Shorted ASX All Ords share rallies 8% despite 'empty box' allegations

This online retailer is denying that it sells fake products on its site.

| More on:
a woman wearing fashionable clothes and jewellery checks her phone with a satisfied smile on her face in a luxurous home setting.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Cettire Ltd (ASX: CTT) shares are having a very strong start to the week.

In afternoon trade, the ASX All Ords share is up over 8% to $2.58.

Why is this ASX All Ords share charging higher today?

Investors have been buying the online luxury products retailer's shares today after it responded to another scathing media article in The Australian.

That article alleges that Cettire is selling non-genuine products on its platform and even delivered a customer an empty box.

However, Cettire has responded by stating that the media article "contains a number of claims and allegations that are untrue."

The ASX All Ords share also highlights that in recent weeks it has been the "subject of negative press articles that have sought to amplify the claims of parties who have openly taken short positions in Cettire shares and sought to profit from a short-term decline in the share price."

According to the most recent short seller data from ASIC, approximately 4.8% of Cettire's shares were held short.

Response

Judging by the way the ASX All Ords share is rallying today, it seems that many investors are satisfied with Cettire's response to the allegations.

Commenting on its supply chain and product quality, the company said:

Cettire has the utmost confidence in the sustainability of its supply chain and the authenticity of all products available and sold via its platform. […] Cettire only works with established distributors in the luxury supply chain. All of Cettire's suppliers source products directly from luxury brands and are a core part of brands' distribution channels.

The company highlights that it has not come across a single fake product from over 2 million orders placed on its platform. It adds:

Since commercial launch in 2017, Cettire has handled more than 2 million individual orders. There is not a single confirmed case of a non-genuine item being sold on Cettire's platform. None of the examples presented to Cettire by The Australian contain any verifiable evidence that a non-genuine item had been purchased via Cettire. Based on information provided by The Australian, the items used as examples have not been inspected by either Cettire or the relevant manufacturer to verify their authenticity.

Management also defended its customer experience and advised that it is "not aware of any ACCC investigation into its customer service practices."

The ASX All Ords share then concludes:

Cettire categorically rejects the entirely unfounded allegations contained in the article. Selective use of, and reliance on, a small number of unverified customer reviews when more than 60% of Cettire's revenues come from repeat customers and the Company is transacting over 1 million orders per annum, is an entirely unreasonable representation of Cettire's business. It is the Board's opinion that the article misrepresents the Company's supply chain, product quality and levels of customer satisfaction.

Should you invest $1,000 in Cettire Limited right now?

Before you buy Cettire Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Cettire Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Picture of a Domino's pizza.
Consumer Staples & Discretionary Shares

Domino's share price slides on major leadership shakeup

Domino’s announced a big leadership change this morning.

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine shares: Buy, hold, or sell? Here's Macquarie's take

What is Macquarie forecasting for Treasury Wine shares amid the CEO’s unexpected exit?

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Consumer Staples & Discretionary Shares

Guess which small cap ASX stock is crashing 22% on Friday

This share is having a tough finish to the week. But why? Let's find out.

Read more »

A man stands with his arms folded in front of banks of unused poker machines in a darkened gaming room.
Consumer Staples & Discretionary Shares

After a 13% slump, what does Macquarie think of Aristocrat shares?

Macquarie is wagering the gaming machine giant is still well positioned for growth.

Read more »

A man sitting at his desktop computer leans forward onto his elbows and yawns while he rubs his eyes as though he is very tired.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock is down 8% on CEO exit

The market is not responding well to the news.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
Consumer Staples & Discretionary Shares

Up 13% this year, could Coles shares still go higher?

Brokers think so, but the stock isn't cheap by any means.

Read more »

Woman checking out new iPads.
Consumer Staples & Discretionary Shares

Macquarie reveals top ASX stock picks in the consumer sectors

The top broker has revealed its favourite shares in the consumer discretionary and consumer staples sectors.

Read more »

A farmer pats a small beef cattle bovine on the head in a green field with trees in the background.
Consumer Staples & Discretionary Shares

Aussie beef shares bounce back from tariff lows

Global demand for Aussie beef surges as Trump’s trade war plays out.

Read more »