MYTHERESA(MYTE)2025-02-11 17:19Financial Data and Key Metrics Changes - In Q2 of fiscal year 2025, the company achieved a net sales growth of 13.4% compared to Q2 of fiscal year 2024, with gross profit increasing by 16% to €113.6 million [38][44] - The adjusted EBITDA margin improved by 350 basis points to 7.3% compared to 3.8% in the prior year quarter [49] - Average order value (AOV) increased by 9.5% to €736, reflecting a successful focus on high-end luxury products [42][16] Business Line Data and Key Metrics Changes - The company's GMV (Gross Merchandise Value) grew by 11.9% in Q2 of fiscal year 2025 compared to the same period last year, driven by a 13.6% increase in GMV per top customer [12][41] - The business with top customers in the U.S. saw a significant GMV growth of 34.7% in Q2 of fiscal year 2025 [15][43] Market Data and Key Metrics Changes - The U.S. market accounted for 20.6% of total net sales, with a net sales growth of 17.6% in Q2 of fiscal year 2025 [13][43] - Europe, including Germany and the UK, experienced a net sales growth of 12.8% in the same quarter [14] Company Strategy and Development Direction - The company is focused on high-spending, wardrobe-building customers, which is a fundamental driver of its success [15][10] - The expected acquisition of YNAP is seen as a strategic move to create a global digital luxury platform, enhancing the company's market position [9][29] - The new group will be branded as LuxExperience, emphasizing a focus on luxury experiences and customer engagement [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the luxury market's recovery, despite ongoing macroeconomic uncertainties [7][78] - The company is confident in achieving its fiscal year 2025 targets, supported by strong performance in the first half of the year [59][57] Other Important Information - The company reported stable return rates and improving cost ratios, indicating operational efficiency [17][45] - The marketing cost ratio increased to 12.3% in Q2, reflecting a strategic investment in customer acquisition [46][94] Q&A Session Summary Question: Thoughts on technology stack and integration opportunities with YNAP - Management indicated a strategy to integrate YNAP's luxury businesses onto the Mytheresa platform, expecting a re-platforming duration of 24 to 36 months [65][66] Question: Current health of the digital luxury backdrop and acceleration in demand - Management noted strong demand from big spenders, particularly in the U.S. and Europe, while acknowledging challenges in Greater China [76][78] Question: Timeline for return to historical high single-digit EBITDA margins - Management expects to return to higher single-digit margins in the medium term, driven by improvements in gross margins [82] Question: Trends of aspirational customers and marketing spend - Management observed growth in aspirational customers, particularly in the U.S. and Europe, and indicated a return to normal marketing spend levels [87][94] Question: Insights on price points and luxury market dynamics - Management confirmed that their business is driven by high-priced items and noted a pause on further price increases [98][100] Question: Top customer profile by region - Management shared that top customers account for close to 40% of revenue, with higher average order values in Greater China and the Arabic Peninsula [112][113]