LONDON — Robust demand in the U.S. and an uptick in the number of big-spending customers fueled top- and bottom-line growth at Mytheresa in the second fiscal quarter ended Dec. 31.
Net income rose 28 percent to 18.9 million euros, while net sales were up 18.3 percent to 187.6 million euros in the three-month period.
The company maintained its full-year guidance for net sales, which will range between 700 million euros and 720 million euros.
It added that the gross merchandise value of goods sold will rise 23 to 26 percent in the full fiscal year ending June 30, compared with original guidance of 22 to 25 percent growth.
Markets welcomed the news, and shares closed up 13 percent at $16.00 on the New York Stock Exchange.
Mytheresa chief executive officer Michael Kliger said the quarter saw a “record number of first-time customers” and an increased spend from existing ones as people emerged from lockdown and began socializing outside the home once again.
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Kliger said sales growth in the second quarter was “organic” and not reliant on discounting.
He added that future growth would also come from full-price sales, rather than acquisitions. Kliger said that while Mytheresa was not relying on M&A for growth, it still was “very well-placed” to make an acquisition, should an interesting opportunity arise.
He said there were no immediate plans to move into beauty either. The retailer has been testing the sector with partners such as the Estée Lauder Cos., and has another collaboration planned for later this year with a French brand. “We still want to understand it,” Kliger said.
There is an opportunity for Mytheresa to expand into hard luxury, he said, but the retailer has no intentions of adding stock keeping units or brands “from the non-luxury end.”
“We believe there are still massive growth opportunities for Mytheresa driven by the shift of luxury consumers to online and untapped geographic as well as category potential,” said Kliger, noting that by 2025 more than 30 percent of personal luxury goods spend will be online.
He believes Mytheresa’s strength lies in allowing luxury brands “to engage with high-value, multibrand customers who cannot be easily reached with monobrand offerings.”
The U.S. market has been on a consistent growth trajectory, Kliger said.
The U.S., a relatively new market for Mytheresa, delivered the strongest net sales growth in the three-month period, thanks partly to teams of personal shoppers that have been deployed in key markets. Net sales were up 74.2 percent compared with the corresponding period last year.
“We are excited to reach an increasing number of customers across the U.S. with particular strength in Florida, Texas and California, which are emerging as major markets for luxury demand. We see a long runway for Mytheresa growth in the U.S.,” Kliger said, adding that occasionwear, and “unique, special pieces” had sold well in the period, and that U.S. sales were also being driven by “new, young wealth.”
China also delivered “above average” performance and Kliger said the plan was to strengthen Mytheresa’s presence in that market this year.
Mytheresa also saw a record number of new, first-time buyers in one quarter and “continued positive repurchase rates” from newly acquired customer cohorts.
The number of top-spending customers grew by nearly 40 percent in the period. Top customers have an average basket of 1,000 euros, and their annual spend is 16,000 euros. They account for roughly 3 percent of Mytheresa’s customer base and generate one-third of total revenue.
Mytheresa said the second quarter saw a 2.3 percent increase in average gross merchandise value spend per top customer.
Inflation, Kliger added, has not been an issue for Mytheresa customers so far. He described the site’s shoppers as “price insensitive” and said Mytheresa has not seen any evidence of price increases leading to lower demand.
During the three-month period, Mytheresa sought to deliver those customers a number of exclusives, including capsule collections and pre-launches from brands including Tom Ford, Givenchy, Ami Paris, Christian Louboutin and Bottega Veneta.
It has rolled out its Curated Platform Model to six brands with positive business impact. The model allows Mytheresa greater access to brands’ warehouses so that it can deliver and restock items as quickly as possible.
The company has begun building a new warehouse at Leipzig Airport, in Germany, which is expected to improve delivery times “significantly.”
Adjusted operating income was 26 million euros, compared to 20.1 million euros in the prior-year period.
Adjusted EBITDA was 28.3 million euros, compared with 22.1 million euros in the prior-year period. The adjusted EBITDA margin rose to 15.1 percent from 14.0 percent.
Mytheresa noted that growth and profitability had been so robust that the adjusted EBITDA target set for fiscal 2023 will be reached a year early, in fiscal 2022.
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