Online luxury retailer Cettire has reported a $2.6 million loss for FY25, hit by soft global demand, heavier discounting, and foreign exchange losses, despite keeping revenue flat.

The Melbourne-based company’s loss follows a $10.5 million profit the previous year. Margins shrank, marketing spend was pared back, and active customer numbers dipped, underscoring the tougher climate for online luxury retail.

Sales revenue was steady at $742.1 million, but adjusted EBITDA fell to just $300,000, from $32.5 million in FY24.

With traditional luxury markets like the US under pressure, Cettire accelerated its expansion into Asia and the Middle East, which now account for 37 per cent of gross revenue. New launches in Kuwait and Bahrain have helped drive double-digit growth in emerging markets.

“The company has already made considerable progress in growing and diversifying its supply chain, improving its technology and adding to its exceptional team,” said Cettire’s founder and CEO, Dean Mintz. 

“As our localisation initiatives gain traction, the revenue base will continue to geographically broaden, which in turn enhances Cettire’s ability to withstand different challenges.”

Cettire also lifted its in-stock inventory to 270,000 products and grew its global team, with a focus on technology and commercial operations.

Looking ahead, the company said that early FY26 trading is showing promising signs, with positive adjusted EBITDA in July and modest growth in gross revenue.