MYTHERESA(MYTE) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Gross merchandise value (GMV) increased by 26.2% year-over-year to €200.2 million, exceeding the long-term guidance of 22% to 25% annual growth [9][28] - Net sales rose by €29 million or 18.3% year-over-year to €187.6 million, slightly lower than GMV growth due to brands transitioning to the Curated Platform Model (CPM) [31] - Gross profit increased by €21.5 million or 27.4% year-over-year to €100.1 million, with a gross profit margin of 53.4%, up from 49.5% [33] - Adjusted EBITDA grew by 27.8% to €28.3 million, with an adjusted EBITDA margin of 15.1% [38] - Adjusted net income increased by 27.3% to €18.9 million [41] Business Line Data and Key Metrics Changes - The U.S. market saw a significant net sales growth of 74.2% compared to the prior year, now accounting for 16.3% of total business [11] - Mainland China net sales grew by 51.7%, indicating strong performance in that region [12] - New categories such as kidswear and menswear accounted for 15.7% of total business, showing successful expansion into these segments [12] Market Data and Key Metrics Changes - The U.S. luxury market is experiencing a shift, with consumers moving towards online shopping, filling a void in the luxury retail landscape [11] - It is estimated that over 30% of personal luxury goods spending will be online by 2025, representing a significant market opportunity [10] Company Strategy and Development Direction - The company aims for long-term growth of 22% to 25% annually, driven by online consumer shifts and untapped geographic potential [7][13] - The Curated Platform Model (CPM) is being successfully implemented, allowing for better inventory management and brand partnerships [16][32] - The focus on high-value multi-brand customer relationships is a key differentiator, enhancing brand collaborations and customer engagement [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the volatile market and maintain operational excellence, which drives customer loyalty and financial results [8][24] - The company anticipates continued growth despite potential challenges from inflation and supply chain disruptions, with a strong focus on maintaining profitability [45][82] Other Important Information - The company plans to publish its ESG commitment, focusing on sustainability and responsible growth [23] - The financial position remains strong with cash and cash equivalents of €79.7 million and no bank liabilities [42] Q&A Session Summary Question: Market share opportunity and untapped category potential - Management believes there are significant opportunities in luxury lifestyle categories and that travel will not detract from online sales [54] Question: EBITDA margin outlook and profitability - The EBITDA margin is expected to stabilize at 9% to 10%, with potential for higher margins as customer loyalty increases [56] Question: GMV and CPM model expectations - CPM is expected to account for well below 20% of GMV this fiscal year, with medium-term expectations below 35% [60] Question: U.S. market strategies - A local team has been established to enhance customer engagement and capitalize on the growing luxury demand in the U.S. [64] Question: Customer acquisition and churn - The company continues to see growth in online luxury shopping, with a significant number of new customers acquired during the pandemic [86]