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While other luxury digital platforms are filing for bankruptcy (Matches), being acquired (Farfetch by Coupang) or up for sale (Yoox Net-a-Porter),<\/strong><\/b> Germany’s Mytheresa is regaining momentum<\/strong><\/b>, particularly since the start of 2024.<\/p>\n <\/p>\n Net sales at Mytheresa rose by 9.8% to 840.9 million euros in the 2023-2024 financial year<\/strong><\/b> ended June 30. This represents record sales<\/strong><\/b> for the NYSE-listed online retailer, which ships ready-to-wear, accessories, luxury lifestyle items and jewelry to over 130 countries.<\/p>\n <\/p>\n <\/p>\n While sales growth<\/strong><\/b> had been sluggish in the first half of the year<\/strong><\/b>, it picked up again (+13.8%) in the second.<\/strong><\/b> In the fourth quarter<\/strong><\/b>, sales rose by 9.7%.<\/strong><\/b> Mytheresa is thus faring better than the luxury goods industry<\/strong><\/b>, which is currently facing headwinds.<\/p>\n\n <\/p>\n Mytheresa also announced \u201cpositive profitability<\/strong><\/b> in terms of adjusted operating income and adjusted net income<\/strong><\/b>, with 10.6 million euros and 7.7 million euros respectively\u201d.<\/p>\n <\/p>\n Profitability<\/strong><\/b> also improved significantly in the second half of the<\/strong><\/b> fiscal year<\/strong><\/b>. Its adjusted EBITDA margin<\/strong><\/b> reached 4.3%<\/strong><\/b> in the second half of 2023-24, compared with 1.7%<\/strong><\/b> in the first half.<\/p>\n <\/p>\n Adjusted net income<\/strong><\/b> rose sharply in the fourth<\/strong><\/b> fiscal quarter<\/strong><\/b> to 4.5 million euros, compared with 1.1 million euros<\/strong><\/b> the previous year.<\/p>\n <\/p>\n Admittedly, all is not perfect, with a gross profit margin of 45.7% in 2024 , slightly below the 49.6% in 2023.<\/p>\n <\/p>\n <\/p>\n The annual net loss<\/strong><\/b> has widened to 30.7 million euros<\/strong><\/b>, almost double<\/strong><\/b> that of the previous year<\/strong><\/b> (17 million euros).<\/strong><\/b> The trend is in the right direction, however, with the fourth-quarter loss \u201cdeflating\u201d<\/strong><\/b> to 3.6 million euros, compared with 5.4 million euros in the last three months of the previous year…<\/p>\n <\/p>\n As a result, shares plunged by over 6%<\/strong><\/b> before the market closed on September 9, in the wake of the earnings release.<\/p>\n <\/p>\n Nevertheless, Michael Kliger, CEO of Mytheresa,<\/strong><\/b> and his teams were both \u201cvery satisfied\u201d with the \u201cresults for fiscal 2024 as a whole\u201d<\/strong><\/b> and with the \u201cperformance in the fourth quarter<\/strong><\/b>, as it enabled Mytheresa to continue its very positive momentum in the second half of fiscal 2024, with double-digit growth and profitability almost double<\/strong><\/b> that of the previous year\u201d.<\/p>\n <\/p>\n <\/p>\n In more detail, Michael Kliger has several reasons for satisfaction.<\/p>\n <\/p>\n The CEO mentioned \u201crecord AOV<\/strong><\/b> (average order value, which reached 703 euros), high customer satisfaction scores, strong growth in our Top Customer revenues and numerous<\/strong><\/b> extraordinary Top Customer activations<\/strong><\/b> in collaboration with brands\u201d, thanks to which he believes Mytheresa has \u201cstrongly reaffirmed\u201d its \u201cposition as the best digital platform for high-end luxury\u201d.<\/strong><\/b><\/p>\n <\/p>\n Customer satisfaction is measured by the Net Promoter Score<\/strong><\/b>, which reached 83% in the fourth quarter.<\/strong><\/b><\/p>\n <\/p>\n The platform’s logistical efforts<\/strong><\/b> partly explain this good score. Mytheresa closed its \u201chistoric\u201d warehouse in Heimstetten and moved this activity to Leipzig<\/strong><\/b> to \u201cimprove customer satisfaction and increase delivery efficiency\u201d. And to underline the \u201csuccessful ramp-up of operations at the Leipzig warehouse, with over 80% of all customer orders processed\u201d by the end of July.