To receive the Vogue Business newsletter, register here.
Mytheresa said the focus on high-end luxury shoppers, the continued strength of the US market, and the new lighter-risk inventory model boosted net sales for the year, offsetting the impact of quarantines in China and the war in Ukraine.
The German luxury multi-brand retailer reported that for the year to 30 June 2022 at GMV increased 21.3 percent from the previous year to 747.3 million euros. Net sales rose 12.7% to 689.8 million euros. The retailer, one of the few profitable multi-brand luxury platforms, said its adjusted EBITDA margin rose 9.6 percent in 2021, a record high.
“Q3 was affected by the negative perception of the outbreak of war, but we expected it to be temporary – and it was,” says Michael Kliger, Mytheresa CEO. He attributes the retailer’s growth to the strength of the US market, which saw GMV’s 28 percent growth for the full fiscal year, as well as “high discretionary spending” by customers “long vacation” customers.
“Our customers have doubled, if not tripled. [holidays] so they had to double and triple their wardrobes too,” says Kliger. Top clients in summer destinations like Mytheresa, Saint Tropez, Capri and Miami Beach in collaboration with Dolce & Gabbana, Dries van Noten, Pucci, Bottega Veneta, Gucci, Zimmermann and Valentino hosted special capsule collections and pre-launch events for
Mytheresa sales are on the rise, attracting Americans. Here’s how
Profitable from day one, the luxury multi-brand digital platform is attracting US consumers and new shoppers after listing in New York in January. The business says it plans to launch an e-concession model with major brands.
Kliger points to concerns about energy prices, inflation and economic slowdowns, the resurgence of Covid, and potential new geopolitical tensions. But he adds: “We believe our high-end digital luxury clients and our very agile business model have protected us from these challenges and uncertainties in many ways.”
For retailers that have taken over too many contemporary brands, inflation “hits harder,” Kliger says; This is not the case for Mytheresa, which saw 5-6 percent growth in average order value for 2022 compared to the previous fiscal year. “[It] it is a reflection of the top customer that we really focus on. In our client type, these effects are minimal. The high desirability of our product has translated into very strong profitability.”
Kliger acknowledges that sales in China are showing signs of recovery, with GMV up 22.5 percent from the previous fiscal year, but the market remains challenging. In June 2022, Mytheresa appointed Steven Xu as president of China and Asia Pacific. It’s also focused on recruiting in Shanghai and plans to launch a major brand campaign in China soon.