MYTHERESA(MYTE)2024-09-12 15:27Financial Data and Key Metrics Changes - The company achieved a net sales growth of 13.8% in the second half of fiscal year 2024, with a solid Q4 growth of 9.7% [20][21] - Gross merchandise value (GMV) grew by 7.8% in Q4 of fiscal year 2024 compared to Q4 of fiscal year 2023, leading to a double-digit GMV growth of 11.4% in the second half of fiscal year 2024 [6][7] - The adjusted EBITDA margin improved to 4.3% in the second half of fiscal year 2024, compared to 1.7% in the first half [8][26] Business Line Data and Key Metrics Changes - The average order value (AOV) reached a record high of EUR 703 in Q4 of fiscal year 2024, reflecting a focus on high-end luxury products [17][22] - The top customer base grew by 3.4% in Q4, with average spend per top customer increasing by 4.6% [9][22] - The share of top customers in GMV increased from 32.6% in fiscal year 2021 to 39.2% in fiscal year 2024 [9] Market Data and Key Metrics Changes - The United States was a significant growth driver, with GMV growth of 22.8% in fiscal year 2024 compared to fiscal year 2023 [7] - Europe also experienced net sales growth of 11.2% in Q4 compared to Q4 of fiscal year 2023 [8] - China and Asia faced ongoing macro headwinds, impacting performance [8][40] Company Strategy and Development Direction - The company aims to build a community for luxury enthusiasts and enhance desirability through digital and physical experiences [5][12] - A strategic focus on high-spending top customers is expected to drive growth and market share [4][19] - The company is actively evaluating opportunities to support and accelerate investments in future business growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, expecting normalization in the luxury sector [35][41] - The company anticipates GMV and net sales growth between 7% and 13% for fiscal year 2025, with adjusted EBITDA margins between 3% and 5% [31][32] - Management highlighted the importance of maintaining a focus on top customers and full-price selling [19][48] Other Important Information - The company successfully managed inventory levels, achieving a DIO of 296 days and targeting 260 days by the end of fiscal year 2025 [29][30] - The company closed the fiscal year with no bank debt and a positive operating cash flow of EUR 10 million [28] Q&A Session Summary Question: What is happening with gross margins and inventory levels? - Management acknowledged lower gross margins but expects improved sell-through rates and no further slippage in the upcoming fiscal year [34][36] - Inventory levels are being managed closely, with expectations to reach targeted levels by the end of fiscal year 2025 [37] Question: How do US customers compare to those in Europe and Asia? - US consumer sentiment remains strong, while Europe shows improvement, particularly in southern countries [39][40] - Asia is facing challenges, particularly in China, but there are bright spots in other regions [40] Question: How is sector consolidation influencing the business? - Consolidation is expected to normalize promotional intensity and customer acquisition costs, benefiting quality customer relationships [43][44] Question: What are the expectations for gross profit growth in fiscal 2025? - Gross profit growth is expected to continue, but it will depend on the overall market situation [45] Question: What are the plans for the new Greater China President and the top customers in China? - The company is investing in the Chinese market and focusing on customer engagement, with expectations for recovery in the next 8 to 12 months [54][56]