Mytheresa, a stronghold in the struggling world of luxury goods e-commerce platforms, expects to report a healthy profit in the third quarter and affirmed its guidance for the full fiscal year.
The Munich-based company on Thursday reported net sales of 230 million euros to 235 million euros for the third quarter ending March 31. This represents an increase of 15-18% year over year.
Gross merchandise value is expected to be between €245 million and €255 million, representing a 12-15 percent year-on-year increase.
The company's profit margin before interest, taxes, depreciation and amortization is expected to be between 3% and 4%, which Mytheresa described as a “significant improvement” from the year-ago quarter's adjusted EBITDA margin of 1.6%. It became.
Mytheresa also said it expects adjusted operating margin to be 1.5-2.5%, up from 0.1% in the year-ago period.
Investors were impressed by the company's final third-quarter results, which are scheduled to be released on May 15, with shares up 4.7% at $3.80 in midday trading on Wall Street.
“We are very pleased with our strong performance in a rapidly consolidating market,” Michael Kriger, CEO of Mytheresa, said in a statement. “This result highlights that Mytheresa is more than just a luxury e-commerce platform. We are building a community for luxury lovers and creating attraction through digital and physical experiences. , we remain a winner in a challenging market environment.”
Competitors facing difficulties include Matches.com, which was sold to Frasers and later filed for bankruptcy this year. Farfetch was on the brink of bankruptcy before being rescued by South Korean e-commerce giant Coupang, which bought the business for $500 million, well below its previous valuation of $40 billion. Yoox Net-a-porter is also looking for a new owner after his contract with Farfetch was terminated, and his 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. did.
“As expected, Saks has completed the transactions with Pathlight Capital and Bank of America, securing up to $60 million in additional liquidity while maintaining low debt levels,” a Saks.com spokesperson said. told WWD on Monday. “The additional capital strengthens our financial position as we navigate a challenging macro environment.As long-time financing partners of Sachs, Pathlight and Bank of America continue to have confidence in our business. Thank you for what you are doing.”
Moda Operandi is also considering raising capital. Jim Gold, Moda's chief executive officer starting in 2021, said in a statement last month: “The current business is very strong, but we are investing very modest capital to achieve the final stages of our path to profitability.” I'm looking for it.''
Mytheresa also confirmed that its guidance for the financial year ending June 30 is set at the lower end of a given range, indicating:
- Gross merchandise value and net sales increased in the range of 8% to 13%.
- Gross profit growth rates range from 8% to 13%.
- Adjusted EBITDA margins range from 3% to 5%.
