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MYT Netherlands Parent B.V. (MYTE) Q4 Earnings call transcript Sep 12, 2024

AInvestThursday, Sep 12, 2024 8:05 pm ET
2min read

Mytheresa, a leading luxury multi-brand digital platform, reported its fourth quarter and full fiscal year 2024 earnings with strong revenue growth and positive adjusted EBITDA in Q4. The company highlighted its focus on high spending, wardrobe-building top customers and strategic initiatives that have strengthened its position in a consolidating sector.

Strong Business Fundamentals and Revenue Growth

Mytheresa's gross merchandise value (GMV) grew by 7.8% in Q4 of fiscal year 2024 compared to Q4 of fiscal year 2023, leading to a double-digit GMV growth of 11.4% in the second half of fiscal year 2024. The United States, a significant growth driver, experienced a growth of 25.2% in the second half of full fiscal year '24, making it a key market for Mytheresa. The company's top customer base grew by 3.4% in the fourth quarter, with an average spend per top customer increasing by 4.6%. This growth is a testament to Mytheresa's successful focus on top customers and its ability to attract and retain high-value customers.

Customer Engagement and Community Building

Mytheresa's efforts to build a community for luxury enthusiasts through digital and physical experiences have yielded positive results. The company launched exclusive capsule collections with various luxury brands, offering unique digital campaigns and physical events to top customers. These initiatives have not only boosted sales but also strengthened Mytheresa's relationships with luxury brands. The company's successful pop-up experience in East Hampton, which attracted over 6,000 registered guests, is a testament to the success of these strategies.

Financial Performance and Operational Efficiencies

Mytheresa achieved a positive operating cash flow for the full fiscal year '24 and no bank debt in its balance sheet. The company's focus on cost efficiencies is evident in its decreasing customer acquisition costs and stable operating cost ratios. Mytheresa's strategic decision to close its legacy distribution center in Heimstetten and relocate operations to Leipzig is expected to increase customer satisfaction and cost efficiencies.

Looking Ahead

Mytheresa's guidance for fiscal year '25 indicates a continued focus on profitable growth and market share gains. The company's cautiously optimistic outlook is based on improving economic and political environments, particularly in Europe and Asia. Mytheresa's ability to navigate market challenges, focus on top customers, and leverage operational efficiencies positions it well for future success.

Conclusion

Mytheresa's fourth quarter and full fiscal year 2024 earnings call demonstrated a company in a strong position, with clear strategic initiatives and a focus on high-value customers. The company's financial performance, customer engagement, and operational efficiencies are key indicators of its resilience and growth potential in the consolidating luxury digital space. Mytheresa's strategic focus on creating desirability through digital and physical experiences and its commitment to building a community for luxury enthusiasts are differentiators that set it apart from competitors. The company's future outlook, guided by a clear vision and strategic initiatives, is a promising indicator of its potential for continued growth and profitability.

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