Mytheresa, standing firm in the struggling world of luxury e-commerce platforms, expects to report healthy third-quarter gains and has confirmed its guidance for its entire fiscal year.
The Munich-based company reported on Thursday that its net sales for the third quarter ended March 31 will range from 230 million euros to 235 million euros. That represents an increase of 15 to 18 percent from the year-ago quarter.
Gross merchandise value is seen coming in at 245 million euros to 255 million euros, representing a 12 to 15 percent increase from a year earlier.
The company’s margins on adjusted earnings before interest, taxes, depreciation and amortization are projected to range from 3 to 4 percent, marking what Mytheresa described as “significant improvement” from the 1.6 percent adjusted EBITDA margin a year earlier.
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Mytheresa also said it expects an adjusted operating income margin of 1.5 percent to 2.5 percent, compared with 0.1 percent a year earlier.
The company will release its final third-quarter results on May 15, but investors liked what they saw, pushing the stock up 6 percent to $3.85 by the close of trading on Wall Street.
“We are extremely pleased with the strong performance in a rapidly consolidating marketplace,” said Michael Kliger, Mytheresa’s chief executive officer, in a statement. “The results underscore that Mytheresa is not just a luxury e-commerce platform. We build a community for luxury enthusiasts and create desirability through digital and physical experiences. This makes us the winner in an otherwise still tough market environment.”
Among the competitors experiencing difficulties is Matches.com, which was sold to Frasers and subsequently went bankrupt this year. Farfetch was near collapse until being rescued by South Korean e-commerce giant Coupang, which purchased the business for $500 million, well below the $40 billion it was once valued at. And Yoox Net-a-porter is searching for a new owner after an aborted deal with Farfetch, and owner Compagnie Financière Richemont has already written off the value of the business on its books.
Earlier this week, Saks.com, which has been delaying payments to certain vendors, secured additional borrowing capacity from a syndicate of lenders, led by Pathlight Capital and Bank of America with participation from Story3 Capital.
“As expected, Saks has closed a transaction with Pathlight Capital and Bank of America, securing up to $60 million in incremental liquidity while maintaining our low debt levels,” a Saks.com spokesperson told WWD on Monday. “The additional capital enhances our financial position as we continue to navigate the challenging macro-environment. As longtime financing partners to Saks, we are grateful for Pathlight and Bank of America’s continued confidence in our business.”
Moda Operandi has also been looking to raise money. Jim Gold, chief executive officer of Moda since 2021, said in a statement last month, “While current business is quite strong, we are seeking a very modest amount of capital to achieve the final stage of our path to profitability.”
Mytheresa also confirmed its guidance for the fiscal year ending June 30, at the lower end of the given ranges, indicating:
- Gross merchandise value and net sales growth in the range of 8 percent to 13 percent.
- Gross profit growth in the range of 8 percent to 13 percent.
- Adjusted EBITDA margin in the range of 3 percent to 5 percent.
