Luxury electronic tailor Mytheresa reported second-quarter results on Thursday and said overall commodity value (GMV) rose nearly 8%, with “high returns despite significant macroeconomic difficulties”. However, while it has remained profitable in tough times, the company’s overall earnings have declined.
GMV grew by 7.8% to 215.9 million euros, which translates to 13.7% growth in the first half of the year compared to the same period last year. GMV’s quarterly jump was supported by a 12.7% gain in the US and a total GMV market share there growing to 16.9%.
While GMV growth was in double digits, net sales increased only 1.3% to 190.1 million euros. However, it saw gross margin increase 140 basis points to 54.8% due to increased sales from the Managed Platform Model (CPM) generates a 100% gross margin with no cost of sales.
Adjusted EBITDA is 17.7 million euros, representing an adjusted EBITDA margin of 9.3%. But that is compared with 28.3 million euros a year ago. And adjusted operating income fell to 14.9 million euros from 26 million euros. Meanwhile adjusted net income is 11 million euros. A year ago it was 18.9 million euros, up from 14.8 million euros a year earlier. The company did not give any explanation for the collapse.
Despite the lower numbers, profits were supported by the number of ‘top customers’ that outstripped the overall growth rate with 25.3% growth in the second quarter and 26.2% in the first half. The company says “high-impact top customer activation [were] organized in Europe, USA and the Middle East with truly ‘money can’t buy’ experiences”.
CEO Michael Kliger cited the company’s “clear focus on true high-end, closet-building customers, not the occasional, aspirational luxury shopper, the who are more likely to be negatively affected by the economic downturn”.
Overall, the e-retailer saw an average GMV increase for all customers of 1.9% in Q2, “showing quality customer acquisition,” and they reported “First-time buyers steady in a quarter with over 120,000 new customers.”
Mytheresa’s activity was also boosted by the launch of exclusive capsule collections and pre-launch with Loro Piana, maximum demon lord, Etro, Row, Oscar de la Renta, Stella McCartney, Christian Louboutin, Givenchy and more. And it has seen a “strong expansion” in the field of ski wear with capsules and exclusions by Dolce Gabbana companyKhaite, gucci and Pucci. Plus the launch of Moncler Grenoble exclusive products with a “high-impact shoppable video campaign shot by Mytheresa in Crans Montana with professional skiers”.
The company also confirmed its previous guidance for the full year, saying the GMV would be between €865 million and €910 million, representing growth of between 16% and 22%. Net sales will be between 755 million euros and 800 million euros, representing a growth of 10% to 16%. Adjusted EBITDA must be between €68 million and €76 million with an adjusted EBITDA margin between 9% and 9.5%.
Michael Kliger concludes: “We have built a flexible and agile business model. We operate globally, work across multiple luxury categories, focus solely on full-price sales, and we have a high rate of cost volatility. This allows Mytheresa to be highly profitable even at a time of slower growth. All of this, coupled with a consistently high level of service and innovative products, clearly make us one of the few winners in the consolidating luxury e-commerce space. ”
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