SEC Filing Reveals a Healthy Mytheresa
It’s now an open book on Mytheresa’s financials.
The Munich-based luxury website, which also operates two stores, on Monday filed a registration statement with the Securities and Exchange Commission, providing a granular view into the company’s financial performance and operations in advance of its planned initial public offering next year on the New York Stock Exchange.
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And apparently the business hasn’t been deeply affected by the pandemic, and has capitalized on the flock to online shopping and exodus from brick-and-mortar shopping.
For fiscal 2020, net income reached 6.4 million euros, compared to 1.7 million euros during fiscal 2019.
Adjusted net income was 19.3 million euros, compared to 15.8 million euros in fiscal 2019.
Volume reached 449 million euros in fiscal 2020, which ended June 30, an 18.6 percent gain from 379 million euros in the year-ago period. In fiscal 2016, the company generated 183 million euros.
In fiscal 2020, about 68 percent of net sales were derived from the company’s top 30 brand partners.
“Our long-standing brand relationships include Alexander McQueen, Balenciaga, Balmain, Bottega Veneta, Burberry, Dries van Noten, Dolce & Gabbana, Fendi, Gucci, Loewe, Loro Piana, Moncler, Prada, Saint Laurent, Stella McCartney and Valentino,” chief executive officer Michael Kliger wrote in a letter contained in the registration statement.
“In fiscal 2020, we offered 13 once-in-a-lifetime experiences, including events in Paris, Milan, Munich, Shanghai, Dubai and New York, featuring Moncler, Altuzarra, Boyy, Paco Rabanne, Gabriela Hearst, Stella McCartney, JW Anderson, Roger Vivier, Khaite and Amina Muaddi,” Kliger wrote. “At almost all of these events our top customers had the opportunity to meet the designers themselves. One of the highlight collaborations in fiscal 2020 was the celebration of our exclusive capsule collection with Stella McCartney, which featured Stella McCartney herself as a Mytheresa Woman in an exclusive video campaign.”
Mytheresa indicated that it “curates” 7,000 stockkeeping units from its top 30 luxury designer brands, and that less than 21 percent of those items overlapped with multibrand competitors as of December 2019.
In fiscal 2020, Mytheresa had 37 capsules and campaigns with exclusive content from brands including Brunello Cucinelli, Christian Louboutin, Moncler, Prada, The Row and Valentino.
Mytheresa’s women’s flagship and men’s store, which are both in Munich, generated about 3 percent of the company’s net sales in fiscal 2020.
As Kliger sees it, “Mytheresa is at the beginning of its journey.”
Among the growth plans cited: scaling organic search content in several additional languages, introducing a new customer acquisition model, enhancing localization and personalization capabilities, accelerating social media channel growth, and investing in categories to complement the women’s business. Mytheresa launched kids in January 2019 and currently sells 50 kids brands, and in January 2020 launched men’s, with more than 100 brands in the category.
Kliger said in fiscal 2020, the company had more than 486,000 active customers, and shipped more than one million orders to 133 countries.
“We achieved this scale and growth while maintaining our commitment to luxury with industry-leading average order values and robust and consistent customer economics, despite a difficult environment.”
Further in the registration statement, the company indicated, “While the pandemic has had a substantial impact on the global economy, we have not experienced material declines in net sales, deterioration in net assets or other adverse effects. While our flagship retail store in Munich was closed at the end of the third and beginning of the fourth quarters of fiscal 2020, before reopening on April 27, 2020, we continued to offer our customers an uninterrupted boutique luxury shopping experience from our online business, which constitutes 97 percent of our net sales.
“To date, we have incurred no significant supply chain or logistics disruptions with our brand partners, shipping providers, or our in-house operations. In response to the pandemic and in coordination with local government requirements, we temporarily closed certain corporate and administrative offices, including our corporate headquarters in Munich, with affected employees working remotely. These closures were limited to our administrative offices, with our warehouse and logistics functions remaining in operation throughout the pandemic. We also implemented safe work and social distancing measures for all employees, including personnel in our central warehouse facility in Heimstetten, Germany.”
By country, Germany is Mytheresa’s single biggest market, accounting for 19.8 percent of fiscal 2020 sales. The U.S. accounted for 10.3 percent of sales, and Europe (excluding Germany) accounted for 39.8 percent of sales. The rest of the world accounted for 30.2 percent of sales.
In other data contained in the registration statement, about 30 percent of sales in fiscal 2020 came from 2.6 percent of Mytheresa customers who are part of the “top customer” program. Those in the program, on average, made 16 purchases during the year, with an average order value in excess of 935 euros. The program offers such benefits as first access to runway and exclusive pieces, previews of new styles, personal shopping services and invitations to events including fashion shows.
In fiscal 2020, the average customer shopped about twice a year and spent about 900 euros, before returns.
In fiscal 2020, mobile orders accounted for 53 percent of net sales, including 42 percent through the app, and 78 percent of page views “underscoring the importance of our mobile-first approach,” the company said.
Mytheresa’s mobile app install base reaches about 2.6 million people and accounted for 78 percent of page views for fiscal 2020. The company had about 2.3 million followers on social media, as of Sept. 30, 2020.
For the three months ended Sept. 30, 2020, net income reached 9.6 million euros, compared to a net loss of 4.3 million euros in the year-ago period.
Adjusted net income was 5.4 million euros, compared to 3.5 million euros in the year-ago period.
Last September. the Neiman Marcus Group emerged from five months of bankruptcy proceedings. The restructuring resolved legal disputes and ownership issues revolving around MyTheresa. The website is now controlled by Ares Management and the Canada Pension Plan Investment Board, which had owned NMG before the restructuring. Neiman’s originally purchased Mytheresa in 2014 and had it operating as a separate subsidiary since 2018, to presumably to protect it from creditor claims.
MyTheresa was worth roughly $822 million in 2018, but there have been other higher and lower estimates. Monday’s filing does not indicate a valuation. The pricing and number of shares to be offered is to be determined. As the registration statement indicates, the global online luxury market — luxury apparel, accessories, beauty and hard goods — is expected to more than triple from 33 billion euros in 2019 to 105 billion to 115 billion euros in 2025, according to Bain & Co.’s Luxury Goods Worldwide Market Study. Based on the 2020 Bain Study, the personal luxury goods market is expected to reach 330 billion to 370 billion euros by 2025, with online penetration expected to grow from 12 to more than 30 percent, from 2019 to 2025.
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