Mytheresa sales and gross profit rise on back of high-spender focus

Luxury fashion retailer Mytheresa’s Q4 and full-year results on Thursday showed sales rising and continuing profitability. Although certain headline profit numbers dipped in a “very difficult” market and in which the business invested for growth, shareholders seemed happy and its share price rose as a key measure of profitability increased.

Gross profit improved 5.4% to €99.9 million in Q4 and 7.8% to €382.6 million for the year.

That came as the company saw 14.5% general merchandise value (GMV) growth to €855.8 million in the 12-month period and GMV growth of 10% to €222.2 million in Q4, while quarterly net sales leapt 16.5% year-on-year to €203.8 million.

As for other measures of profitability, adjusted EBITDA was €7.4 million in Q4, with a margin of 3.6% compared to €13.8 million and 7.9% a year ago.

Q4 also saw positive adjusted operating income of €4.2 million, and adjusted net income of €0.8 million. The latter figure was down 93.8% against 12 months ago.

Yearly net sales increased 11.4% to €768.6 million and adjusted EBITDA was €41.1 million. Annual adjusted EBITDA had been €66.3 million in the previous year.

Adjusted net income for the 12 months was €20.3 million, down 56.6%.

The digital-first company has been driving sales with a number of special events, launches and a physical pop-up (in East Hampton in the US attracting 3,200 selected guests over five weeks and creating brand awareness in that key market). It has also been investing in maintaining full-price sales.

This all helped it reach a record average order value of €654 in full-year FY23. And along with its strong customer growth of 9.6%, it saw even stronger growth in the number of top customers with a 24.2% in hike in Q4.

That’s key for the firm as it has been focusing heavily on the highest-spending shoppers in recent periods.

CEO Michael Kliger said: “We are extremely pleased with our excellent full fiscal year 2023 results. Double-digit growth across all geographies as well as continued profitability sets us apart especially in the current very difficult market environment. 

“The driver for our excellent results is our continued focus on the big-spending, wardrobe-building top customers and not the aspirational, occasional luxury shoppers. Our business with top customers grew by 30% in terms of GMV in fiscal year 2023. The share of top customers in our business in terms of GMV has increased to now 39%.”