Mytheresa makes strides in Q4, will "remain agile" in face of volatile backdrop

By

Sandra Halliday

Published
Sep 15, 2022

Mytheresa’s Q4 and full-year results on Thursday showed accelerating growth in the final quarter of its financial year which meant general merchandise value (GMV) growth of 21.3% for the full 12 months. It also saw two-year GMV growth of 66.3% and record profitability of 9.6% adjusted EBITDA margin.

The company said it sees itself as “perfectly positioned to take advantage of the ongoing shift to online of luxury consumers, the continued consolidation in the digital luxury sector and the global market share expansion opportunities”. 

For Q4, the company reported GMV growth of 18.2% to €196.7 million. The net sales rise of 7.7% to €174.8 million was slower than the GMV increase. This was due to the planned transition of brands to the Curated Platform Model (CPM) and the subsequent effect of recording the platform fee as net sales.

But the firm’s operations are clearly headed in the right direction and gross profit growth was 22.4%. It saw an increase of 650 basis points in the gross profit margin to 54.2%, driven by an increase in sales from CPM generating 100% gross margin.

Adjusted EBITDA rose 22.7% to €13.8 million and the adjusted EBITDA margin rose 100 basis points to 7.9%. The adjusted operating income margin was 6.5%, up from 5.6%, and the adjusted net income margin of 6.7% was up from 4.7% in the prior year period.

For the 12 months, GMV growth was 21.3% to €747.3 million and net sales rose 12.7% to €689.8 million.

Gross profit rose 23.7% and adjusted EBITDA was up 20.7% to €66.3 million.

FAST GLOBAL GROWTH

The company said its strong figures came as it saw rapid global GMV growth in the fourth quarter and above average GMV growth once again in the US (which was up 28%).

It was helped by a record number of high-impact top customer events held across Europe and the US and the successful launch of the new LIFE category with home décor and other lifestyle products “opening up future growth potential”.

It also launched an unprecedented number of exclusive capsule collections and pre-launches in collaboration with labels including Dolce & Gabbana, Dries van Noten, Pucci, Bottega Veneta, Gucci, Zimmermann, and Valentino.

Its continued rollout “with strong financials” of the CPM also saw six brands live.

Mytheresa added that it’s seeing strong active customer growth with a “solid number” of first-time buyers in Q4 (over 120,000 customers). Repurchase rates of new customer cohorts acquired recently are also showing positive trends. 

And it’s enjoying strong growth in the number of top customers, up 22.1% in Q4, as well as an increase in average GMV for all customers of 5.8%.

OUTLOOK

The company is now in Q1 of the full year ending June 30 2023 and expects GMV in the range of €865 million-€910 million for the year, representing 16%-22% growth. Net sales should be €755 million-€800 million, or 10%-16% growth.

Gross profit should be €410 million-€435 million, up 16%-22% and adjusted EBITDA should be in the range of €68 million-€76 million.

CEO Michael Kliger said: “Our strong financial results for fiscal year 2022, as well as for the fourth quarter, put us at the very top of performance of digital platforms. The results prove the unique positioning and business model of Mytheresa. 

“We showed strong growth and profitability against a backdrop of economic and geopolitical challenges. We remain very confident that the high-end digital luxury sector combined with our superior business model will provide excellent results for our investors in the years to come. We will, of course, remain very agile in reacting to external developments and their potential impact on our business.”