MYTE - Earnings call transcript Q4 2021 | MYT Netherlands Parent BV

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Operator

Greetings, and welcome to the Mytheresa Fourth Quarter and Full Year Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's call is being recorded and we have allotted one hour for prepared remarks and Q&A. It is now my pleasure to introduce your host, Martin Beer, Mytheresa's Chief Financial Officer. Thank you, sir. begin. Please

Martin Beer

is and for welcome, full the XXXX. me operator, Investor to fiscal everyone, Kliger. With call Michael Conference fourth today welcome, you, everyone, to Mytheresa's year Thank CEO, our quarter and

annual Before in we remind our expectations Many comments to today including report. discussions risks are Any risks like our forward-looking include uncertainties statements. are make the you and cause subject forward-looking to that could will we actual we materially. begin, differ would previous to about described statements and factors and uncertainties, results

forward-looking We are under no duty to update statements.

we to this reported call. addition, financial on in measures In not will refer IFS accordance with certain

Investor turn financial to You in is press our Relations can the Michael. investor.mytheresa.com. earnings our which website will I call reconciliations find at these over now non-IFRS measures release, on of available

Michael Kliger

side, you, our for very a warm from welcome today. you call Also Thank all thank joining you Martin. and my of to

today year performance We fiscal There will results messages fourth are today. our to you three which that year with also XXXX, quarter full XXXX. leave clear and completed our of want thus I comment on the fiscal

quarter result, extraordinarily fiscal again, position of completing for luxury platform an the the successful digital confirms, delivered, showed consistent sector. excellent Mytheresa. view, an We profitability. and the unique First, year growth This fourth our outstanding in Mytheresa in

long-term partners. model started superior brand performance the affirmation of it neither driven performance not and change both pronounced. change many strong superior a a behavior of strong of on and performance pandemic. was difference proposition made that our the accelerated KPIs. on between business has based nor was based the and end only of evidenced the consumer by the year more customers good, the last the and a view our of is the as value the by of is for our But catalyst Second, pandemic of so We fundamental success Surely, outbreak pandemic good a as for the the Mytheresa

actively used business to we continued growth. very months Third, last the future and in strong consistent the of to couple a have build foundation

comment Let more these for now in three detail today. messages key me on

our compared fiscal fourth and year by guidance the XXXX, above quarter, to the sales XX.X% year is net to QX full growth. XX.X% for our year XXXX. long-term we significantly in grew annual XX% by continued XXXX; over fiscal of XX% This First, fiscal

Mytheresa business curated by be and a that Our as luxury we partnerships a profit continues customer makes on sharp year, margin the success focused while to compared this fiscal XX.X% XXXX. to for platform XX.X% model. In growth year based year our gross profit-making luxury deliver our brand view, is full keeping digital fiscal outstanding for This best to XXXX fiscal focus, strong the exemplified at fact stable able for multi-brand were unique. the

strength Second, fourth in multiyear two-year is of of evidenced quarter growth our fiscal XXXX. by in the net rate year XX.X% sales the

in in growth quarters quarters, QX of in XX.X% of XXXX. of fiscal XX% of XXXX sales of QX four the in Over and year have in corresponding last in the now two-year XX.X% year rate we and over XX.X% QX delivered fiscal net QX

XX% the goods of personal estimated of behavior. that the of pandemic to of advantage will and that be our benefited believe over shopping & our pandemic, so business competitors we of luxury we the Based study impact fundamental changing take luxury superior and we the many consumer While the drivers could online on Bain the by compared are from recent behavior consumer our spend growth by Company the model on XXXX.

