The Retailer Reduced Losses and Saw Income Growth, Sharing a Positive Outlook Moving Forward
German luxury fashion retailer Mytheresa has reported significant top- and bottom-line growth for its fiscal fourth quarter and full year, with expectations to maintain its forward momentum. The company effectively reduced its bottom-line loss from 5.4 million euros in the previous year to 3.6 million euros in the fiscal fourth quarter, which concluded on June 30.
The company’s adjusted net income for the same period saw growth as well, rising from 1.1 million euros in the year-ago period to 4.5 million euros. Factors contributing to these adjustments include one-time effects such as share-based compensation, legal costs, and transaction-related costs.
There was a rise in fiscal fourth quarter net sales by 9.7 percent, from 203.4 million euros in the fourth quarter of 2023 to 223.2 million euros. The gross merchandise value increased by 7.8 percent, growing from 221.9 million euros in the year-ago period to the current 239.3 million euros.
The company’s CEO Michael Kliger shared, “We’ve been busy, and successful. The key message is that the momentum we saw in fiscal third quarter continued into the fourth quarter.” He further noted that the successful second half of the year saw an adjusted profit margin of 4.3 percent up from 1.7 percent in the first half of the fiscal year. Kliger also confirmed that there’s more momentum going into the new fiscal year.
For this fiscal year, the company is now projecting a net sales growth of 7 to 13 percent, and an adjusted EBITDA of 3 to 5 percent. Kliger also highlighted that despite uncertainties and macro headwinds, the U.S. remains a strong market for the company.
Mytheresa experienced strength in U.S. sales, seeing a growth of over 20 percent in the last quarter, while Europe recorded a growth of 11 percent. However, Asia continues to struggle according to Kliger.
For the full fiscal year, adjusted net income came in at 7.7 million euros, a decline from the previous year’s 18.4 million euros. Nevertheless, net sales grew by 9.8 percent from 766 million euros in 2023 to 840.9 million euros, with gross merchandise value rising 7.1 percent and gross profit margin at 45.7 percent compared to the previous year’s 49.6 percent.