Q1 FY23 Results: Mytheresa accelerates growth with GMV up 21% in Q1 FY23 and confirms full FY23 GMV & Adjusted EBITDA guidance
MUNICH - Thursday, 10. November 2022
Strong Q1 FY23 with 20.8% Gross Merchandise Value (GMV) growth to €197.9 million and an Adjusted EBITDA margin of 6.6%
Gross Profit margin increases to 49.9% in Q1 FY23 compared to 49.0% in the previous year quarter
Full FY23 guidance for GMV at 16% to 22% growth with a stable Adjusted EBITDA margin of 9.0% to 9.5% confirmed
(BUSINESS WIRE)--MYT Netherlands Parent B.V. (NYSE: MYTE) (“Mytheresa” or the “Company”), the parent company of Mytheresa Group GmbH, today announced financial results for its first quarter of fiscal year 2023 ended September 30, 2022. The luxury multi-brand digital platform delivered strong results in the first quarter of accelerated top-line growth with continued profitability. This demonstrates the fundamental strength and consistency of a truly differentiated business with a unique customer focus, a highly adaptive business model and outstanding operational excellence.
Michael Kliger, Chief Executive Officer of Mytheresa, said, “Our acceleration in GMV growth during the quarter over the previous quarters in 2022 sets us apart from other digital platforms and the sole focus on the high-end luxury sector, both in terms of customers as well as brands, makes us foremost a luxury business and not just a digital business. We believe that our results demonstrate the fundamental strength, resilience and consistency of our business, which has always delivered profitable growth. With our unique customer focus, a highly adaptive business model and operational excellence we are very confident to deliver against our communicated targets for full fiscal year 2023, despite ongoing challenges in the macro environment.”
Kliger continued, “The Mytheresa business model is well diversified and agile. We achieved growth across all our categories including our recently launched Life category with home and lifestyle products as well as across all geographies. We achieved again an above average GMV growth in the US where we continue to win clients due to our unique edit and the many ‘money can’t buy experiences’ for our top customers. We also achieved very good growth in Mainland China, where we grow our local teams and invest into activations under our new local leadership.”
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2022
GMV growth of 20.8% year-over-year to €197.9 million, compared to €163.9 million in the prior year period
Net Sales increase of €18.1 million, or 11.4% year-over-year to €175.9 million due to planned transition of brands to the Curated Platform Model (CPM) and the subsequent effect of recording the platform fee as Net Sales
Increase of 90 basis points in Gross Profit margin to 49.9% compared to 49.0% in the prior year period, driven by an increase in sales from CPM which generates 100% gross margin with no cost of sales as well as our full price selling model
Adjusted EBITDA of €11.6 million compared to €14.0 million in the previous year quarter with an Adjusted EBITDA margin of 6.6% in Q1 FY 23
RECENT BUSINESS HIGHLIGHTS
Strong Global Expansion:
Further accelerated GMV growth with +20.8% vs. Q1 FY22
Above average GMV growth again in the United States with +28.5% vs. Q1 FY22
High-impact top customer and brand partner events held in Europe and the United States across all major Fashion Weeks
Announcement of The China Designer Program by Mytheresa to support and create visibility for Chinese luxury designers
Continued Brand Partnerships:
Launch of exclusive capsule collections and pre-launches in collaboration with Gucci, Chloé, Givenchy, Christian Louboutin, Jacquemus, Loewe, Bottega Veneta and many more
Exclusive launch of the Etro Love Trotter bag on Mytheresa directly on the day it showed during Marco De Vincenzo’s first Etro show
Continued expansion of the Curated Platform Model (CPM) with 7 brands now live
High-quality Customer Growth:
LTM growth of active customers of 13.4% reaching 800,000 customers
Solid number of first-time buyers in Q1 FY23 with over 105,000 new customers
Repurchase rates of new customer cohorts acquired in Q4 FY22 showed positive trend vs. Q4 FY21 cohort in respective Q1
Strong growth of number of top customers with 22.7% in Q1 FY23 vs. Q1 FY22 as well as an increase in average GMV per all customers of 6.5% in Q1 FY23 vs. Q1 FY22 underlining clear focus on quality of customer acquisitions
Consistent Strong Operational Performance:
Maintained very high customer satisfaction with an industry-leading Net Promoter Score of 81.0% in Q1 FY23
Achieved strong gross profit margin with 49.9% in Q1 FY23 based on continued focus on full-price business and increasing share of CPM which generates 100% gross profit with no cost of sales
Operational indicators in Q1 FY23 underlined resilience and adaptability of the Mytheresa business model despite challenging macro conditions
Published first ESG achievement report highlighting progress against defined ESG commitments
For the full fiscal year ending June 30, 2023, we confirm our previous guidance:
GMV in the range of €865 million to €910 million, representing a 16% to 22% growth
Net Sales of €755 million to €800 million, representing 10% to 16% growth
Gross Profit at €410 million to €435 million, representing a 16% to 22% growth
Adjusted EBITDA in the range of €68 million to €76 million and an Adjusted EBITDA margin of 9.0% to 9.5%
For the medium-term we confirm our targets of annual GMV Growth of 22% to 25% as well as an Adjusted EBITDA margin around 9% to 10%.
