The Online Retailer Continues to Stabilize Following a Period of Acquisition and Growth
Online luxury retail platform Mytheresa reported profitable operations during its fiscal first quarter, thanks to the strong U.S. market and large sales among its top spenders.
“Our profitability has improved significantly versus the previous year,” said Mytheresa’s CEO, Michael Kliger. “There’s been a continuation of improvements in our business. We are very pleased.”
Adjusted net income rose to 5.4 million euros in the three-month period ended Sept. 30, from a loss of 3.3 million euros in the same period last year. The EBITDA margin reached 1.4 percent, compared to negative 0.6 percent last year, an increase of 200 basis points.
Despite reporting profitability, Mytheresa did incur a net loss of 23.5 million euros, primarily due to more than $20 million in legal and other costs associated with the pending purchase of Yoox Net-a-porter from Compagnie Financière Richemont. Other costs included impairment loss on property and equipment, and share-based compensation.
Net sales grew 7.6 percent to 201.7 million euros in the quarter, up from 187.5 million euros in the previous-year period. The gross profit margin increased 150 basis points to 43.9 percent from 42.4 percent last year, reflecting what Kliger said was “reduced promotional intensity versus last year.” The average order size increased by 9 percent to 720 euros, marking a record high for the Munich-based company.
“Our geographic profile is more beneficial, with the U.S. representing 20 percent, and Europe, 50 percent so 70 percent of our business sits in healthy regions. We are far less exposed to China and Asia than some of the big luxury groups,” said Kliger. “The U.S. continues to be super strong where we have double-digit revenue growth — 14 percent plus.”
Mytheresa’s global business with its top spenders, who represent 4 percent of the company’s customer base, grew 18 percent. In the U.S. alone, the top customer business grew by 41 percent. Areas of high sales include occasional ready-to-wear items, including dresses, tailored clothing and shoes, particularly amongst top spenders.
Kliger said Mytheresa will acquire 100 percent of Yoox Net-a-porter group from Richemont in exchange for 33 percent of Mytheresa’s share capital. Mytheresa will also receive YNAP’s 555 million euros in cash and a six-year revolving credit facility of 100 million euros to finance YNAP’s general corporate needs. “We continue to expect that the closing will happen in the first half of 2025,” said Kliger.
“We truly believe in the power of the brands, but there is stuff to be done,” added Kliger, referring to the difficulties Yoox Net-a-porter has been experiencing with its operations. “There is some fixing to be done… The other part that is also interesting for us is that Richemont is taking a significant share stake (33 percent) in Mytheresa. That is a strong vote of confidence in Mytheresa.”