MYTHERESA(MYTE) - 2025 Q4 - Annual Report

Customer Engagement and Sales - In fiscal 2025, the top 3.8% of Luxury | Mytheresa customers accounted for approximately 42.6% of its GMV[44] - A significant portion of net sales is generated from existing customers, highlighting the importance of customer retention and engagement[44] - The company invests in exclusive events and personal services for top customers, which are crucial for maintaining relationships and driving sales growth[45] Market Competition and Risks - The online luxury sector is highly competitive, with significant risks from competitors having larger infrastructures and resources[30] - Recent trends in the luxury retail industry have led to several companies filing for protection under local insolvency laws, indicating significant challenges[31] - Economic downturns and inflation could adversely affect customer discretionary spending, impacting sales of luxury fashion merchandise[52] - Changes in political and economic policies in key jurisdictions may negatively affect consumer spending and business operations[53] Operational Challenges - The company must continually adapt to changing fashion trends and customer preferences to avoid excess inventory or markdowns[35] - The distribution model is evolving, which may impact future revenue composition and margins[47] - The company faces challenges in accurately forecasting net sales and managing expenses, which could lead to significant fluctuations in financial performance[65] - Effective inventory management is crucial, as demand can fluctuate significantly, impacting financial results if not managed properly[80] Financial Performance and Growth - Net sales increased from €766.0 million in fiscal 2023 to €1,262.3 million in fiscal 2025, representing a growth of approximately 65%[160] - Recent growth rates may not be sustainable, and future profitability could decline if strategic plans are not successfully executed[66] - The company plans to expand product offerings into new categories, including Mytheresa Kids and fine jewelry, but success is uncertain[62] Integration and Acquisition - The YNAP Acquisition was completed on April 23, 2025, with the acquisition of 100% shares from Richemont, requiring substantial management focus and time[100] - The integration of YNAP is expected to present significant challenges, including the management of an expanded business and employee base, which could adversely affect future results[104] - There is uncertainty regarding the realization of anticipated synergies from the YNAP Acquisition, which may not occur within the expected time frame[102] Regulatory and Compliance Issues - Compliance with SEC and NYSE regulations post-acquisition will require significant resources and may divert management's attention from growth strategies[105] - The company is subject to increasing regulatory scrutiny regarding data privacy and information security, particularly in the EU and UK[136] - The complexity of navigating diverse data protection laws globally may require the company to incur additional costs and restrict business operations[142] Technology and Cybersecurity - System interruptions and performance failures in technology infrastructure could significantly harm the company's business and financial condition[119][120] - Cyberattacks pose a risk to the company's operations, potentially leading to data loss or unauthorized access to sensitive information[125] - The company relies heavily on cloud-based services, which increases the risk of slowdowns or interruptions due to third-party failures[121] Workforce and Labor Costs - Employee headcount grew from 1,817 FTEs as of June 30, 2024, to 4,262 employees as of June 30, 2025, indicating a significant expansion in workforce[161] - The company faces significant competition for qualified personnel, particularly in Munich, which may impact hiring and retention strategies[161] - Minimum wage in Germany is currently €12.82 per hour, with potential increases that could affect labor costs and employee turnover[163] Financial Liabilities and Taxation - The company may face increased tax liabilities due to changes in tax laws and regulations, which could materially impact its financial condition and results of operations[191] - Future tax audits could lead to additional taxes being imposed, potentially increasing the company's tax obligations and affecting its financial results[195] Shareholder Dynamics - Significant Shareholders, including Ares Management Corp., Canada Pension Plan Investment Board, and Richemont, can adopt resolutions in shareholder meetings regardless of other shareholders' votes[223] - Conflicts of interest may arise within the Management Board due to the shareholder structure and affiliations with Significant Shareholders[224]