MYT Netherlands Parent B.V. (NYSE: MYTE) (“Mytheresa” or the “Company”), the parent company of Mytheresa Group GmbH, today announced financial results for its first quarter of fiscal year 2023 ended September 30, 2022. The luxury multi-brand digital platform delivered strong results in the first quarter of accelerated top-line growth with continued profitability. This demonstrates the fundamental strength and consistency of a truly differentiated business with a unique customer focus, a highly adaptive business model and outstanding operational excellence.
Michael Kliger, Chief Executive Officer of Mytheresa, said, “Our acceleration in GMV growth during the quarter over the previous quarters in 2022 sets us apart from other digital platforms and the sole focus on the high-end luxury sector, both in terms of customers as well as brands, makes us foremost a luxury business and not just a digital business. We believe that our results demonstrate the fundamental strength, resilience and consistency of our business, which has always delivered profitable growth. With our unique customer focus, a highly adaptive business model and operational excellence we are very confident to deliver against our communicated targets for full fiscal year 2023, despite ongoing challenges in the macro environment.”
Kliger continued, “The Mytheresa business model is well diversified and agile. We achieved growth across all our categories including our recently launched Life category with home and lifestyle products as well as across all geographies. We achieved again an above average GMV growth in the US where we continue to win clients due to our unique edit and the many ‘money can’t buy experiences’ for our top customers. We also achieved very good growth in Mainland China, where we grow our local teams and invest into activations under our new local leadership.”
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2022
RECENT BUSINESS HIGHLIGHTS
Strong Global Expansion:
Continued Brand Partnerships:
High-quality Customer Growth:
Consistent Strong Operational Performance:
BUSINESS OUTLOOK
For the full fiscal year ending June 30, 2023, we confirm our previous guidance:
For the medium-term we confirm our targets of annual GMV Growth of 22% to 25% as well as an Adjusted EBITDA margin around 9% to 10%.
The foregoing forward-looking statements reflect Mytheresa’s expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Mytheresa does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
CONFERENCE CALL AND WEBCAST INFORMATION
Mytheresa will host a conference call to discuss its first quarter of fiscal year 2023 financial results on November 8, 2022 at 8:00am Eastern Time. Those wishing to participate via webcast should access the call through Mytheresa’s Investor Relations website at https://investors.mytheresa.com. Those wishing to participate via the telephone may dial in at +1 (877) 269-7751 (USA) or +1 (201) 389-0908 (International). The passcode will be 13733608. The conference call replay will be available via webcast through Mytheresa’s Investor Relations website. The telephone replay will be available from 11:00am Eastern Time on November 8, 2022, through November 15, 2022, by dialing +1 (844) 512-2921 (USA) or +1 412 317 6671 (International). The replay passcode will be 13733608.
FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to the impact of the COVID-19 global pandemic; the impact of restrictions on use of identifiers for advertisers (IDFA); future sales, expenses, and profitability; future development and expected growth of our business and industry; our ability to execute our business model and our business strategy; having available sufficient cash and borrowing capacity to meet working capital, debt service and capital expenditure requirements for the next twelve months; and projected capital spending. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements are only predictions. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below.
We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.
Further information on these and other factors that could affect our financial results is included in filings we make with the U.S. Securities and Exchange Commission (“SEC”) from time to time, including the section titled “Risk Factors” included in the form 20-F filed on October 15, 2021 under Rule 424(b)(4) of the Securities Act. These documents are available on the SEC’s website at www.sec.gov and on the SEC Filings section of the Investor Relations section of our website at: https://investors.mytheresa.com.
ABOUT NON-IFRS FINANCIAL MEASURES AND OPERATING METRICS
We review a number of operating and financial metrics, including the following business and non-IFRS metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. We present Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income and Adjusted EBITDA Margin as well as Adjusted Operating Income Margin and Adjusted Net Income Margin because they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe these measures are helpful in highlighting trends in our operating results, because they exclude the impact of items that are outside the control of management or not reflective of our ongoing operations and performance. Adjusted EBITDA, Adjusted Operating Income, and Adjusted Net Income have limitations, because they exclude certain types of expenses. We use Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income as well as Adjusted EBITDA Margin, Adjusted Operating Income Margin and Adjusted Net Income Margin as supplemental information only. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis.
