Mytheresa Leans into Digital Experiences and Global Events

For Mytheresa CEO Michael Kliger, there was no doubt about his company’s performance during the fourth quarter and fiscal year.

“We clearly see ourselves as a winner in the consolidated luxury space,” he told analysts and investors during the company’s fourth-quarter and full-year earnings call on Thursday (Sept. 12). “After a difficult period last autumn, we’re back on track for strong growth and the U.S. continues to be a strong driver for our growth. We’re building a community for luxury enthusiasts and building it with digital experiences is paying off.”

The Munich-based digital luxury platform delivered significant improvements in revenue and profitability, projecting continued growth despite macroeconomic uncertainties. Net sales grew 14% in the second half of FY24 and 10% in the fourth quarter. Year-over-year, growth in the U.S. rose 25%.

Kliger attributed the company’s performance to a better balance between supply and demand, which helped mitigate the severe discounting issues of previous periods. Operationally, Mytheresa made significant strides, notably ramping up its Leipzig warehouse operations to handle more than 80% of customer orders by late July. To streamline logistics and enhance efficiency, the company closed its Heimstetten warehouse.

A series of high-profile global events and exclusive partnerships also marked Mytheresa’s successful quarter. The company hosted luxurious multi-day experiences with brands such as Brunello Cucinelli, Dolce&Gabbana, and Valentino, including Italian retreats and yacht cruises, which were well-received by top customers. The launch of exclusive capsule collections and pre-launches with brands like Gucci and Loewe further highlighted Mytheresa’s dedication to offering sought-after products.

Additionally, a successful Mytheresa x Flamingo Estate pop-up in East Hampton attracted more than 6,000 registered guests over eight weeks, creating a vibrant community for luxury enthusiasts.

“We have a resilient and consistent business model with outstanding customer satisfaction, along with decreasing customer acquisition costs,” Kliger noted. “We’ve accelerated our topline growth and profitability and reinforced our unique position with our top customers. We are very pleased with our performance in the fourth quarter as it drove the continued very positive momentum for Mytheresa in the second half of fiscal year 2024 with double-digit growth and almost doubling of profitability compared to prior year. We are very pleased with our full fiscal year 2024 results.”

Kliger said Mytheresa reaffirmed its position as “the best high-end luxury digital platform. Mytheresa builds a community for luxury enthusiasts. We create desirability through digital and physical experiences. We believe Mytheresa offers the best digital luxury shopping experience for big spending consumers and brands.”

While Kliger highlighted Mytheresa’s resonance in the U.S. and Europe (“with the exception of Germany”), Asia is “at the other end of the spectrum,” which will “take some time.”

“China is a very important market for us and we continue to invest in the market,” he noted. “China is very high on our focus list. Chinese consumers are focused on the very best ready to wear pieces.”

Kilger expects promotional intensity and customer acquisition costs to normalize.

“Overall, it is a clear vote for quality of customer relationships and quality of assortment building,” he added. “That’s what drives winning in this marketplace. You must compete on those items and not the lowest price.”

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