Luxury multi-brand digital platform Mytheresa Group saw strong sales growth in the fourth quarter, thanks to well-heeled shoppers adoption of digital commerce during Covid-19.
In a Nutshell: “Despite a year of continued uncertainty and unprecedented changes, we again achieved strong new customer growth and delivered excellent results. We view this as a strong affirmation of our unique and superior value proposition to customers and brand partners at a global level,” Mytheresa CEO Michael Kliger said. “Mytheresa’s focus on curation, content and service drove exceptional top-line results beating our expectations, at stable gross profit margin and most importantly with extremely high customer satisfaction. All this strengthened our position as one of the world’s leading digital platforms for luxury fashion.”
The pandemic “significantly accelerated” the luxury consumer’s digital migration, Kliger said. “We clearly believe this trend will continue in the post-pandemic world, probably reverting to the strong market growth rates we had seen before the pandemic started,” he added.
Kliger told Wall Street analysts that the company’s “success as a curated luxury multi-brand digital platform continues to be based on a sharp luxury customer focus, strong brand partnerships and the focused profit-making business model.” A recent Bain & Co. study estimates that more than 30 percent of the personal luxury goods spend will occur online by 2025, he added.
“So while the shift of consumer demand for online in luxury has been significantly accelerated by the pandemic, we clearly believe this trend will continue probably at the lower pace in the post-pandemic world, but it will continue,” he said. “Independent of new customers coming to us as stores were closed or existing customers spending much more as opportunities for going out and travel came back, we grew our net sales in all region in the fourth quarter of fiscal year 2021. The clear highlight was again the United States, where we grew net sales by 133.3 percent year-over-year in Q4 fiscal year 2021. All this affirms our belief that we offer a superior value proposition.”
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Mytheresa attracted more than 110,000 new customers in the fourth quarter. Over the past 12 months, the company expanded its active customer base by 38 percent year-over-year to 671,000. A new partnership with Vestiaire Collective offers a handbag resale service, which will expand to shoes and ready-to-wear. During the quarter, the company also launched exclusive collections with brands including Alexander McQueen, Loro Piana, Jacquemus, Missoni, Brunello Cucinelli and Christian Louboutin.
Net Sales: For the fourth quarter ended June 30, net sales rose 36 percent to 162.4 million euros ($192 million) from 119.3 million euros ($141.0 million). Over a two-year comparison, net sales rose 60.5 percent when compared with the same 2019 pre-Covid quarter.
The company reported gross margin of 47.7 percent for the quarter, up from 46.3 percent a year ago.
For the year, net sales gained 36 percent to 612.1 million euros ($723.8 million) from $449.5 million euros ($531.5 million).
Earnings: The company reported a net loss of 8 million euros (9.4 million), 0.09 euros ($0.11), against net income of 11.1 million euros ($13.1 million), or 0.16 euros ($0.19), in the year-ago quarter. On an adjusted basis, net income was 7.6 million euros ($9 million) versus 9.4 million euros ($11.1 million) in the prior year period.
For the full fiscal year ending June 30, 2022, the luxury e-tail platform expects net sales between 680 million euros ($804.1 million) and 700 million euros ($827.7 million). It expects to grow GMV in the range of 750 million euros ($886.8 million) to 770 million ($910.5 million) euros, or growth of 22 percent to 25 percent. Active customer growth is expected to increase 22 percent to 25 percent, which would grow its customer base to 820,000 to 845,000 active customers.
For the year, the company posted a net loss of 32.6 million euros ($38.5 million), or 0.42 euros ($0.50), against net income of 6.4 million euros ($7.5 million), or 0.09 euros ($0.11), in the same year-ago period.
CEO’s Take: “Looking ahead, we will continue to deliver a superior customer experience and deepen our partnerships with the most coveted global brands. Given our strong financial position, excellent momentum with customer cohorts, and superior execution, we feel extremely confident to continue achieving strong results in fiscal year 2022,” Kliger said.