Mytheresa Reports Slower Sales Growth
Even online luxury's most stable force isn't immune to industry headwinds.
Mytheresa's sales grew a paltry 4 percent to €243 million ($273 million) in the quarter that ended in March, down from the 13 percent growth it reported in the previous quarter and the 18 percent increase it saw during the same period last year. The slowdown was driven, in part, by a lower sales uptick in the US — previously one of the German e-tailer's strongest markets — which increased 4 percent during the quarter; revenue in the region rose 18 percent in the prior quarter.
The results marked the end of a hot streak for the e-tailer, which generated more than 10 percent growth in three of its last four quarters despite a broader luxury slump. Still, the company's focus on wooing top spending clients with 'money-can't-buy' experiences like visits to Alaia's knitwear factory or intimate cocktails with Pucci's creative director, Camille Miceli, continues to pay off elsewhere in the business: its average spend per top customer grew 18 percent; and its average order value jumped 9 percent to €753 during the quarter.
With top customers spending more per transaction, and returning less frequently, Mytheresa maintained a healthy 4 percent profit margin on its adjusted earnings before interest, taxes, depreciation and amortisation.
While Mytheresa's slower US growth predates the higher tariffs imposed by US President Donald Trump in April, it's a symptom of shifting consumer behaviour that was already underway. Consumer sentiment in the US dropped 18 percent year over year in the first three months of 2025 amid prolonged recession fears, according to the University of Michigan, which has only been exacerbated by tariff turmoil. Mytheresa now expects sales growth for its fiscal year, which ends in June, to land closer to 7 percent than the previous stretch goal of 13 percent, said Michael Kliger, the company's chief executive.
'I don't have any specific understanding of what will happen in the next two months other than uncertainty, and that is a problem,' Kliger said. 'What is really needed for companies to operate and for consumers to adapt to is stability.'
Mytheresa's ability to retain profitable growth is more important than ever as it enters the most critical period in its history. In April, the company completed its acquisition of former rival Yoox Net-a-Porter. The combined quantity, now called LuxExperience, is expected to generate €4 billion in gross merchandise value by 2029, making it the biggest player in online luxury.
To get there, LuxExperience has to recharge sales growth at YNAP — the company's sales dropped 15 percent in the quarter that ended last June. LuxExperience is enlisting the help of former employees for that turnaround: Toby Bateman and Jeremy Langmead — founding members at Mr Porter — are returning to the site as chief executive and brand director, respectively; Net-a-Porter's former vice president of global marketing and Mytheresa's North American president, Heather Kaminetsky, will succeed Alison Loehnis as CEO. LuxExperience will announce its post-acquisition plans to investors on Thursday.
'What [investors] want to know in regard to LuxExperience is not what will you do in the next three months,' Kliger said, 'they want to know what is the plan for the next three years.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
Flekken joins Leverkusen as Kelleher replaces him at Brentford
Then Freiburg goalkeeper Mark Flekken gestures during the German Bundesliga soccer match between SC Freiburg and Bayer Leverkusen at Europa-Park Stadion. Goalkeeper Mark Flekken has returned to the Bundesliga and joined Bayer Leverkusen from Brentford, who in turn have signed Liverpool's Caoimhin Kelleher to replace him. Tom Weller/dpa Goalkeeper Mark Flekken has returned to the Bundesliga and joined Bayer Leverkusen from Brentford, who in turn have signed Liverpool's Caoimhin Kelleher to replace him. Leverkusen announced in a statement on Tuesday that the Netherlands goalkeeper, who was previously at Freiburg, has signed a contract until 2028. Advertisement The 31-year-old has played for Brentford in the English Premier League for the past two seasons. Media reports estimated the transfer at €10 million ($11.4 million). "He knows the Bundesliga from his successful time in Freiburg. His years in England and his role in the Dutch national team have also given Mark a great deal of international experience. We are therefore very well positioned in the goalkeeper positions for the coming years," Leverkusen sporting director Simon Rolfes said. Flekken is expected to become the new number one for the 2024 German champions, who are now coached by another Dutchman in Erik ten Hag. Last season, Lukas Hradecky and Matej Kovar shared the role, but Kovar in particular struggled as Leverkusen finished second in the Bundesliga. Advertisement Brentford immediately replaced Flekken with Ireland goalkeeper Kelleher from Liverpool for £18 million ($25.5 million). A statement said the Premier League champion had penned a five-year deal. Kelleher was playing second fiddle to Alisson Becker at Liverpool and the July arrival of Valencia's Georgia international Giorgi Mamardashvili at Anfield was set to limit his chances further. "I felt for my own career that the time was right for me to go, to be a number one and to play every week," he said.