in the customers probably in were States, fiscal in or proposition. region us The much demand fiscal by we believe again the post-pandemic that pace existing value trend in accelerated pandemic, it we fourth will world, XXXX. a of net for stores going this consumer of luxury continue in but shift continue. year our the XXXX. came to and the was closed we this out travel our coming Independent we has clear grew where by of year-over-year customers spending highlight clearly quarter new the significantly as net while the for all as more back, So online sales been XXX.X% All will sales lower United at opportunities offer grew belief year superior QX affirms

that significant many establish for a Third, we proof that growth. the quarter have achieved, again, we believe future last foundation strong significant points over

business big customer the us curated best base multi-brand As one and highly to focuses our explained very multi-brand attract luxury a a curated spending, customer wardrobe segment, building with the is in to on without before, provides that offer difficult attuned offer. which

in well customers Collective very payment of service attracted now We cohorts credits. building and to year-over-year LTM the of year have In with wardrobe soon offering To a and in items, of we and in significantly products our customer Vestiaire the fourth year ready-to-wear. immediate for QX our our and resale year in to fueled This privileged customers, our expanded year streamlined by received our over customers. through relationships. of simple exclusive driver and attracting XXXX XXXX. this by with new fiscal brand for fiscal growth. service an XXX,XXX for The access We bags active year-over-year $XXX,XXX. partnership corresponding their XX% customers In provides QX, QX launched exceptional again Brunello new customer as and base the and fiscal was also note, XXXX, unique cohorts customers A QX behavior period Missoni, year and fiscal our continue with to see good grew of styles quarter importantly, form year collections for enhance by XXXX in XX% that exciting Alexander Roger for fourth brands Jacquemus, as Christian and exclusive top is show were many average rates, XXXX. partners top still value McQueen, Mytheresa's over process them year it base multi-brand new of all by executed the a in pre-launches they of better most QX compared such we We in XXXX. more. honored customer Vivier, in further for pre-launches Louboutin quarter, partner and again brand reselling QX outstanding the top of of QX our we in spending trust store Loro key now proposition shoes the Cucinelli, Valentino, acquired we XX% our launched with But outstanding repurchase also our to customers grew fiscal support is fiscal preferential Piana, context, XXXX to from fiscal as

also our featuring up pop our year beauty Estée Lauder We fiscal website brands key ran QX on Companies XXXX. first of in

our not to still Beijing QX events Centre physical collaboration Pompidou. with customers, Paris for top still able high-impact were many had events in the in execute we While we and in in

terms further proposition. Another relationships some major how brand evolution exciting to in which unique is going allow our in innovative the brand us value we will forward, strengthen of development partners collaborate with

and will our integrate desirable so-called to some better retail the Another own be us much we inventory be customers. closely of our of replenishment the will means part today. platform will in-season that brand access appreciated with greatly model, to brand product of partner, This management of highly the compared curated partners. This we by affording operations

the change Our partner the inventory control us Mytheresa until assortment in over while not efficiency remains and will the brand customer. marketing relationships The customer of our ownership the building, will is vis-à-vis capital by it sold today improve. to

book this as operational brand fee therefore, year This model, platform already model will, with fiscal some XXXX our to become partners. will nails going under forward. a We key start in

margin in it all all little activities. correlates share we the the the no that business of very confident by Promoter achieving fourth a health top our surprise health achievements on price and also satisfaction high year extremely with Martin continue XXXX. promotional in over and Net hand Mytheresa performance. full above, with financial I internally discuss as the Score again on strong now, fiscal highly of maintained proud quarter gross The With in demonstrated focus We a quarter And consistency XXXX. year continuity of results come of well-being to operations with in very high XXXX to across basis employees in stable the fourth and year we detail. results as our the and on all guidance the should was in customer to XX.X% fiscal are priority. and Finally, our This the fiscal business operations our QX of of demonstrated of dependency measured

Martin Beer

Unless we'll and refer results Michael. quarter the for previously some year key now stated, fourth I XXXX on provide euro. fiscal will Thank financial and all the otherwise additional numbers the topics mentioned. you, of for fiscal detail review to

our pleased are scale fourth to new on business our in With with performance of growth we quarter the we our profits. strong Michael customer As due the highlighted, during we above significantly and cohort where performance. proven sales compromise growth clearly existing quarter expectations, robust quality net delivered customer strong model, very could fourth without the any

$XX.X quarter, increased fourth sales year-over-year or by the $XXX.X million million. net XX.X% During to

XXX,XXX. active see the customer with months grew engagement last to and us shop continue strong XX who in to our XX% We as retention customers by

increased by by last total our our €X,XXX,XXX. million growth or €XX compared the the XX.X% XX Now increased XX.X% orders strong to period, order shipped prior to sales months total and of in driven by Cost year shipped. in

