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MYTHERESA(MYTE) - 2021 Q2 - Earnings Call Transcript
MYTHERESAMYTHERESA(US:MYTE)2021-02-26 17:37

Financial Data and Key Metrics Changes - Net sales increased by €39.2 million or 32.9% year-over-year to €158.6 million [22] - Gross profit rose by €20.2 million or 34.6% year-over-year to €78.6 million, with a gross profit margin of 49.5% [23][16] - Adjusted EBITDA increased to €22.1 million from €12.9 million in the prior year quarter, with an adjusted EBITDA margin expansion of 318 basis points to 14% of net sales [27] Business Line Data and Key Metrics Changes - Menswear business accounted for more than 10% of net sales in December, indicating strong growth in new categories [14] - The number of active customers grew by 28.2% to 569,000, with total orders shipped increasing by 24.4% to 1.256 million [22] Market Data and Key Metrics Changes - The digital share of global luxury fashion is projected to reach over 30% by 2025, representing a market of approximately €110 billion [7] - The company is experiencing positive momentum in customer engagement, benefiting from COVID-related tailwinds due to store closures in several regions [20] Company Strategy and Development Direction - The company aims to continue investing heavily in growth while maintaining current profitability levels [12] - Mytheresa focuses on high-end wardrobe building customers and aims to retain a competitive lead through curated offerings and exclusive events [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that while current results are benefiting from COVID-related tailwinds, they expect a slowdown in Q3 and Q4 as stores reopen [20] - The company maintains a long-term target of low to mid-20s net sales growth and stable adjusted EBITDA margins, despite potential fluctuations due to the pandemic [36] Other Important Information - The company ended the quarter with cash and cash equivalents of €5.2 million and is now debt-free after repaying shareholder loans with IPO proceeds [34][33] - The company expects net sales in the range of €565 million to €580 million for the second half of the fiscal year, representing 26% to 29% year-over-year growth [35] Q&A Session Summary Question: Expansion of brand partnerships - Management is in discussions with major brands to expand product assortments and improve partnerships, but no specific financial details are disclosed at this stage [42] Question: Record number of first-time buyers - The record of over 100,000 new first-time buyers is attributed to both COVID-related store closures and the company's strong trajectory, indicating that this growth would have occurred regardless [44] Question: Online luxury penetration forecast - Management has not embedded any acceleration into their forecasts despite the pandemic's impact, maintaining the expectation of reaching over 30% online luxury penetration by 2025 [48] Question: Drivers of gross margin strength - The stable gross margin is attributed to a higher share of full-price sales, which is a key characteristic of the company's business model [55] Question: Forward guidance on margins - The company expects a decrease in EBITDA margin in the second half of the fiscal year due to reduced COVID tailwinds and increased public company costs [61] Question: Digital trends in markets with controlled COVID - Management notes that while some markets are seeing strong digital trends, they refrain from making predictions based on these observations, focusing instead on a consistent growth strategy [66]