MYTHERESA(MYTE)2024-11-19 15:52Financial Data and Key Metrics Changes - The first quarter of fiscal year 2025 showed net sales growth of 7.6% year-over-year, reaching EUR201.7 million, with a two-year increase of 15.1% and a three-year increase of 28% [45] - Adjusted EBITDA increased by EUR4.1 million to EUR2.9 million, with an adjusted EBITDA margin improvement of 200 basis points to 1.4% [54][55] - Gross profit increased by 11.5% to EUR88.6 million, with a gross margin of 43.9%, reflecting a 150 basis points increase compared to the prior year [48][49] Business Line Data and Key Metrics Changes - GMV (Gross Merchandise Value) increased by 6.3% to EUR216.6 million, with GMV for top customers growing by 18.8% [17][29] - Average order value (AOV) reached a record high of EUR720, up 9.1% year-over-year [33][47] - The adjusted selling, general and administrative (SG&A) costs increased modestly, leading to a decrease in the adjusted SG&A cost ratio by 50 basis points to 14.0% [53] Market Data and Key Metrics Changes - The United States showed strong revenue growth of 13.6%, accounting for 20% of total GMV in Q1 [30] - European markets experienced net sales growth of 9.8%, while results in China and Asia were impacted by ongoing macro headwinds [31] - The number of top customers in the US grew by 21%, with an increase in average spend per top customer of 17% [76] Company Strategy and Development Direction - The company is focused on the acquisition of YNAP to create a global digital luxury platform, expected to close in the first half of calendar year 2025 [7][8] - The strategy emphasizes building strong relationships with high-spending luxury shoppers and enhancing customer experiences through exclusive events [13][19] - The company aims to maintain profitable growth despite macro uncertainties, with a guidance for GMV and net sales growth between 7% and 13% for the full fiscal year 2025 [61] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in market conditions and consumer sentiment, particularly in the US, which is expected to drive continued growth [11][72] - The company remains confident in its ability to deliver profitable growth, citing a strong business model and operational performance [38][39] - Management highlighted the importance of focusing on high-end luxury products and maintaining a full-price selling strategy to improve gross margins [49][78] Other Important Information - The company reported a decrease in inventory levels by 3.6% year-over-year, achieving target inventory levels in relation to top-line performance [43][59] - A strategic partnership with DHL for the GoGreen Plus initiative aims to reduce CO2 emissions associated with shipments by over 27,000 tons over five years [35] - The company published its third Positive Change Report, highlighting progress in ESG commitments, including a 59% representation of women in leadership positions [36][37] Q&A Session Summary Question: Can you speak to the success with lower return rates? - Management noted that decreasing return rates are driven by customers being more selective and the success with existing high-spending customers who know their sizes well [69] Question: Can you provide color around US growth and any potential noise from macro uncertainty? - Management expressed confidence in continued strong growth in the US, attributing it to ongoing customer engagement and successful events [72] Question: How would you characterize the overall health of your core luxury customer? - Management reported strong performance in the US and Europe, with top customers showing excellent spending growth, while Asia remains a lagging region [76] Question: Can you elaborate on the promotional backdrop and inventory levels? - Management indicated that inventory levels have stabilized, leading to improved gross profit margins, and they expect this trend to continue [78] Question: What is your guidance philosophy regarding gross margin and EBITDA margin? - Management confirmed guidance for a 3% to 5% adjusted EBITDA margin for the full fiscal year, with typical seasonal performance expected in Q1 and Q3 [81]