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Mytheresa’s net sales grew 9.8 per cent to €840.9 million in 2024 as the company navigates the murky waters of luxury retail, beating the wider industry slowdown. The results were largely in line with expectations, though gross profit margin was slightly lower, at 45.7 per cent this year compared to 49.6 per cent in 2023. Shares dropped over 6 per cent today before markets closed.
Mytheresa expects sales to grow between 7 and 13 per cent in 2025, with an adjusted EBITDA margin of between 3 and 5 per cent.
Q4 sales grew 9.7 per cent year-on-year. The first half of the year saw slower demand, but H2 saw a recovery with 13.8 per cent sales growth. Adjusted EBITDA in 2024 was €25.8 million, with a margin of 3.1 per cent. “In the first half, the biggest challenge was a complete mismatch of supply and demand in the market — not only with retailers, but also with brands. There was too much product in the market, which drove higher discounting and drove down the pre-price share — all with consequences of lower growth and lower profitability,” CEO Michael Kliger tells Vogue Business. Mytheresa had an excess of inventory this year, which it is working to rebalance. “Luckily, it pushed us to low growth and little profitability, whereas it pushed others into the negatives.”
The luxury retail space has been unsettled over the past year, with Matches filing for administration, Farfetch being acquired by Coupang and slowing down its growth, and the future of Yoox Net-a-Porter (YNAP) — which Farfetch was initially supposed to acquire — up in the air (Mytheresa is rumoured to be one player interested in acquiring YNAP, but Kliger declined to comment).
Luxury brands are experiencing a slowdown — even heavyweights Kering, LVMH and Richemont are struggling. Kliger says there is an opportunity to grab market share and establish relationships with “big spenders that feel let down by other players”.
The company is hoping to cash in on the opportunity. “The results demonstrate what we believe is a superior market positioning, really focused on the big-spending top customers,” he told investors. “We see ourselves as a clear winner in the consolidating, luxury e-commerce space. We are extremely well positioned to benefit from the tremendous growth prospects as market conditions continue to improve globally.”
Mytheresa’s share price is still 89 per cent below what it was when it first listed on the New York Stock Exchange in 2021, but it has far outpaced the market. “[Luxury] is a cyclical business, so the debate [amongst investors] has been, where are we in the cycle?” says Kliger. “Based on our numbers, we believe we have seen the trough and we are now on our way to getting back on track.”
The US market, which now represents 20 per cent of the company’s annual sales, remains a target. Sales in the region grew 25 per cent in 2024, with strong performance across New York, New Jersey and Connecticut on the East Coast, California on the West Coast, and Texas, Arizona, Tennessee and Georgia in the South. Europe is also a target for Mytheresa, where sales grew 7.2 per cent in the fourthquarter. Kliger says he believes China “will take more time for recovery”, but the company is investing there and recently hired Dede Chan Brignoli as president of China.
Average order value increased to €703 across the full year. The top customer base grew 3.4 per cent (now representing 39.2 per cent of the total business) and the average GMV per top customer increased 4.6 per cent. In Q4, customer satisfaction — measured by a Net Promoter Score — was 83 per cent. Mytheresa is known for its clienteling and VIP experiences. Highlights this quarter included a yacht cruise with Valentino in Nice, a Dolce & Gabbana event in Capri and a Brunello Cucinelli event on Italy’s Lake Orta, as well as exclusive capsule collections from brands including Saint Laurent, Bottega Veneta and Loewe. Its pop-up shop in the Hamptons garnered the attention of over 6,000 guests over two months this summer. Mytheresa has a slew of events planned for fashion month including with Bucherer in New York, Simone Rocha in London and Gabriela Hearst in Paris.
“This is not about transactional e-commerce, it’s about creating a community for these customers. We want to create ways that customers can not only connect with our personal shoppers, but also among each other,” says Kliger, adding that he has received positive feedback from customers on the networking opportunities Mytheresa’s VIP events provide. “In times of uncertainty, it is even more important that there is a sense of belonging, connection and trust.”
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