Mytheresa, the luxury e-tailer, has released its Q2 results, revealing an almost 8% increase in general merchandise value (GMV). Despite facing challenging macro-economic conditions, the company maintained strong profitability. The GMV reached €215.9 million, marking a 13.7% growth for the first half of the year compared to the previous year. This growth was fueled by a 12.7% increase in the US market, which accounted for 16.9% of the total GMV.
While the GMV growth was nearing double digits, net sales only saw a modest rise of 1.3%, reaching €190.1 million. However, the gross profit margin rose by 140 basis points to 54.8% thanks to the success of the Curated Platform Model (CPM), which generates a 100% gross margin with no sales costs. The adjusted EBITDA was recorded as €17.7 million, with an adjusted EBITDA margin of 9.3%. However, this represents a decrease compared to the previous year’s figures of €28.3 million. The adjusted operating income also decreased to €14.9 million from €26 million, and adjusted net income was €11 million, compared to €18.9 million the previous year.
Despite the decline in earnings, Mytheresa managed to maintain profitability due to a significant increase in the number of top customers. In the second quarter, the number of top customers increased by 25.3%, surpassing overall growth. This growth was attributed to high-impact customer activations in Europe, the United States, and the Middle East, offering exclusive experiences that money can’t buy. CEO Michael Kliger emphasized the company’s focus on high-end luxury customers with strong purchasing power, rather than occasional luxury shoppers who are more likely to be affected by an economic downturn.
In addition to attracting top customers, Mytheresa also observed an increase in the average GMV for all customers, showcasing the quality of customer acquisitions. The company reported over 120,000 new customers in one quarter, indicating a solid number of first-time buyers. Mytheresa’s success can also be attributed to its collaborations with renowned luxury brands. Exclusive capsule collections and pre-launches with brands like Loro Piana, Max Mara, Etro, The Row, Oscar de la Renta, Stella McCartney, Christian Louboutin, and Givenchy boosted the company’s operations. Expansion in the skiwear category was also strong, with exclusive collections from Dolce & Gabbana, Khaite, Gucci, and Pucci. Additionally, Mytheresa collaborated with Moncler Grenoble on an exclusive product line, accompanied by a high-impact shoppable video campaign featuring professional skiers.
Looking to the future, Mytheresa has reaffirmed its previous guidance for the full year. The company expects GMV to range between €865 million and €910 million, representing a growth of 16% to 22%. Net sales are projected to range from €755 million to €800 million, with a growth rate of 10% to 16%. Adjusted EBITDA is expected to be between €68 million and €76 million, with an adjusted EBITDA margin of 9% to 9.5%.
Michael Kliger concluded by stating that Mytheresa has established a resilient and adaptable business model. The company’s global presence, focus on selling at full price, and high degree of cost variability enable it to deliver strong profitability even during periods of slower growth. With its commitment to providing high-quality services and creative productions, Mytheresa solidifies its position as one of the few winners in the consolidating luxury e-commerce sector.
Links:
1. Mytheresa
2. Reuters Article
