Luxury fashion retailer Mytheresa has announced positive Q4 and full-year results, demonstrating an increase in sales and continued profitability. Despite facing challenging market conditions, the company’s focus on high-spending customers and investments in growth have paid off, leading to increased shareholder satisfaction and a rise in share price.
In Q4, Mytheresa’s gross profit improved by 5.4% to €99.9 million, and for the full year, it increased by 7.8% to €382.6 million. The company also experienced a 14.5% growth in general merchandise value (GMV) to €855.8 million over the year, with a 10% growth in GMV to €222.2 million in Q4. Furthermore, quarterly net sales saw a significant year-on-year increase of 16.5% to €203.8 million.
Adjusted EBITDA, the measure of profitability, reached €7.4 million in Q4 with a margin of 3.6%, compared to €13.8 million and 7.9% in the previous year. Q4 also saw positive adjusted operating income of €4.2 million and adjusted net income of €0.8 million, although the latter figure declined by 93.8% compared to the previous year. Annual net sales increased by 11.4% to €768.6 million, while adjusted EBITDA amounted to €41.1 million, down from the previous year’s figure of €66.3 million. Adjusted net income for the year reached €20.3 million, reflecting a decrease of 56.6%.
Mytheresa’s success can be attributed to several strategies, including hosting special events and product launches, as well as opening a physical pop-up store in East Hampton that attracted 3,200 selected guests and generated brand awareness in an important market. The company has also prioritized maintaining full-price sales, contributing to achieving a record average order value of €654 in FY23. Additionally, Mytheresa has experienced strong customer growth of 9.6% and a significant increase in top customers, with a 24.2% rise in Q4. By targeting high-spending shoppers, Mytheresa has seen a 30% growth in business with these customers in terms of GMV, making up 39% of the company’s total business.
CEO Michael Kliger expressed his delight with Mytheresa’s outstanding fiscal year 2023 results, highlighting the double-digit growth across all geographies and the company’s ability to maintain profitability in a challenging market environment. The focus on high-spending, wardrobe-building top customers has been a key factor in this success, with a 30% GMV growth in business with these customers in FY23. Mytheresa’s strategic focus on its core customer base, investments for growth, and commitment to maintaining full-price sales have all contributed to its strong performance.
(Relevant links: Mytheresa, Online Fashion Retail)
