.
'It's safe to say there are some serious questions about a potential receivership,' she said.
In a trading update from June 12, Cettire announced just $500,000 in earnings for the financial year ending May 31, though sales revenues lifted 1.7 per cent to $693.8m. Luxury retailer Cettire is leading a slump in ASX-listed fashion stocks this year. Supplied Credit: Supplied City Chic has warned US tariff policies could impact its earnings. Supplied Credit: Supplied
The company now has $45m left in cash, down from $79m in March.
Cettire founder and CEO Dean Mintz blamed trade uncertainty around US tariff policy in part for the difficult trading environment.
'Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,' he said.
'As a result, elevated promotional activity persists across the market.'
While Cettire's share price is tanking, there are avenues the company could pursue to avoid any fall into administration, for example a capital raise or taking on a new debt facility.
It is not the only ASX-listed apparel business to record a disturbing slump in value this year.
Footwear retailer Accent Group has slumped 45 per cent, while KMD Brands, which sells the Kathmandu and Rip Curl brands, has tumbled 33 per cent.
City Chic has retreated 26 per cent.
Graphic Aussie Fashion Stocks - Jan 2-June 23 (2)
At the start of the year, KMD was worth about $300m. Now it is worth less than $200m.
Some of the retailers point to US President Donald Trump's tariff shock for creating additional challenges in their businesses.
In a trading update from June 19, KMD estimated tariffs would strip about $1m in earnings from the company across the 2025 financial year.
'The (company) continues to closely monitor the fluid US tariff situation and it remains too early to estimate the impact on consumer demand in the US,' the company said.
'Given the uncertainty in the US market, agility remains the (company's) main priority heading into 2026.'
In an update from May 5, City Chic has warned some 20 per cent of its revenue was generated in the US and 90 per cent of its products were sourced from China, a big target for tariffs. KMD Brands, which owns Kathmandu, has warned tariffs could strip out $1m in earnings for FY25. NewsWire / Gaye Gerard Credit: News Corp Australia
'Due to the tariff situation and its potential impact on consumer demand, USA sales expectations have been reduced for FY26,' the company said.
But global trade chaos is not the only pressure mounting on fashion stocks, Ms Amir cautioned.
Rising oil and electricity prices are also eating away at consumer spending power.
'The things we're paying every quarter and every month are far higher than they were,' she said.
'Petrol costs are up markedly and that's because the oil price is up.
'It means you've got less money left over to buy things like a luxury designer handbag from Cettire, or that Rip Curl jumper.
'You might want to get out your needle and thread and sow up your Kathmandu. You're not exactly going to go out and buy another one.'
The benchmark ASX200, which tracks the 200 largest companies on the Australian stock market, has advanced 3 per cent year-to-date.
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His presence is expected to spark protests across the country, with Scottish Police being forced to request aid from other forces to help increase manpower for the trip. Trump is set to spend time at his golf resort in Turnberry on Scotland's west coast, before heading to his sprawling golf property 320 kilometres away near Aberdeen in the east. But it won't be all play and no work. He will meet British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen who both want to talk about trade. Trump said Washington was also working hard on a possible trade deal with the EU, which he said was very keen to make a deal. EU diplomats say a deal could result in a broad 15 per cent tariff on EU goods, mirroring a framework agreement with Japan and half of the 30 per cent tariff Trump is threatening to impose by August 1 As part of the visit, he will open a second 18-hole course on the Aberdeen property named in honour of his mother, Mary Anne MacLeod, who was born and raised on a Scottish island before emigrating to America. The White House has described the trip as "private". The trip shows how the president has become increasingly comfortable intermingling his governing pursuits with promoting his family's business interests. Trump has described Scotland as a "very special place" and made a similar trip there in 2016 during his first run for the presidency, but he will not necessarily get a warm welcome. About 70 per cent of Scots have an unfavourable opinion of Trump, while 18 per cent have a favourable opinion, an Ipsos poll in March found. His visit requires a major police operation that will cost Scottish taxpayers millions of pounds as protests are planned over the weekend. The union representing officers is concerned that they are already overworked and will be diverted from their normal duties. The overseas travel comes as Trump faces the biggest domestic political crisis of his second term in office. Allies and opponents alike have criticised his administration's handling of investigative files related to disgraced financier and sex offender Jeffrey Epstein's criminal charges and the circumstances of his 2019 death in prison. The issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. 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