Yahoo
43 minutes ago
- Yahoo
Russian billionaire says replacement of SAP software is costly but essential
MOSCOW (Reuters) -Russian steel billionaire Alexey Mordashov said that developing a homegrown alternative to the widely-used business software made by Germany's SAP will require more time and money than anticipated but is a matter of survival. SAP, which became Europe's largest company by market capitalization this year, makes software that helps businesses manage functions from marketing and human resources to logistics and procurement. SAP provided software to Russia's largest companies, including airline carrier Aeroflot and Russian Railways, but gradually curtailed its business in response to Moscow dispatching troops to Ukraine in 2022 and stopped operations in March 2024. Steelmaker Severstal, owned by Mordashov, and petrochemicals firm Sibur have jointly sought to develop an alternative to SAP software. "We have done a lot to study this issue over the past year, but it turned out that everything is much more expensive and complicated, requiring more meticulous refinement," he said at a technology conference. "We understand the importance of this task... because we need to survive," he added. SAP held up to 60% of the Russian market for business software before the Ukraine conflict, with the rest mostly divided between Microsoft and Oracle. Currently, many Russian companies are still using pre-installed SAP software but lack access to updates and support from the German company, making their systems vulnerable to failures. Mordashov's statement highlighted the difficulties experienced by Russian companies as they try to develop alternatives to Western software amid Western sanctions. Severstal and Sibur initially teamed up with domestic software maker Consist but have since exited the partnership. Severstal is now looking into solutions provided by developer Business Technologies. Other Russian companies like Russian Railways and oil firm Gazpromneft have chosen to cooperate with developer 1C, and are planning to launch a domestic alternative to SAP software in 2027. 登入存取你的投資組合
Miami Herald
43 minutes ago
- Miami Herald
Sugary drinks — from soda to juice — may increase diabetes risk more than food
It's no secret that consuming large amounts of sugar can contribute to chronic health problems. From obesity to cavities, doctors and health experts have warned against high sugar intake for decades. Now, however, a new study has found that the way the sugar is delivered — whether through a drink or eaten — may make a difference in the risk of type 2 diabetes. Researchers from Brigham Young University and two German institutions conducted a systematic review of research on type 2 diabetes, a condition that is rising globally, according to a May 27 news release from BYU. This means the research team looked through previous studies that included data on sugar consumption and the development of type 2 diabetes, then identified new relationships in the data. They were looking for a 'dose-response relationship,' meaning an increase in the exposure results in an increase or decrease of an adverse medical outcome. Sugar consumed through drinks like soda, energy drinks and fruit juice were compared to sugar consumed through food in how likely someone who consumed the sugar was to develop type 2 diabetes, according to the release. The results were published May 27 in the peer-reviewed journal Advances in Nutrition. 'This is the first study to draw clear dose-response relationships between different sugar sources and type 2 diabetes risk,' lead author Karen Della Corte said in the release. 'It highlights why drinking your sugar — whether from soda or juice — is more problematic for health than eating it.' The research showed someone drinking an additional 12-oz serving of sugar-sweetened drink per day increased their type 2 diabetes risk by 25%, according to the release. The increase continues for each additional drink, researchers said, and includes things like soft drinks and energy drinks as well as common sports drinks. 'This strong relationship showed that the increased risk began from the very first daily serving with no minimum threshold below which intake appeared to be safe,' according to the release. Fruit juices may seem like a better option, but the research showed an additional 8-oz serving of 100% fruit juice, nectars and juice drinks raised type 2 diabetes risk by 5%, researchers said. When compared to sucrose, or table sugar, and the overall sum of naturally occurring sugars in food, about 20 grams of sugar a day didn't increase the type 2 diabetes risk, instead showing a 'surprising protective association.' 'The above risks are relative and not absolute,' researchers said. 'For example, if the average person's baseline risk of developing type 2 diabetes is about 10%, four sodas a day could raise that to roughly 20%, not 100%.' The difference likely comes down to metabolism, according to the release. Sugar added to drinks is isolated sugar, and can overwhelm and disrupt the function of the liver, increasing fat and insulin resistance, researchers said. Sugars in food are often coupled with the other nutrients found in 'whole fruits, dairy products, or whole grains,' which do not overwhelm the liver. 'These embedded sugars elicit slower blood glucose responses due to accompanying fiber, fats, proteins and other beneficial nutrients,' researchers said. These findings show fruit juice is also an ineffective alternative to whole fruits, as the juice lacks the fiber and natural sugar, according to the release. 'This study underscores the need for even more stringent recommendations for liquid sugars such as those in sugar-sweetened beverages and fruit juice, as they appear to harmfully associate with metabolic health,' Della Corte said. 'Rather than condemning all added sugars, future dietary guidelines might consider the differential effects of sugar based on its source and form.' The research team includes Della Corte, Tyler Bosler, Cole McClure, Anette E. Buyken, James D LeCheminant, Lukas Schwingshackl and Dennis Della Corte.