The foregoing forward-looking statements reflect Mytheresa’s expectations as of today's date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Mytheresa does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
CONFERENCE CALL AND WEBCAST INFORMATION
Mytheresa will host a conference call to discuss its first quarter of fiscal year 2023 financial results on November 8, 2022 at 8:00am Eastern Time. Those wishing to participate via webcast should access the call through Mytheresa’s Investor Relations website at https://investors.mytheresa.com. Those wishing to participate via the telephone may dial in at +1 (877) 269-7751 (USA) or +1 (201) 389-0908 (International). The passcode will be 13733608. The conference call replay will be available via webcast through Mytheresa’s Investor Relations website. The telephone replay will be available from 11:00am Eastern Time on November 8, 2022, through November 15, 2022, by dialing +1 (844) 512-2921 (USA) or +1 412 317 6671 (International). The replay passcode will be 13733608.
FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to the impact of the COVID-19 global pandemic; the impact of restrictions on use of identifiers for advertisers (IDFA); future sales, expenses, and profitability; future development and expected growth of our business and industry; our ability to execute our business model and our business strategy; having available sufficient cash and borrowing capacity to meet working capital, debt service and capital expenditure requirements for the next twelve months; and projected capital spending. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements are only predictions. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below.
We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.
Further information on these and other factors that could affect our financial results is included in filings we make with the U.S. Securities and Exchange Commission (“SEC”) from time to time, including the section titled “Risk Factors” included in the form 20-F filed on October 15, 2021 under Rule 424(b)(4) of the Securities Act. These documents are available on the SEC’s website at www.sec.gov and on the SEC Filings section of the Investor Relations section of our website at: https://investors.mytheresa.com.
ABOUT NON-IFRS FINANCIAL MEASURES AND OPERATING METRICS
We review a number of operating and financial metrics, including the following business and non-IFRS metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. We present Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income and Adjusted EBITDA Margin as well as Adjusted Operating Income Margin and Adjusted Net Income Margin because they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe these measures are helpful in highlighting trends in our operating results, because they exclude the impact of items that are outside the control of management or not reflective of our ongoing operations and performance. Adjusted EBITDA, Adjusted Operating Income, and Adjusted Net Income have limitations, because they exclude certain types of expenses. We use Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income as well as Adjusted EBITDA Margin, Adjusted Operating Income Margin and Adjusted Net Income Margin as supplemental information only. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis.
Our non-IFRS financial measures include:
Adjusted EBITDA is a non-IFRS financial measure that we calculate as net income before finance expense (net), taxes, and depreciation and amortization, adjusted to exclude IPO preparation and transaction costs, Other transaction-related, certain legal and other expenses and IPO-related share-based compensation expenses. Adjusted EBITDA Margin is a non-IFRS measure which is calculated in relation to net sales.
Adjusted Operating Income is a non-IFRS financial measure that we calculate as operating income, adjusted to exclude IPO preparation and transaction costs, Other transaction-related, certain legal and other expenses and IPO-related share-based compensation expenses. Adjusted Operating Income Margin is a non-IFRS measure which is calculated in relation to net sales.
Adjusted Net Income is a non-IFRS financial measure that we calculate as net income, adjusted to exclude finance expenses on our Shareholder Loans, IPO preparation and transaction costs, Other transaction-related, certain legal and other expenses, IPO-related share-based compensation expenses and related income tax effects. Adjusted Net Income Margin is a non-IFRS measure which is calculated in relation to net sales.
We are not able to forecast net income (loss) on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect net income (loss), including, but not limited to, Income taxes and Interest expense and, as a result, are unable to provide a reconciliation to forecasted Adjusted EBITDA.
Gross Merchandise Value (GMV) is an operative measure and means the total Euro value of orders processed. GMV is inclusive of merchandise value, shipping and duty. It is net of returns, value added taxes, applicable sales taxes and cancellations. GMV does not represent revenue earned by us. We use GMV as an indicator for the usage of our platform that is not influenced by the mix of direct sales and commission sales. The indicators we use to monitor usage of our platform include, among others, active customers, total orders shipped and GMV.
ABOUT MYTHERESA Mytheresa is one of the leading global luxury fashion e-commerce platforms shipping to over 130 countries. Founded as a boutique in 1987, Mytheresa launched online in 2006 and offers ready-to-wear, shoes, bags and accessories for womenswear, menswear and kidswear. In 2022, Mytheresa expanded its luxury offering to home décor and lifestyle products with the launch of the category “LIFE”. The highly curated edit of over 200 brands focuses on true luxury brands such as Bottega Veneta, Burberry, Dolce&Gabbana, Gucci, Loewe, Loro Piana, Moncler, Prada, Saint Laurent, Valentino, and many more. Mytheresa’s unique digital experience is based on a sharp focus on high-end luxury shoppers, exclusive product and content offerings, leading technology and analytical platforms as well as high quality service operations. The NYSE listed company reported €747.3 million GMV in fiscal year 2022 (+21.3% vs. FY21).