XXX our year profit of was of million fourth XX.X% level year of percent year-over-year. $XX.X period higher XX.X% a net prior price decreased increase a or XX.X%, by to slightly of profit of sell-through. €XX.X XX.X% the of in full driven margin Gross points sales sales, cost ago. basis by million the Gross at compared quarter to of an XX.X% compared continued improved As

last heavily operating of top gross full Mytheresa income in gross customer by adjusted was effects XX.X%, XXXX. achieve was COVID. our QX a positioning QX to our million, to fiscal in million, year over For unique compromising the market of effects, The EBITDA to year one-time without our related temporary of in and XX.X% fiscal an profit increase $XX.X adjusted line fiscal achieved fiscal sustained high growth year XXXX, compared million. at gross fiscal was drove year high-end profit full In compared the years margin The year XXX one-time for of XX.X% and adjusted XXXX, the ability at a XXXX. some EBITDA QX of fiscal the of underlines XXXX XX.X% last XXXX. the our the year affected mostly $X.X the at to margin profit to full stability These year stable in quality. XXXX special margin the strong fiscal four a

EBITDA we cut adjusted May These costs the would effects, June temporary of be COVID at what effects these was what Therefore, to costs, early time X.X% consider in we're marketing relate margin was host not able performance the to we last did lower fiscal the and about of quarters QX of points XXX Due last than had the April, year, SG&A. in and XXXX. at year events. you If in stages year. our marketing basis ratio marketing cost scheduled not of seen and any to and preceding expected that

SG&A. to In had cost IFRS that These other amounted in lower effects SG&A, basis in we points XXX COVID-driven addition, in quarter accounting effects. and

margin X.X%. top the line EBITDA reported XXXX, positioning the an year the So quarter of we X.X%. that year's upper reported effects. are XXX basis X% and We are adjusted in line EBITDA growth this XXX last increasing total, XXXX. temporary points In unique year basis market. margin in and we our one-time margin therefore the margin end of achieved in for adjusted. And points be are very quarter, profitability X% with by of In margin, special and pleased full the full not basis EBITDA of X.X% included the fiscal and operating QX achieved These margin one-time EBITDA have these adjusted and adjusted the one-time X.X% with at had were adjusted the pull-forward fiscal we EBITDA strong The other considered. costs to year underlines been our cannot the XXX X% The continuous IFRS pattern of points are margin. effect effects for guided but adjusted adjusted X% fiscal in nature, would margin of of accounting technically that resulting in

And EBITDA already for levels. adjusted XX.X%. the sustaining We guidance for very the full fiscal strong achieved €XX.X will the of €XX.X XXXX the Mytheresa 'XX, more on of on are to and XXXX, representing in Coming fiscal talk end confident the significant fiscal profitability thus overall later, growth coming year 'XX, its year back close year full of which the a million million, QX. to an I is to compared fiscal

EBITDA from also the increase adjusted this X% full increased previous adjusted achieved to Mytheresa the margin For year, year. fiscal on the X.X% in fiscal operating strong in profitability income.

reported the year representing XX.X%. adjusted compared million to million XXXX Mytheresa XXXX, and an fiscal growth For in operating of full of significant a the income thus fiscal €XX.X €XX.X

going decreased our reinvesting in For increasing Then online performance in was X.X% in attract core lower of increase continued XXXX down fiscal Despite previous customer X.X% very and a XX.X% P&L XX.X% in active full customers stable fiscal with the to strong from to brand our full year. cost fiscal achieved stability, with gross cost in we new COVID the the about is marketing The of from Due in fiscal increased year, income margin XXXX the situation, is of efforts strategy, Mytheresa by a customers for lot decline cohorts, marketing and positioning in the that sources cost XX% compared year and the XXXX. and customer a the fiscal to which to full strong fiscal a our stability year, XXXX. in leverage. increase shipping previous lines the the fiscal for look the increase at year XX.X% see good we four indicator compared cost. cost The performance operating able the the a we If ratio stated in line execute level ratio and in at the talked profitability, years. marketing. we we at online the building P&L, the efficiencies this performance going further It through achieved efficiencies adjusted to past in a not could profit to our margin, XX.X% market. We successful PR to for is CAC already targeted payment key events. see

