MYTHERESA(US:MYTE)2023-09-14 17:16Financial Data and Key Metrics Changes - The company reported a GMV growth of 14.5% for the full fiscal year 2023, reaching EUR 855.8 million compared to EUR 747.3 million in the prior year, exceeding market expectations [99] - Net sales increased by 11.4% to EUR 768.6 million for the full fiscal year 2023, up from EUR 689.8 million in the previous year [101] - Adjusted EBITDA for Q4 was EUR 7.4 million, with an adjusted EBITDA margin of 3.6%, while for the full fiscal year, adjusted EBITDA was EUR 41.1 million, representing a margin of 5.3% [77][78] - Gross profit for the full fiscal year was EUR 382.6 million, growing at 7.8%, with a gross profit margin of 49.8% [103][106] Business Line Data and Key Metrics Changes - The average order value (AOV) increased by 4.5% to a record high of EUR 654 for the full fiscal year 2023 [43] - The number of top customers grew by 25% for the full fiscal year, with GMV per top customer increasing by 4.3% [99] - The business with top customers grew by 28.7% in terms of GMV compared to Q4 of fiscal year 2022 [41] Market Data and Key Metrics Changes - The U.S. market saw a GMV growth of 40.8% in Q4 compared to the same quarter in the previous year, accounting for 19.1% of total business [40][58] - The company experienced double-digit GMV growth in Mainland China, although the market remains uncertain [36][58] - The share of top customers in total GMV increased from 32.6% in fiscal year 2021 to 38.5% in fiscal year 2023 [59] Company Strategy and Development Direction - The company focuses on high-spending wardrobe-building customers, which has proven effective in driving growth even in challenging economic conditions [38][55] - A successful transition to a new technology stack and the opening of a new distribution center at Leipzig Airport are expected to enhance operational efficiencies and customer service [39][64] - The company aims to maintain a full-price selling strategy to attract the right customer segments while managing inventory levels effectively [79][81] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for fiscal year 2024, expecting GMV growth of 8% to 13% despite ongoing macroeconomic uncertainties [68][81] - The company anticipates a stronger second half of fiscal year 2024 compared to the first half, driven by improved operational efficiencies and a reduction in promotional pressures [115] - Management highlighted the importance of maintaining brand relationships and preventing inventory aging as key strategies moving forward [79] Other Important Information - The company ended fiscal year 2023 with no bank debt and EUR 30.1 million in cash, indicating strong financial health [111][113] - Marketing expenses rose to EUR 32.1 million in Q4, reflecting increased efforts to engage top customers [108] Q&A Session Summary Question: What are the drivers of regional strengths in the U.S.? - Management noted that the focus on high-end customers has mitigated the slowdown in aspirational customer spending, contributing to strong growth in the U.S. market [119] Question: How does the new distribution center fit into the roadmap? - The new distribution center in Leipzig is expected to enhance customer service and operational efficiencies, with plans for regional distribution centers in the U.S. as growth continues [124] Question: What is the outlook for gross profit margin in H2? - Management expressed confidence in a positive trend for gross profit margins in H2, driven by the company's high-end positioning and full-price focus [134]