The luxury online shopping industry is going through big changes, with Mytheresa coming out as a potential winner while its competitors face challenges.
Michael Kliger, the CEO of Mytheresa, is confident about the company’s position. He pointed out that the stock market has reacted positively to their plans.
Even though Mytheresa’s value has dropped from $2.3 billion when it first went public in 2021 to about $362.5 million now, its share price has gone up by more than 30% this year.
This increase shows that investors believe in the company’s ability to grow despite the industry’s problems.
Challenges in the Industry
The luxury online shopping industry is struggling. Some of Mytheresa’s competitors are having a hard time.
Farfetch was sold to Coupang to avoid going bankrupt, and Matchesfashion went into administration under Mike Ashley’s Frasers group.
Also, Richemont has been trying to sell its online retail division Yoox-Net-a-Porter after losing money for years. These situations show that there are big problems in the industry, especially for platforms that try to grow quickly without making profits. This led to high costs and disagreements with luxury brands over discounting.
How Mytheresa Stands Out
Mytheresa sets itself apart by targeting wealthier, slightly older shoppers and offering a curated shopping experience. The company doesn’t discount its products too much.
Instead, it focuses on attracting customers who care more about the exclusivity and quality of the products than getting discounts.
This approach helps Mytheresa maintain good relationships with luxury brands and offer special products, like collections with Dolce & Gabbana and early pieces from Gucci’s new creative director, Sabato de Sarno.
About 10% of Mytheresa’s products at any given time are exclusive, catering to customers with busy social lives who want luxury clothing.
Financial Performance and Future
Despite the challenges in the online shopping and luxury industries, Mytheresa’s sales went up by at least 15% to €230 million in the last quarter ending March 31, with better profit margins.
However, the company still reported a loss for 2023, which Kliger said was a tough year for the industry. Mytheresa focuses on a specific group of customers and manages to make a small profit, making it a strong player in the luxury online shopping market.
The fact that the founders originally owned boutiques shows the company’s dedication to a retail-oriented approach in the online shopping world.
