Cettire has made a surprise announcement of its third-quarter earnings which is an 88% increase in sales, and a margin greater than 20%.
👉 Background: Cettire is an ASX listed online luxury fashion retailer that’s been known for its temptingly low prices on luxury goods.
👉 What happened: Cettire has made a surprise announcement of its third-quarter earnings, which everyone expected to be released next month. Cettire saw an 88% increase in sales, and a margin greater than 20%.
👉 What else: Yet, investors weren't impressed, and Cettire’s share price has actually dropped since the announcement. Investors have lost faith in Cettire after media reports last month claimed it may not be paying all of its import taxes.
💡When investor confidence is broken, rebuilding it can take A LOT of effort. Investors expect accurate and transparent information when making investment decisions, but when that information is misleading, investors' trust is broken.
💡While Cettire brought home an A+ report card with $191 million of sales in the last quarter, and an 84% increase in active customers, these numbers don't mean much to investors if they're not convinced the company is trustworthy.
💡Similarly, Qantas is still trading below peak, even though it brought in a new CEO and revamped its frequent flyer program to rebuild trust with investors, after making record profits from unfriendly market behaviour.
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