Our non-IFRS financial measures include:
We are not able to forecast net income (loss) on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect net income (loss), including, but not limited to, Income taxes and Interest expense and, as a result, are unable to provide a reconciliation to forecasted Adjusted EBITDA.
Gross Merchandise Value (GMV) is an operative measure and means the total Euro value of orders processed. GMV is inclusive of merchandise value, shipping and duty. It is net of returns, value added taxes, applicable sales taxes and cancellations. GMV does not represent revenue earned by us. We use GMV as an indicator for the usage of our platform that is not influenced by the mix of direct sales and commission sales. The indicators we use to monitor usage of our platform include, among others, active customers, total orders shipped and GMV.
ABOUT MYTHERESA
Mytheresa is one of the leading global luxury fashion e-commerce platforms shipping to over 130 countries. Founded as a boutique in 1987, Mytheresa launched online in 2006 and offers ready-to-wear, shoes, bags and accessories for womenswear, menswear and kidswear. In 2022, Mytheresa expanded its luxury offering to home décor and lifestyle products with the launch of the category “LIFE”. The highly curated edit of over 200 brands focuses on true luxury brands such as Bottega Veneta, Burberry, Dolce&Gabbana, Gucci, Loewe, Loro Piana, Moncler, Prada, Saint Laurent, Valentino, and many more. Mytheresa’s unique digital experience is based on a sharp focus on high-end luxury shoppers, exclusive product and content offerings, leading technology and analytical platforms as well as high quality service operations. The NYSE listed company reported €747.3 million GMV in fiscal year 2022 (+21.3% vs. FY21).
For more information, please visit https://investors.mytheresa.com.
MYT Netherlands Parent B.V.
Financial Results and Key Operating Metrics
(Amounts in € millions)
Three Months Ended
September 30,
2021
September 30,
2022
Change
in % / BPs
(in millions) (unaudited)
Gross Merchandise Value (GMV) (1)
€ 163.9
€ 197.9
20.8%
Active customer (LTM in thousands) (1), (2)
705
800
13.4%
Total orders shipped (LTM in thousands) (1), (2)
1,580
1,839
16.4%
Net sales
€ 157.8
€ 175.9
11.4%
Gross profit
€ 77.3
€ 87.8
13.6%
Gross profit margin(3)
49.0%
49.9%
90 BPs
Adjusted EBITDA(4)
€ 14.0
€ 11.6
(17.4%)
Adjusted EBITDA margin(3)
8.9%
6.6%
(230 BPs)
Adjusted Operating Income(4)
€ 11.8
€ 9.0
(23.6%)
Adjusted Operating Income margin(3)
7.5%
5.1%
(240 BPs)
Adjusted Net Income(4)
€ 8.2
€ 6.1
(26.1%)
Adjusted Net Income margin(3)
5.2%
3.5%
(170 BPs)
(1) Definition of GMV, Active customer and Total orders shipped can be found on page 27 in our Interim Report.
(2) Active customers and total orders shipped are calculated based on orders shipped from our sites during the last twelve months
(LTM) ended on the last day of the period presented.
(3) As a percentage of net sales.
(4) Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income and Adjusted EBITDA Margin, Adjusted Operating Margin and
Adjusted Net Income Margin are measures not defined under IFRS. For further information about how we calculate these
measures and limitations of its use, see the following pages.
MYT Netherlands Parent B.V.
