The Cettire (ASX:CTT) share price is plunging 14% today. What’s going on?

The ASX share market certainly isn’t having a great day so far this Tuesday. At the time of writing, the All Ordinaries Index (ASX: XAO) has lost a depressing 1.27% and is sitting at 7,411 points. But that’s nothing compared to the Cettire Ltd (ASX: CTT) share price.

Cettire shares are currently trading at $2.00 each, down a nasty 13.79% so far today. So what could be behind this steep fall for the online luxury goods retailer?

Well, unfortunately, it’s not too clear. There hasn’t been any news or announcements out of the company today. Or indeed nothing of note since Cettire announced it was partnering with the Chinese e-commerce company JD.com Inc (NASDAQ: JD) earlier this month.

Before that, Cettire posted its half-year earnings on 3 February. These showed that the company was still growing revenue at a hefty clip (192% increase) but also showed a widening loss on the bottom line.

So let’s look at what the broader market is doing. Cettire’s sector, consumer discretionary shares, is currently the worst-performing sector on the ASX boards today. At the time of writing, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down by more than 2%. Most retailers in this sector have (as you would expect) seen steep falls today. Premier Investments Limited (ASX: PMV) shares have lost close to 3% while Temple & Webster Group Ltd (ASX: TPW) shares are down by more than 3%.

Cettire share price feels the burn…

But Cettire’s fall is far larger, so could there be anything else going on?

Well, looking at Cettire’s share price, we can see that this company has been on an incredible run in recent years. Cettire was trading at roughly 50 cents a share back in December 2020. Today’s share price of more than $2 means that this company is still up a very pleasing 302% since then. And Cettire shares remain up almost 100% over the past 12 months.

But that doesn’t mean more recent times haven’t been unkind to the Cettire share price. This is a company that remains down 14.5% over the past 6 months and a horrible 44% year to date.

So perhaps investors see the Cettire share price as having more hot air than most, which might be why it has been losing so much steam in recent months. Or perhaps investors have just been supremely disappointed by Cettire’s recent earnings and are punishing the company for it. Whatever the reason, I’m sure Cettire shareholders are hoping that the next two months prove to be more successful than the last two.

At the current Cettire share price, this company has a market capitalisation of around $762 million.

The post The Cettire (ASX:CTT) share price is plunging 14% today. What’s going on? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cettire Limited and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended JD.com. The Motley Fool Australia has recommended Cettire Limited, JD.com, Premier Investments Limited, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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