Mytheresa Fiscal Q2 Report Cites Strong Revenue and Profitability Gains
Mytheresa is seeing what several other luxury retailers aren’t — double-digit revenue gains and improved profitability.
And 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.
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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.
“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 from the second quarter of fiscal 2025 when the order value rose 1.3 percent.
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 and robust marketing efforts revolving around creating experiences for top customers, and providing exclusive merchandise from designers.
Wall Street was impressed by the results and pushed the stock price up around 13 percent to $11.30 Monday morning.
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 the 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 festive occasion gowns and dresses, fine jewelry and ski styles. He also said resort wear 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.
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 string 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.
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.”
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