ratio to we stable. cost intend forward, Going keep marketing total the

costs, and the administrative in public to XXXX, XX.X% improvement compared full ratio a costs. fiscal the of year XXXX. The company For we in income period. million as €X.X operating performance adjusted adjusted is and fiscal Adjusted the net on year ramp-up selling, QX was fiscal and in XX.X% the EBITDA of in income visible on was level. achieved operating XXXX Despite to net leverage general million adjusted personal and year €X.X at income cost also prior adjusted compared cost

with fiscal XXXX, year in all have also past net from Mytheresa's adjusted growth in X.X% income XXXX fiscal fiscal full years, the business adjusted way million net For of increased have XX% the the in to we achieved strong attractiveness income been the €XX.X The of the XXXX unique XXXX. structural at level model. fiscal profitable and margin In stable always profitability. €XX.X achieved shows

the non-IFRS was for income and €XX.X and in performance. reflects IPO financially measures. XXXX. Except transaction adjusted clear share-based there fully operating which paid and fiscal these compensation the costs, As net operating loans, in shareholder loans, the parts preparation adjusted Including QX are transparent performance. and our XXXX and always, clearly finance one-term are strong expenses the fully shareholder items reported expenses we million any XXXX, for P&L with fiscal fiscal adjusted one-time EBITDA, loss In the back no and EBITDA, and IPO these on adjustments adjusted our straightforward. additional and All net income our In of effects our full proceeds. year the simple we were at of line the our adjustments adjustments, P&L. fiscal from other these operating core year the non-indicative XXXX, million €X of IPO are

cash the to Moving flow statement.

with under position, cash During ended June unused liabilities XX, anticipation growth a solid in XX profitability. operating a sales the size, revolving equity our of of strong has We no €XX.X of cash with of in line as its Mytheresa inventories is strong quarter and strong the equivalents XXXX, €XX.X XX% months million used by position. increase continued inventories and million for €XX primarily ended increase exceptional The activities June in million sales. in in million and an driven credit ratio cash XX, is and total availability in a €XX.X to financial XXXX. cash equivalents the and of and banks, cash facilities operating

quality Mytheresa, XXXX Turning to ending underline top now COVID our influx fiscal past last fundamental in an the data months. for for year to exceptional The has accelerated only cohort shift of the the XXXX. and growth shopping. year XX our expectations increasing All luxury and online year current high prevalent from off-line fiscal customer the line customer June has strong been the profitability.

Our of to is partnership or top evolution already major selected curated fiscal XXXX. of brands. our base which achieved line exciting is on for is this to And key strong Score fiscal clear loyalty this of customers annual rates fiscal continued achieved fiscal 'XX KPI as on high with of highest and of growth of target existing total our strong full-price high share, repurchase for ongoing of therefore, profit this an expectations year model short at from highlights gave customers of bottom for continuation stable The growth of XXXX. a The gross before, driver our Michael customers are are strong Mytheresa's and and signal visible the built year expected underlying in for active margin degree our We of performance. trend. of and an level top XXXX approach already Mytheresa's also is our customer XX% expected the XX% strong sell-through strong Promoter Net platform stated line active of support. new growth. customer rate long-term CPM, base and customer

we this the XXXX, even with in-season see platform fiscal unique scale ramp-up provide The content, replenishment, availability to merchandise CPM more of much model. allows superior of marketing engaging to continues do respect curation, us For best, it brands and will does adaptive rate. what Mytheresa the customer of the while

to the gradually operate share model. will CPM also increase business We expect but time, over a wholesale Mytheresa continue to

our long-term, revenues to be total CPM higher revenues. of here platform XX% in be model to XX% we share the to fully our able and platform are fiscal core than total creative the also In that not expect with higher of on XXXX content right provides share value capital for now We we it platform not as expect through offer in than our line superior our curation, in focus better right The is brands. the model the providing service, customer us efficiency. but business

inventory sold until remains our Mytheresa to the is partner customer, CPM the the under of fee a we As it ownership in platform as book brand sales. net the the

value, will customers is as shows focus of to gross our We operating of fully captures on transact therefore shift amount merchandise our of full top an platform, our the reporting merchandise with in our depth customer our and our strategy as relationships. measure, total line line the GMV, it that that which the

continue EBITDA. course, GMV, an our report KPIs adjusted are to business reporting gross in of also important profit the will, and We figure, active net customers, most but sales as IFRS model