<\/p>\n <\/p>\n In an interview with Le Journal du<\/strong><\/b> Net on August 29, Gareth Locke, Mytheresa’s chief growth officer<\/strong><\/b>, also explains this customer satisfaction by the platform’s finely targeted strategy <\/strong><\/b>, \u201cunique among<\/strong><\/b> luxurymulti-brand players<\/strong><\/b> \u201d.<\/p>\n <\/p>\n <\/p>\n \u201cAt Mytheresa, we’ve been growing our sales for years because we have a unique model: we focus purely on luxury, not premium.<\/strong><\/b> We look for customers who regularly buy luxury. The audience we seek and target is the top 1% of luxury buyers with the highest purchasing power\u201d, he emphasized.<\/p>\n <\/p>\n It’s hardly surprising, then, that Mytheresa is particularly successful on the other side of the Atlantic<\/strong><\/b>, where this \u201cVIP\u201d profile is more prevalent, with sales up 25% <\/strong><\/b>over the year.<\/p>\n <\/p>\n To stand out from the crowd, \u201cMytheresa doesn’t list every available product, but rather curates them<\/strong><\/b>\u201d, a \u201cbias that attracts luxury enthusiasts looking for something new<\/strong><\/b>\u201d, explains Gareth Locke. In addition to its appeal to a selective target, this model is also virtuous in terms of profits, since \u201cunlike others\u201d, the German site \u201cdoes not need to make excessive use of promotional offers<\/strong><\/b> to interest\u201d its customers\u201d and \u2018sells essentially at full price<\/strong><\/b>\u2019.<\/p>\n <\/p>\n And margins are all the more juicy as \u201cthe selection of 250 brands\u201d<\/strong><\/b> offered by Mytheresa \u201c focuses on luxury brands<\/strong><\/b> such as Bottega Veneta, Brunello Cucinelli, Dolce & Gabbana, Gucci, Loewe, Loro Piana, Moncler, Prada, Saint Laurent, The Row, Valentino…\u201d.<\/strong><\/b><\/p>\n <\/p>\n <\/p>\n \u201cMytheresa creates a community for luxury enthusiasts.<\/strong><\/b> We create desirability throughdigital and physical experiences<\/strong><\/b>,\u201d Michael Kliger also emphasized.<\/p>\n <\/p>\n Last year’s \u201chigh-impactTop Customer events<\/strong><\/b> worldwide\u201d included two-day experiences in Italy with Brunello Cucinelli<\/strong><\/b> at Lago d’Orta and with Dolce & Gabbana<\/strong><\/b> in Capri, and a yacht cruise in Nice,<\/strong><\/b> France, with Valentino<\/strong><\/b>. The platform has also launched or pre-launched exclusive capsule collections in collaboration with Valentino, Brunello Cucinelli, Bottega Veneta, Saint Laurent, Loewe, Gucci<\/strong><\/b>…<\/p>\n <\/p>\n Another winning operation was the Pop Up Mytheresa x Flamingo Estate<\/strong><\/b> in East Hampton. In eight weeks, it attracted over 6,000 guests<\/strong><\/b>!<\/p>\n <\/p>\n <\/p>\n Michael Kliger is confident in<\/strong><\/b> this deliberately upmarket strategy in a less buoyant climate for luxury goods<\/strong><\/b>, as shown by the first 2024 results of the sector’s giants.<\/p>\n <\/p>\n As he told investors, he believes it is possible to win more market share<\/strong><\/b> in luxury online sales, by targeting \u201cthe big spenders who feel neglected by the other players<\/strong><\/b> \u201d.The executive did not, however, confirm a rumor that he was interested in buying the Yoox Net-a-Porter (YNAP)<\/strong><\/b> platform, which the Swiss group Richemont is seeking to divest.<\/p>\n <\/p>\n For the fiscal year<\/strong><\/b> just started last July and ending June 30, 2025,<\/strong><\/b> Mytheresa forecasts GMV and net sales growth of between 7% and 13%, and an adjusted EBITDA margin of between 3% and 5%.<\/strong><\/b><\/p>\n <\/p>\nSecond-half recovery<\/h2>\n
Increased annual loss<\/h2>\n
Many reasons for satisfaction<\/h2>\n
Top 1% of luxury buyers<\/h2>\n
A community of luxury enthusiasts<\/h2>\n
Confident in the future<\/h2>\n
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