Cettire's Response to ASX Query Letter

Cettire Limited (ASX: $CTT) has responded to ASX's query letter dated 25 June 2024, providing clarification on the FY24 metrics and the current market conditions. The company's Board of Directors has authorized and approved the responses to the questions raised by ASX.

Executive Commentary on FY24 Metrics and Market Conditions

In response to ASX's query, Cettire has clarified that the metrics provided in the Q1 and Q3 updates were historical and not necessarily considered individually material. The FY24 Update was released to comply with continuous disclosure obligations, taking into account ASX's guidance in Guidance Note 8 regarding earnings surprises. Cettire has not previously provided advance guidance on these metrics and did not consider it necessary for continuous disclosure purposes to do so in the FY24 Update. The company's current estimate of delivered margin for FY24 is in the range of 20.4% to 21.1%. Additionally, Cettire's estimate of marketing to sales revenue for FY24 is in the range of 10.0 to 10.5%. The company also provided evidence supporting the softening demand trends and increased promotional activity in the luxury goods market.

Summary of Cettire's Response and Outlook

Cettire's response to ASX's query letter provides clarity on the FY24 metrics, emphasizing that the Q1 and Q3 updates contained historical information and were not necessarily considered individually material. The company released the FY24 Update to comply with continuous disclosure obligations and to address potential earnings surprises. Cettire's current estimate of delivered margin for FY24 is in the range of 20.4% to 21.1%, while the estimate of marketing to sales revenue for FY24 is in the range of 10.0 to 10.5%. The company also cited industry reports and media articles to support the softening demand trends and increased promotional activity in the luxury goods market. Cettire confirmed its compliance with the Listing Rules and the authorization of responses by its Board of Directors. The outlook indicates a cautious approach in light of the challenging operating environment within the global online luxury market.