MYTHERESA(US:MYTE)2024-05-15 10:00Financial Performance - Gross Merchandise Value (GMV) increased by 14.7% year-over-year to €252.2 million for the three months ended March 31, 2024[8] - Active customers rose by 2.8% year-over-year, reaching 862,000 for the three months ended March 31, 2024[8] - Net sales grew by 17.6% year-over-year to €233.9 million for the three months ended March 31, 2024[8] - Adjusted EBITDA surged by 183.8% year-over-year to €9.2 million for the three months ended March 31, 2024[12] - Adjusted Operating Income increased significantly by 4675.1% year-over-year to €5.3 million for the three months ended March 31, 2024[12] - Net loss decreased by 41.7% year-over-year to €3.0 million for the three months ended March 31, 2024[14] - Adjusted Net Income rose by 193.9% year-over-year to €4.1 million for the three months ended March 31, 2024[14] - Net sales for the three months ended March 31, 2024, increased to €233,896 thousand, up from €198,883 thousand in the same period of 2023, representing a growth of 17.6%[20] - Gross profit for the three months ended March 31, 2024, was €101,605 thousand, compared to €90,746 thousand in 2023, reflecting an increase of 12.5%[20] - The company reported an operating loss of €1,778 thousand for the three months ended March 31, 2024, compared to an operating loss of €6,419 thousand in the same period of 2023, showing an improvement of 72.3%[20] - Mytheresa Group reported net sales of €233,896 thousand for the three months ended March 31, 2024, representing a 17.6% increase from €198,883 thousand in the same period of 2023[55] - For the nine months ended March 31, 2024, net sales reached €618,703 thousand, up 9.5% from €564,866 thousand in the prior year[57] Cost and Expenses - Gross profit margin declined by 220 basis points to 43.4% for the three months ended March 31, 2024[8] - Operating loss margin improved by 240 basis points to (0.8%) for the three months ended March 31, 2024[8] - Marketing expenses decreased to €23,090 thousand for the three months ended March 31, 2024, down from €25,729 thousand in 2023, a reduction of 10.1%[20] - Cost of sales increased by €24.2 million from €108.1 million in Q1 2023 to €132.3 million in Q1 2024, representing 56.6% of net sales[153] - Shipping and payment costs rose by €7.8 million or 24.8% in Q1 2024, totaling €39.3 million, which is 16.8% of net sales[156] - Selling, general and administrative (SG&A) expenses increased by €0.9 million from €36.2 million in Q1 2023 to €37.1 million in Q1 2024, accounting for 15.9% of net sales[163] - Depreciation and amortization expenses increased from €3.1 million in Q1 2023 to €3.9 million in Q1 2024, due to higher depreciation related to the new warehouse in Leipzig[170] Assets and Liabilities - Total assets decreased from €693,971 thousand as of June 30, 2023, to €680,932 thousand as of March 31, 2024, a decline of 1.6%[24] - Cash and cash equivalents decreased significantly from €30,136 thousand at the beginning of the period to €10,587 thousand at the end of the period, a reduction of 64.8%[30] - The company’s accumulated deficit increased from €83,855 thousand as of June 30, 2023, to €104,123 thousand as of March 31, 2024, an increase of 24.2%[24] - The total current liabilities slightly increased from €193,652 thousand as of June 30, 2023, to €194,262 thousand as of March 31, 2024, an increase of 0.3%[24] - Financial assets as of March 31, 2024, included trade and other receivables of €13,980 thousand and cash and cash equivalents of €10,587 thousand[101] - The Group's non-current financial liabilities included lease liabilities of €42,796 thousand as of March 31, 2024[101] Operational Initiatives - The company plans to establish a new central warehouse in Leipzig, Germany, incurring certain non-recurring expenses related to this initiative[14] - The company is investing in operations and infrastructure, including a new warehouse in Leipzig and a new IT platform, to support growth and enhance customer offerings[135] - The curated platform model (CPM) allows the company to maintain customer relationships and manage order fulfillment, with inventory owned by brand partners until delivery[137] Market and Economic Conditions - Inflationary pressures are affecting customer prices, with expected increases in retail prices from suppliers considered in the pricing strategy[112] - The luxury product market shows resilience to inflation, but macro-economic factors like rising interest rates may negatively impact customer demand[112] - Management anticipates that the ongoing economic uncertainties may continue to pose challenges, but does not expect long-term adverse effects on the business[113] - Online penetration of luxury personal goods is expected to increase from 21% to 33% from 2021 to 2025, with the global luxury market projected to reach €540-580 billion by 2030, more than double its size in 2020[132] Financing Activities - The company has entered into a new Revolving Credit Facility agreement totaling €75.0 million, which will mature in September 2026[63] - Net cash inflow from financing activities for the three months ended March 31, 2024, was €20.5 million, compared to a cash outflow of €3.6 million in the same period of 2023[186] - The new Revolving Credit Facility agreement totals €75.0 million, which replaced the existing facilities and has a maturity until September 2026[177] Share-Based Compensation - A total of 6,478,761 share options were granted to 21 key management members under the Alignment Grant, with a weighted average historical share price of USD 31[71] - 1,875,677 phantom shares were granted to 21 key management members under the Restoration Grant, also based on a weighted average historical share price of USD 31[72] - Share-based compensation expense recognized for the nine months ended March 31, 2024, was €14,321 thousand, down from €25,250 thousand in the previous year[95] - As of March 31, 2024, the number of outstanding share options under the Alignment award was 6,132,628, with a weighted average exercise price of $8.63[97]