German luxury e-tailer, Mytheresa, has reported exceptional sales growth during the second quarter of 2020, defying the challenges posed by the pandemic. The company experienced a remarkable sales increase of 32.9%, driving its net sales to €158.6 million. Notably, Mytheresa’s success lies not only in its sales growth but also in its robust profitability. The company reported an impressive net income of €15.7 million, compared to €6.3 million in the same period last year. Additionally, it reported adjusted EBITDA of €22.1 million, up from €12.9 million in the prior year, and operating income of €16.6 million, up from €7.3 million. The company’s adjusted EBITDA margin rose to 14%, with a gross margin increase of 60 basis points to 49.5%.
One of the key factors contributing to Mytheresa’s success is its focus on active customer growth. The company observed a 28.2% increase in active customers, reaching a total of 569,000. Furthermore, Mytheresa attracted a record number of first-time buyers, with over 100,000 new customers making their initial purchase during the quarter. The company also experienced a surge in daily shipments, handling up to 11,000 parcels in a single day.
Several factors have contributed to Mytheresa’s high sales and customer growth. Firstly, the closure of physical stores due to lockdown restrictions drove consumers to seek luxury products online. Mytheresa, with its curated offering of high-end luxury items, successfully captured these online shoppers. Additionally, Mytheresa’s unique business model, which prioritizes inspiration over aggregation, resonated with luxury consumers. By leveraging advanced technologies and providing a superior in-house managed service experience, the company sets itself apart in the market.
Beyond its impressive second-quarter results, Mytheresa also posted remarkable figures for the first half of the year. Net sales during this period increased by 30.4% to €285 million, while gross margin rose by 20 basis points to 48.2%. Adjusted EBITDA increased to €32.6 million from €17.2 million, and net income witnessed a substantial leap to €25.4 million, compared to €2 million in the same period last year. Adjusted net income more than doubled to €20.1 million from €10 million.
Mytheresa’s success can also be attributed to its continuous expansion and innovation efforts. The company expanded its menswear business, with net sales share exceeding 10% in December. Mytheresa also organized digital events targeting top customers, collaborating with renowned brands and influencers. In fact, the company even held a physical VIC (Very Important Customer) event in Shanghai in December. Exclusive capsule collections and pre-launches in partnership with luxury brands like Valentino, Moncler, and Dolce & Gabbana have further bolstered the company’s offerings.
Looking ahead, Mytheresa maintains an optimistic outlook for its future prospects. While some of the tailwinds from the pandemic may slow down as physical stores reopen, the company still anticipates strong results for the full fiscal year. It projects sales growth between 26% and 29%, amounting to €565 million to €580 million. In terms of adjusted EBITDA, Mytheresa expects a range of €45 million to €48 million, representing growth between 27% and 36%.
Overall, Mytheresa’s impressive sales growth and strong profitability underscore the success of its business model and its ability to capture the online luxury market. With a focus on active customer growth, curated offerings, and innovative initiatives, Mytheresa is well-positioned for continued success in the future.
Useful links:
1. Mytheresa
2. The Guardian – Mytheresa
