Mytheresa's Q3 shows progress despite challenges, US is star market
Luxury e-tailer Mytheresa reported generally good results on Tuesday but it’s also facing some challenges as the geopolitical backdrop proves volatile. Nonetheless, gross merchandise value (GMV) was up 13.2% year-on-year during Q3 and up 67% over two years, while profitability was “stable” and it expects a “strong full fiscal year”.
UPS AND DOWNS
The company said it achieved GMV of €186.6 million, while net sales rose 2.9% to €169.5 million. This was slower than the GMV rise “due to planned switches of brands to the Curated Platform Model (CPM) and the subsequent effect of recording the platform fee as net sales”.
Active customer growth reached 21.6%, something that’s a key metric for any online retail business.
The company saw an increase of 490 basis points in the gross profit margin to 48.8%, compared to 43.9% in the prior year period, “primarily driven by an increase in sales from the CPM generating 100% gross margin and a continued focus on full-price sales”. Gross profit rose 14.4% to €82.8 million and adjusted net income rose to €5.6 million from €4.5 million.
But on the downside, adjusted operating income was €8 million, compared to €9.1 million in the prior year period. And adjusted EBITDA may have been called — as mentioned — “stable" at €10.2 million, but given that it was down from €11.1 million a year earlier, that so-called stability was a little less in the firm’s favour.
The US was a standout market during the period and while overall GMV growth was 13.2%, in America it was 41.6% and helped its share of total GMV rise to 16.4%.
But the company is also upbeat about other markets and held high-impact top customer events in Europe, and the Middle East as well as the US, plus it opened the Mytheresa flagship store on JD.com to increase brand awareness and trust with Chinese consumers.
CEO Michael Kliger said the business “has shown excellent strength despite the impact of many external challenges. We grew our GMV double-digit, we expanded our customer base healthily, our top customer base has become even stronger and all this against an extraordinary growth of 47% in last year’s quarter. We continued to see strong growth in the United States, where we again had the highest growth for Mytheresa, with outsized growth in warmer weather states like Florida and Texas.”
But he added that it’s “impossible to predict the macroeconomic environment for the coming months”, although the luxury sector "has consistently proven to be very resilient. Furthermore, the shift to online in luxury shopping is continuing and driving growth”.
He added that the early weeks of Q4 have been able to “fuel our confidence that Mytheresa remains the partner of choice for luxury designer brands to engage with our high-value multi-brand customers. We remain confident in the short and longer-term potential for profitable growth of our business.”
For the full fiscal year ending June 30, he expects to achieve the firm’s guidance, although it will be at the low end of the given ranges.
GMV should be in the range of €755 million to €775 million, representing 23% to 26% growth, while net sales will be between €700 million and €720 million. Gross profit from €350 million to €365 million will mean 22% to 27% growth and the adjusted EBITDA margin should be in the range of 9% to 10%.
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