LONDON — An uptick in the number of high-spending customers, and strong growth worldwide, boosted the top and bottom lines at Mytheresa in the first quarter of its 2021-22 fiscal year.
The Munich-based e-tailer said gross merchandise value rose 29.7 percent to 163.9 million euros in the three months to Sept. 30, while net sales were up 24.9 percent to 157.8 million euros. Adjusted net income rose 52 percent to 8.2 million, while adjusted EBITDA was up 35 percent to 14 million euros.
Mytheresa maintained its guidance for the full fiscal year, but said it now expects net sales to be 22 to 25 percent higher than anticipated, landing between 700 million euros and 750 million euros.
The company said it has been attracting a higher-spending clientele and building upon its new Curated Platform Model, which allows it to plug directly into individual brands’ inventories allowing for better access to stock, and facilitating in-season replenishment and deliveries.
Shares closed up 2.9 percent at $29.45 on the New York Stock Exchange.
Michael Kliger, chief executive officer of Mytheresa, said the company was “extremely satisfied” with the first-quarter results, touting the gains as “affirmation of our unique and superior value proposition to customers and brand partners at a global level, as well as excellent operational execution.”
He said, “The shift of consumer demand to online in luxury has clearly accelerated in recent months. We strongly believe this trend will continue in the post-pandemic world, probably reverting to the strong market growth rates we had seen before the pandemic.”
It’s no wonder, then, that Kliger is “extremely confident” about Mytheresa achieving strong results for the full fiscal year.
The business also has an edge on London-based competitors such as Net-a-porter, Harrods or Matchesfashion. It is based, and sources its collections, in Continental Europe, and has not had to deal with post-Brexit import-export friction, extra charges or warehousing headaches.
Mytheresa said it saw growth across all regions with the strongest net sales growth in the U.S., where it has been making a big push, adding new team members and cultivating clients. Sales there were up 48.7 percent compared with the corresponding period last year, and Mytheresa said that its “market presence continues to grow.”
Over the last 12 months, the active customer base has grown by 35.2 percent, reaching 705,000, while the site has been seeing “continued strong repurchase rates of new customer cohorts.”
Mytheresa said its number of top customers grew by 41 percent in the first quarter, and noted that gross profit margin was strong due to a high percentage of full-price sales.
Looking ahead, the retailer said it is expecting active customer growth of 22 to 25 percent, which will enlarge the customer base to as much as 845,000 active users.
In fiscal 2021-22, gross profit will land between 345 million euros and 355 million euros, representing 21 to 24 percent growth, while adjusted EBITDA margin is set to be at the “upper half” of the long-term range projection of 7 to 9 percent.
The company has also been ramping up its environmental commitments: In October, it announced its commitment to carbon neutrality with regard to its own operations and all shipments and returns. Mytheresa said emissions that cannot be eliminated by operational actions will be offset with Gold Standard certified projects.
Mytheresa said it worked with ClimatePartner, an international expert for corporate climate action solutions. The organization has already conducted a carbon footprint analysis as a baseline for Mytheresa, and said it will support the retailer with its future measures to maintain carbon neutrality.
In August, Mytheresa announced plans to phase out its existing fur inventory from previous seasons by the end of 2022, although it will continue to sell items made of shearling and calf hair. The company said the policy applies to all animal fur products and items across Mytheresa operations, including its two physical boutiques.
In June, Mytheresa joined the resale wave via a partnership with the luxury consignment platform Vestiaire Collective.
The service sees Mytheresa taking back secondhand luxury designer merchandise from clients, and handing them store credits in return.
According to the company, Mytheresa customers have embraced the initiative, and are getting an average of 700 euros in store credit when they return used goods via Vestiaire.
They’ve also been spending more in their subsequent purchases. The company said it was seeing “significantly higher” average order values from customers who are using the return service.