Mytheresa sales and profits surge in latest year
Mytheresa this week became the latest luxury online fashion retailer to report surging sales with its revenues up nearly 25% in the latest year.
The company is owned by Neiman Marcus and is seen as the jewel in its crown, although the US parent is believed to be mulling a sale or IPO of the business. That might make sense given its obvious strength and it said consolidated net revenues reached €377 million, with an increase of 24.7% online, in the 12 months to June.
That €377 million number includes both its key online ops, as well as its physical store in Munich.
But while sales surged, the figure didn’t come anywhere near its profit rise with earnings before interest, tax, depreciation and amortisation (EBITDA) up as much as 50%. Although the company didn’t put a financial figure on its EBITDA nor explain the leap, we have to assume that higher margins were a big part of it.
CEO Michael Kliger said of the figures: “Fiscal Year 2019 was another highly successful year for us. Growing by almost 25% while improving profitability significantly shows that we not only have the right strategy but are also executing very well on it. Our vision is to make Mytheresa the best Luxury Customer Experience platform globally. Customer centricity is at the heart of our daily operations and ambitions.”
It’s a shame there was little other detail available but it’s clear that Mytheresa, along with rivals such as Farfetch and Net-A-Porter, as well as e-stores linked to department stores and brands’ own web operations, are helping to turn luxury consumers into online addicts.
The luxury sector lagged retailers further down the price scale as far as embracing online is concerned, but it’s catching up fast with more and more brands signing up to multi-label platforms as well as launching their own e-tail ops.
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