Updated 4:15 p.m. ET Feb. 11
Mytheresa is seeing what several other luxury retailers aren’t — double-digit revenue gains and improved profitability.
And Wall Street noticed, sending shares of the company up 24 percent to $12.38 on Monday.
The progress is happening at a pivotal moment for Mytheresa as it moves closer to completing its acquisition of YNAP, a group made up of the Net-a-porter, Mr Porter, Yoox and The Outnet digital luxury businesses. “We see ourselves on track,” Michael Kliger, chief executive officer of Mytheresa, told WWD, referring to the acquisition. He said the closing is expected sometime during the first half of calendar 2025. It could come close to summer.
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On Tuesday, the Munich-based Mytheresa reported that its adjusted net income rose to 10.6 million euros during the company’s fiscal second quarter, which ended Dec. 31, from 2.7 million euros in the year-ago period. (Adjusted net income excludes legal costs related to the acquisition of YNAP and share-based compensation, among other one-time expenses.) The adjusted net income margin rate rose to 4.8 percent last quarter, from 1.3 percent in the year-ago quarter.
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“Our big jump in profitability is due to better full-price selling and higher basket size,” Kliger told WWD during an interview. The average order value increased by 9.5 percent to 736 euros over the last 12 months by the end of the second quarter of fiscal 2025. That gain comes on top of a 1.3 percent increase in order value in the prior year.
Including the one-time costs, Mytheresa narrowed its bottom-line loss to 4.7 million euros last quarter from a loss of 5.8 million euros in the year-ago quarter.
Net sales increased 13.4 percent year-over-year to 223 million euros as compared to 196.6 million euros in the second fiscal quarter a year ago. Regionally, revenues rose more than 17 percent in the U.S., 12 percent in Europe, while Asia “lagged,” Kliger said.
Revenues and margins were buoyed by greater full-priced selling, robust marketing efforts revolving around creating several experiences around the world for top customers and providing exclusive merchandise from designers.
In other second-quarter statistics, there was a 50.9 percent gross margin rate, representing an increase of 110 basis points year-over-year; inventory decreased 1.3 percent last quarter to 404.6 million euros.
“We are very pleased with the results,” Kliger said, adding that Mytheresa’s second-quarter results represented a “strong showing,” in particular compared to results being reported by certain other players in the luxury sector. The Kering Group on Tuesday reported that its fourth-quarter 2024 revenues fell 12 percent, for example.
Kliger said Mytheresa’s business last quarter continued to be led by occasion gowns and dresses, fine jewelry and ski styles. He also said resortwear had “a good early start” and that the company begins to generate significant business with spring collections as early as October. Among the stronger-selling brands and categories, Kliger cited Dolce & Gabbana in resort, Saint Laurent ready-to-wear, festive gowns from Oscar de Renta and quiet luxury from The Row, Brunello Cucinelli and Loro Piana.
In some good news for luxury shoppers, Kliger said during a conference call with industry analysts, “We clearly are in a moment of pause or hold on any further price increases. We have come out of a phase where a lot of price increases happened. Arguably, some of them went too far.”
Regarding the luxury market overall, Kliger said, “We believe there are clear signals for an improving overall luxury market, while, of course, concerns remain with the macro environment.”
The second quarter saw many “high impact campaigns and exclusive product launches that drove our global business,” Kliger said. Exclusive men’s and women’s looks were offered from Moncler, Victoria Beckham, Miu Miu and Loro Piana, among other luxury brands. During the quarter, Mytheresa also provided its top spending customers with early access to Gucci, and launched Bulgari fine jewelry and watches.
When one analyst asked Kliger for his point of view on physical retail, Kliger replied, “We agree that a physical presence is key. We need to form strong customer relationships through digital and physical experiences — which, for the moment, clearly means physical pop-ups, physical presentations of our brand and what we do. As of this weekend, we will be present physically in Aspen with a après ski experience together with our friends from Bemelmans Bar,” which is in The Carlyle hotel in New York City. It’s a pop-up running from Friday through March 2 where guests will be offered signature martinis, live piano music featuring classics from the American Songbook, and Mytheresa’s luxury edit.
Last quarter, Mytheresa hosted many events around the world for its top customers, among them a “mountain experience” with Zegna; a two-day yacht cruise with Valentino in Nice; a Nordic winter experience in Oslo with Moncler Grenoble, and a dinner with designer Simone Rocha at Claridge’s in London. On Friday, Mytheresa in conjunction with Bemelmans Bar launches an “après ski” pop-up in Aspen, at 620 East Hyman Avenue.
Pending shareholder approval in March, Mytheresa’s holding company will be called LuxExperience, and its ticker on the New York Stock Exchange will be changed to LUXE. Mytheresa will still exist as a retail brand within the group.
The name change, Kliger said, “signals to investors that we are about luxury. Creating this group name was also important to signal to the new teams that there will be one roof under which all the brands will operate independently with their own strong identities.”
When the acquisition of YNAP was first revealed last October, Kliger said his aim is to create a 4 billion-euro online juggernaut in the luxury fashion space by operating the Mytheresa shopfront alongside those of Net-a-porter and Mr Porter. He plans to deal with the discount Yoox business separately. As part of the acquisition, Richemont, current owner of YNAP, becomes a major shareholder of Mytheresa.
In his prepared statement Tuesday, Kliger said, “We are very pleased with our results in a still volatile macro environment. With strong, accelerating revenue growth of 13.4 percent and positive, significantly improved adjusted EBITDA margin of 7.3 percent in the second quarter, we continued our very positive business momentum from the previous quarters and have achieved a significant step up in financial performance in the first half of fiscal year 2025 compared to the first half of fiscal year 2024.”