Mytheresa leads the struggling e-commerce market with 18% sales growth

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Mytheresa’s net sales grew 18 per cent to €233.9 million in the third quarter ended 31 March 2024, driven by the US.

Gross merchandise value (GMV) grew 14.7 per cent to €252.2 million, while gross profit rose 12 per cent to €101.6 million with a 43.4 per cent gross profit margin. Average order value at Mytheresa grew 8 per cent in the quarter to €692. Meanwhile, in an effort to reduce promotional activity, which Mytheresa participated in last year, inventory has been significantly reduced: inventory in Q3 grew 11.9 per cent, compared to 33.1 per cent in Q2 and 44.4 per cent in Q1.

Mytheresa has shown resilience in a market whereby its competitors are struggling to keep afloat. Matches filed for administration in March; Farfetch was sold to South Korean e-commerce giant Coupang in December 2023; and Richemont is still trying to shift Yoox Net-a-Porter (YNAP) after Farfetch’s deal to buy the loss-making asset was axed.

Mytheresa is rumoured to be among the potential bidders looking to acquire YNAP. CEO Michael Kliger declined to comment on the rumours specifically and told Vogue Business that, “M&A may be part of our strategy, but it’s not the core.” He also emphasised that while space remains for other players in the online e-commerce market, success is only possible for those who are able to “find the right customer proposition”.

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Online luxury’s last man standing

As luxury e-commerce suffers a series of setbacks, Michael Kliger, president and CEO of the German luxury multi-brand retailer Mytheresa, remains bullish.

Many brands are reducing wholesale exposure given the volatility, yet Kliger is confident that Mytheresa won’t be competing with the brands themselves. “Regarding the brands, we always stress that we are pursuing customer quality, not revenue growth, and that [brands that work with us are] really pursuing an audience that we believe is not easily approachable via the mono-brand model,” Kliger told Vogue Business ahead of the call, referring to both the product selection and the “money-can’t-buy” experiences offered by the retailer. “Therefore, our strategy will not be impacted, we will continue to enjoy very strong brand relationships and, if anything, given the consolidation, [the relationships] will get better.”

The US continued to outperform with sales growing 41.6 per cent, with top customers (defined as influential customers who spend a “significant” amount annually) in the region growing 48.3 per cent — California, New York, Connecticut, Florida and Texas are leading the growth. He told investors that he has observed green shoots on the aspirational customer in the US, but that the company’s growth is driven even further by big spenders.