A Spending Frenzy at Mytheresa Propels Sales, Profits in Fiscal Q3
LONDON – High-spending VIP clients and a flood of new customers eager to splash out post-lockdown bolstered Mytheresa’s sales and profits in the fiscal third quarter ending March 31.
The multi-brand, online luxury retailer saw adjusted net profits surge to 4.5 million euros, compared with a 0.1 million euro loss in the corresponding quarter last year, while sales climbed 47.5 percent to 164.8 million euros.
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Sales growth accelerated compared with the fiscal second quarter, which had seen an increase of 32.9 percent.
Compared with the third quarter of 2019, well before the COVID-19 pandemic swept the world, sales were up 66 percent.
Adjusted EBITDA in the three month period bounced to 11.1 million euros, compared to 3.1 million euros in the prior-year period.
On the back of the strong performance, the Munich-based company raised its guidance for the full fiscal year ending June 30. It is now looking at 33 to 35 percent sales growth, taking sales to between 600 million euros and 605 million euros.
It’s expecting adjusted EBITDA to range between 55 million euros and 59 million euros.
Michael Kliger, chief executive officer of Mytheresa, pointed to the acceleration in sales growth from the second quarter to the third quarter of fiscal 2021, and argued that it was “largely driven by the continuous shift in consumer behavior towards digital and multi-brand offerings.”
He said the company’s success “continues to be based on a sharp luxury customer focus, strong brand partnerships and an execution-driven and profit-making business model.”
Kliger noted that Mytheresa set a new record for first-time buyers in the third quarter, and they showed “higher re-purchase rates than before.”
In the second quarter, the company had already boasted “a record high” of first-time buyers — more than 100,000 — as e-commerce sales raced ahead during the worldwide coronavirus lockdowns.
In the third quarter, Kliger also pointed to a “strongly increased spend from our top customers as they begin to resume pre-pandemic activities such as social events and vacations.”
As reported, about 3 percent of all of Mytheresa’s customers generate 30 percent of the business, and the retailer works hard to please them.
The company, Kliger added, grew strongly in almost all geographies, especially in the U.S., which generated sales growth of more than 76 percent.
During the quarter the company began making inroads into the U.S. market.
Last month the company named Heather Kaminetsky president of North America, and she will take up her role on June 1.
Kaminetsky has worked with companies including Net-a-porter, Borderfree and Barneys New York, and was most recently chief brand officer of the direct-to-consumer start-up M.Gemi.
She will be responsible for all Mytheresa customer-facing activities in the region, including personal shopping, communication and affiliate marketing.
Mytheresa said last month that the set-up of a fully dedicated customer-facing team in North America “is a logical next step in an aggressive expansion strategy to increase brand awareness and market share both in the U.S. and Canada.”
