In an online luxury market marked by the closure of Matchesfashion and the takeover of Farfetch, Mytheresa is on a roll. The Munich-based platform recently unveiled very solid results for the third quarter of 2023-24 and the extension of its partnership with Vestiaire Collective, one of the leaders in online circular luxury.
Does one man’s misfortune make another man happy?
In any case, Germany’s Mytheresa seems to be thriving in its market, that of online sales of luxury goods, while among its competitors, Matchesfashion threw in the towel last March, while Farfetch was rescued in early 2024 by Korea’s Coupang. “We see ourselves as one of the few winners in an otherwise difficult market environment. We are clearly gaining market share thanks to our above-average growth rates. We are benefiting from the consolidation of the landscape of luxury e-commerce players in a market that offers enormous growth prospects based on changing customer preferences in favor of digital channels,” emphasizes Michael Kliger, CEO of Mytheresa.
Launched in 2006 in Germany and acquired by the Neiman Marcus Group in 2014, Mytheresa is listed on the New York Stock Exchange and now distributes over 200 luxury brands (Bottega Veneta, Burberry, Dolce&Gabbana, Gucci, Loewe, Loro Piana, Moncler, Prada Saint Laurent, Valentino…) in 130 countries. In addition to ready-to-wear and accessories for the whole family, since 2022 Mytheresa has also offered a home decoration and lifestyle range.
A winning strategy
Its demanding strategy, based on maximum sales at full price and minimum promotions, seems to be working.
Michael Kliger and his team have every reason to be “very satisfied with the excellent performance in the third quarter of the current financial year, which ended on March 31”.
From January to March 2024, the Munich-based platform achieved “a sharp acceleration in sales growth, a strong expansion in revenues from top customers and a significant improvement in profitability”, while “business in the USA continues to be an important growth driver, with the strongest regional growth, an increased share of total business and a record number of Top Customers”.
Mytheresa’s total sales thus jumped by 17.6% to 233.9 million euros in the third quarter, when “only” 221.75 million euros had been expected.
GMV (gross merchandise volume), i.e. total sales volume, rose by 14.7% to 233.9 million euros, while the average shopping basket increased by 8% to an all-time high of 692 euros.
Profitability well ahead of the market
The site’s profitability also improved considerably, “clearly outperforming the market as a whole”, with a 12% increase in gross margin to 101.6 million euros, or 43.4%, and an adjusted EBITDA margin of 3.9%.
The strength of Mytheresa’s business model is reflected in “the strong growth (+17.0% in the third quarter) in the number of its Top Customers worldwide”. In the U.S., where Mytheresa is performing extremely well (with record GMV growth of +41.6%), its Top Customers even jumped by +48.3%!
Another august indicator: inventory growth (+11.9%) was lower in the third quarter and “significantly lower” than sales growth.
All these performances demonstrate, according to Michael Kliger, that “Mytheresa is not just a luxury e-commerce platform”. “We are creating a community of luxury enthusiasts and creating desirability through digital and physical experiences” believes the executive.
Extended partnership with Vestiaire Collective
To further enhance its desirability, Mytheresa has just announced the extension of its partnership, from May 28, with Vestiaire Collective, one of the world leaders in online second-hand luxury fashion, to all its customers in Europe, the UK and the USA.
The site is thus positioning itself more firmly on the second-hand market, a trend that is increasingly asserting itself in the luxury goods market.
At the time of its inauguration in June 2021, this collaboration enabled only Mytheresa’s best European customers to resell their luxury designer and house items second-hand via Vestiaire Collective.
Once authenticated and approved by Vestiaire Collective, the Mytheresa customer is rewarded with a Mytheresa store credit. More than 26,000 pieces of luxury ready-to-wear and accessories have already been sold under this scheme.
For Maximilian Bittner, CEO of Vestiaire Collective, the extension of its partnership with Mytheresa “represents an important step” in its “mission to promote circularity”. He believes that his company’s “expertise” “in authentication” and its “trusted platform will guarantee a seamless sales experience for all Mytheresa customers.”
Michael Kliger, Mytheresa’s CEO, himself said he was delighted to strengthen his partnership with Vestiaire Collective, “which is going from strength to strength”. “Offering our loyal customers a quick and easy way to give new life to their used designer pieces is very important to us,” he stressed.
Optimism
On the strength of its performance and initiatives, Mytheresa is optimistic for its full financial year, ending June 30. The site confirms its “forecasts for sales and net income at the lower end of the range” (i.e. +8% to 13%), and expects total gross profit “at the same level as last year”, with “an adjusted EBITDA margin of between 3% and 5%”.
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Read also > VESTIAIRE COLLECTIVE LAUNCHES CROWDFUNDING CAMPAIGN
Photos à la Une : Dolce & Gabbana x Mytheresa VIC event at Capri © Mytheresa
