MYTHERESA(US:MYTE)2023-02-25 16:58Financial Data and Key Metrics Changes - Mytheresa reported a gross merchandise value (GMV) of €215.9 million for Q2 of fiscal year 2023, representing a 7.8% increase compared to the same quarter in the previous year [17] - The adjusted EBITDA margin was 9.3%, with adjusted operating income at 7.9% and adjusted net income margin at 5.8% [24] - Net sales increased by 1.3% to €190.1 million, impacted by brands transitioning to the curated platform model [19] - The gross profit margin improved to 54.8%, an increase of 140 basis points from the prior year [20] Business Line Data and Key Metrics Changes - The top customer base grew by 25.3% compared to Q2 of fiscal year 2022, while the total number of customers increased by 8.8% [13] - Average order value (AOV) increased by 4.3% in Q2 of fiscal year 2023 compared to the previous year [15] - Customer acquisition costs (CAC) rose by 15.5%, attributed to a focus on acquiring higher-quality customers with greater lifetime value [15] Market Data and Key Metrics Changes - GMV growth in Europe was 3.7%, while Mainland China experienced a contraction of 32.3% [14] - The United States achieved GMV growth of 12.7%, continuing to be a key growth market [14] - The share of net sales outside Europe increased from 41% in Q2 fiscal year 2022 to 45% in Q2 fiscal year 2023 [20] Company Strategy and Development Direction - Mytheresa focuses on high-end wardrobe building customers, distancing itself from aspirational luxury shoppers who are more affected by economic downturns [12] - The company aims to maintain strong profitability through a resilient and agile business model, emphasizing full-price selling and cost variability [12] - Mytheresa confirmed its medium- to long-term target of GMV growth rates above 20% [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full fiscal year 2023 targets despite macroeconomic challenges, citing a resilient customer base and operational excellence [9] - The company noted signs of recovery in luxury spending, particularly among top customers, as economic conditions improve [18] - Management anticipates a rebound in Greater China and expects Europe to perform better compared to the previous year due to low comparables [84] Other Important Information - Mytheresa's marketing expenses increased to €28.8 million in Q2, reflecting a stable marketing cost ratio despite higher customer acquisition costs [49] - The company ended the quarter with cash and cash equivalents of €52 million and no bank debt [51] Q&A Session Summary Question: What are the strategies to convert recent customer additions into top customers? - Management highlighted the importance of engaging high-quality customers and noted a 25% increase in top customer numbers, indicating success in attracting high-spending customers [60] Question: Can you elaborate on the drivers of gross profit dollar growth in the back half of the year? - Management indicated that gross profit margins are expected to stabilize, with a focus on maintaining high full-price sales and managing inventory effectively [30] Question: How is the company addressing the inventory situation? - Management confirmed that inventory levels are in line with budget expectations, with a record low of older seasons, allowing for targeted growth in upcoming months [57]