Financial Results and Key Operating Metrics
(Amounts in € millions)
The following tables set forth the reconciliations of net income to adjusted EBITDA, operating income to adjusted operating income and net income to adjusted net income, and their corresponding margins as a percentage of net sales:
Three Months Ended
September 30, 2021
September 30,
2022
Change
in %
(in millions) (unaudited)
Net income
€ (7.3)
€ (3.8)
(47.8%)
Finance expenses, net
€ 0.2
€ 0.4
96.8%
Income tax expense
€ 3.4
€ 2.6
(24.3%)
Depreciation and amortization
€ 2.2
€ 2.5
16.7%
thereof depreciation of right-of use assets
€ 1.3
€ 1.7
27.9%
EBITDA
€ (1.5)
€ 1.7
(211.7%)
Other transaction-related, certain legal and other expenses (1)
€ 0.0
€ 1.5
N/A
IPO related share-based compensation(2)
€ 15.5
€ 8.4
(45.7%)
Adjusted EBITDA
€ 14.0
€ 11.6
(17.4%)
Reconciliation to Adjusted EBITDA Margin
Net Sales
€ 157.8
€ 175.9
11.4%
Adjusted EBITDA margin
8.9%
6.6%
(230 BPs)
Three Months Ended
September 30,
2021
September 30,
2022
Change
in %
(in millions) (unaudited)
Operating Income
€ (3.7)
€ (0.9)
(76.9%)
Other transaction-related, certain legal and other expenses (1)
€ 0.0
€ 1.5
N/A
IPO related share-based compensation(2)
€ 15.5
€ 8.4
(45.7%)
Adjusted Operating Income
€ 11.8
€ 9.0
(23.6%)
Reconciliation to Adjusted Operating Income Margin
Net Sales
€ 157.8
€ 175.9
11.4%
Adjusted Operating Income margin
7.5%
5.1%
(240 BPs)
Three Months Ended
September 30,
2021
September 30,
2022
Change
in %
(in millions) (unaudited)
Net Income
€ (7.3)
€ (3.8)
(47.8%)
Other transaction-related, certain legal and other expenses(1)
€ 0.0
€ 1.5
N/A
IPO related share-based compensation(2)
€ 15.5
€ 8.4
(45.7%)
Adjusted Net Income
€ 8.2
€ 6.1
(26.1%)
Reconciliation to Adjusted Net Income Margin
Net Sales
€ 157.8
€ 175.9
11.4%
Adjusted Net Income margin
5.2%
3.5%
(170 BPs)
(1) Other transaction-related, certain legal and other expenses represents (i) certain legal expenses incurred outside the ordinary
course of our business and (ii) other non-recurring expenses incurred in connection with the costs of establishing our new central
warehouse in Leipzig, Germany.
(2) In fiscal 2021, with the effective IPO, certain key management personnel received a one-time granted share-based compensation,
for which the share-based compensation expense will be recognized upon defined vesting schedules in the future periods,
including €8.4 million for the three months ended September 30, 2022. We do not consider these expenses to be indicative of our
core operating performance.
MYT Netherlands Parent B.V.
Unaudited Condensed Consolidated Statements of Profit or Loss and Comprehensive Income
(Amounts in € thousands, except share and per share data)
Three Months Ended
(in € thousands)
September 30, 2021
September 30, 2022
Net sales
157,832
175,890
Cost of sales, exclusive of depreciation and amortization
(80,516)
(88,095)
Gross profit
77,316
87,795
Shipping and payment cost
(19,966)
(24,029)
Marketing expenses
(22,427)
(25,354)
Selling, general and administrative expenses
(36,158)
(37,643)
Depreciation and amortization
(2,182)
(2,547)
Other income (loss), net
(281)
926
Operating income
(3,699)
(853)
Finance income
–
4
Finance costs
(189)
(376)
Finance income (costs), net
(189)
(372)
Loss before income taxes
(3,888)
(1,225)
Income tax expense
(3,408)
(2,581)
Net loss
(7,296)
(3,806)
Cash Flow Hedge
(1,081)
(3,059)
Income Taxes related to Cash Flow Hedge
267
854
Foreign currency translation
(25)
(25)
Other comprehensive loss
(839)
(2,230)
Comprehensive loss
(8,136)
(6,036)
Basic & diluted earnings per share
€
(0.09)
€
(0.04)
Weighted average ordinary shares outstanding
(basic and diluted) – in millions
84.5
86.5
MYT Netherlands Parent B.V.
