Cettire's 96% Collapse Forces an Early Backer to Cut Losses

US import duties and business model concerns wiped out most of the online luxury retailer's value, forcing a founding investor to crystallise steep losses.

28 Aug 2026 · 2 min read

Cettire, once a darling among small-cap investors, has collapsed 96 percent from its peak as concerns about the viability of its business model, a slump in luxury sales and new US duties on cheap imported goods forced Regal Funds Management, an original backer since the company's 2020 IPO, to crystallise tens of millions of dollars in losses.

An early backer forced to sell at a steep loss

Regal Funds Management sold down its stake in online luxury goods retailer Cettire, dumping 10.6 million shares between 12 and 17 June, cutting its holding from 15.3 percent to 11.45 percent and crystallising tens of millions of dollars in losses. Regal had been an initial backer when Cettire listed at 50 cents a share in late 2020, paying an average price of $1.81 to accumulate its position. At one point, in March 2024, Regal's investment was worth as much as $220 million, but investor concerns about the viability of Cettire's business model, a slump in luxury sales, and the application of duties to cheap goods imported into the United States have weighed on the share price, which has tumbled 96 percent from its peak.

At one point, in March 2024, Regal's investment was worth as much as $220 million, but investor concerns about the viability of Cettire's business model, a slump in luxury sales and the application of duties to cheap goods imported into the United States have weighed on the share price, which has tumbled 96 per cent from its peak.

— Regal Funds Management, Article, June 2026

An earnings quality question emerges even in recovery

Cyan Investment Management's Fregde noted Cettire's headline adjusted earnings of $12.1 million, up sharply from about $300,000 the prior year, excluded unrealised foreign exchange losses and unspecified other items, with the unaudited comparable figure buried well into the presentation, questioning what those excluded items actually were.

Cettire's headline adjusted earnings of $12.1m (up sharply from about $300k the prior year) excluded unrealised foreign-exchange losses and unspecified 'other items,' with the unaudited comparable figure buried well into the presentation.

— Cyan Investment Management, Article, August 2026

What fund managers say they are watching next is resolution of the US duty policy on cheap imported goods that has weighed on Cettire's model, whether luxury sales demand recovers, transparency around the excluded items in adjusted earnings, and whether the stock finds a bottom after its dramatic collapse from peak.