Unaudited Condensed Consolidated Statements of Financial Position
(Amounts in € thousands)
(in € thousands)
June 30, 2022
September 30, 2022
Assets
Non-current assets
Non-current financial assets
294
642
Intangible assets and goodwill
155,223
155,125
Property and equipment
17,691
22,056
Right-of-use assets
21,677
45,829
Deferred tax assets
6,090
6,090
Total non-current assets
200,975
229,742
Current assets
Inventories
230,144
262,197
Trade and other receivables
8,276
6,145
Other assets
61,874
32,606
Cash and cash equivalents
113,507
87,891
Total current assets
413,801
388,840
Total assets
614,776
618,582
Shareholders’ equity and liabilities
Subscribed capital
1
1
Capital reserve
498,872
509,494
Accumulated Deficit
(68,734)
(72,540)
Accumulated other comprehensive income (loss)
1,528
(702)
Total shareholders’ equity
431,667
436,252
Non-current liabilities
Provisions
758
2,621
Lease liabilities
16,817
39,362
Deferred tax liabilities
3,661
4,116
Total non-current liabilities
21,237
46,099
Current liabilities
Tax liabilities
25,892
21,963
Lease liabilities
5,189
5,285
Contract liabilities
10,746
6,341
Trade and other payables
45,156
34,968
Other liabilities
74,889
67,675
Total current liabilities
161,872
136,232
Total liabilities
183,109
182,330
Total shareholders’ equity and liabilities
614,776
618,582
MYT Netherlands Parent B.V.
Unaudited Condensed Consolidated Statements of Changes in Equity
(Amounts in € thousands)
(in € thousands)
Subscribed
capital
Capital
reserve
Accumulated
deficit
Hedging
reserve
Foreign currency
translation
reserve
Total
shareholders’
equity
Balance as of July 1, 2021
1
444,951
(60,837)
–
1,602
385,718
Net loss
–
–
(7,296)
–
–
(7,296)
Other comprehensive loss
–
–
–
(814)
(25)
(839)
Comprehensive loss
–
–
(7,296)
(814)
(25)
(8,136)
Share-based compensation
–
16,134
–
–
–
16,134
Balance as of September 30, 2021
1
461,086
(68,133)
(814)
1,577
393,716
Balance as of July 1, 2022
1
498,872
(68,734)
–
1,528
431,667
Net loss
–
–
(3,806)
–
–
(3,806)
Other comprehensive loss
–
–
–
(2,205)
(25)
(2,230)
Comprehensive loss
–
–
(3,806)
(2,205)
(25)
(6,036)
Share options exercised
–
1,077
–
–
–
1,077
Share-based compensation
–
9,544
–
–
–
9,544
Balance as of September 30, 2022
1
509,494
(72,540)
(2,205)
1,503
436,252
MYT Netherlands Parent B.V.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in € thousands)
Three months ended September 30,
(in € thousands)
2021
2022
Net loss
(7,296)
(3,806)
Adjustments for
Depreciation and amortization
2,182
2,547
Finance (income) costs, net
189
372
Share-based compensation
16,134
9,544
Income tax expense
3,408
2,581
Change in operating assets and liabilities
(Decrease) increase in provisions
17
1,863
(Increase) decrease in inventories
(17,901)
(32,053)
(Increase) decrease in trade and other receivables
1,274
2,130
Decrease (increase) in other assets
(506)
29,962
(Decrease) increase in other liabilities
3,713
(10,936)
Increase (decrease) in contract liabilities
(3,202)
(4,405)
Increase (decrease) in trade and other payables
(16,336)
(10,253)
Decrease (increase) in non-current financial assets
(13)
(343)
Income taxes paid
(831)
(5,207)
Net cash used in operating activities
(19,166)
(18,004)
Expenditure for property and equipment and intangible assets
(356)
(5,092)
Net cash (used in) investing activities
(356)
(5,092)
Interest paid
(189)
(372)
Proceeds from exercise of option awards
–
1,077
Payment of lease liabilities
(1,339)
(3,234)
Net cash used in financing activities
(1,528)
(2,530)
Net decrease in cash and cash equivalents
(21,050)
(25,625)
Cash and cash equivalents at the beginning of the period
76,760
113,507
Effects of exchange rate changes on cash and cash equivalents
(25)
10
Cash and cash equivalents at end of the period
55,685
87,891
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