XXXX XX% €XXX at is the to XXX,XXX $XXX growth customers, of we half and to range million; in guidance at fiscal profit million net cohort Our for strong full at million €XXX new to to upper year customer these $XXX million, representing XX%, of performance, continued XXX XX% XXX,XXX XX%. XX% million growth financial base representing to ranges. to enlarging therefore gross active sales of our XXXX to XX% the customer expect a come year growth, of to million to the GMV customer the the €XXX existing out Due to active

EBITDA to expect in X% 'XX we our half profitability year long-term will and year in of X%. range our zero This targeted fiscal originally addition, also already translate margin rise the 'XX. in reaching In upper adjusted fiscal levels of might

XXXX and and over turn in ending core expectations of fiscal clear performance to June the I achieve we call his the year remarks. market trading, Michael basis concluding current the confident for to On very back strong now trends, XXXX. our will sustained are customer for these

Martin Beer

Martin. you, Thank

progress are deliveries our quarter the We and i.e., short-term year earnings perfectly in opportunities were We see fourth above the strong XXXX advantage of the to delighted shifts Both with the and around digital strong world, the expectations. positioned the brand market, results. full results by the partners. better take to increasing fiscal the ourselves vaccination

XXXX. have at to per we We provided we towards We to that what for XX strong importantly, continue. guidance in but strong will EBITDA continue the a up saw XX% margin. long-term continue multi-brand than a positioned will with see take a of ahead the to believe months, it operator like stable trend open of that, year thus very the with to Even advantage to opportunities pace positive we the the us more last probably of slower And fiscal to annum questions. perfectly ask market. ourselves see Therefore, growth digital I'd the XX% platforms continue your for full

Operator

you. Morgan first with Instructions] Kimberly Thank from question [Operator Greenberger comes Stanley. Your

Kimberly Greenberger

Thank it's on U.S. up the geography And This quarter or growth more in sort Great. much. within explode. the you in continue Okay. a see recent pretty year. to revenue of see last last you. just some first quarter, focused rather the for year, to large XXX% say I is fourth let's the great here so

some you just can resources underpinnings that having you to? attribute about U.S. what you're in just the or do matter is U.S. seeing here geography? factors in performance So this local a talk growth of of that the the it growth other the the supporting And

Michael Kliger

Kimberly. you, Thank

mean I opened in numbers, our America. North U.S. always, President York. the team these have you office what Kaminetsky, an have for But exciting in is already when factor important place alluded We hired are you there a multiple put Heather New we one We As for factors. to very as

of months. team a local the have of We shoppers personal for couple last

on working actively market. So, we the are

even driving the very engaged It's are hurdles in is when the growth And satisfaction. we one absolutely only because not trust of is We to the two influences started services also, have into of in we Hamptons, other see as us. actually have course, further very bullish for this aware awareness, U.S. the turned We high for customer people has clearly market. brand U.S., our consumer already big that had factors that a events. use two brand that events do

We also brands from hear it business very the that hard. is

the in turnaround So strengths demonstrated of pandemic. in U.S. out the all consumer factor world, in And there is in traditional again as that a to to shop and very And has this in also ongoing is the we combined currently leads coming luxury U.S. their three extraordinary finally, shift consumers that the of important the this growth luxury see the online. everywhere U.S.

Kimberly Greenberger

much the And might million quarter. largest strikes for like our That's excellent. it's to versus up follow factors. looking like so higher in we than me for. you delta It on a factor fourth looks of in stock-based were be looks one very coming the estimate. Thank wanted the that I It those €XX SG&A compensation about just as that. It

out ago, So I'm XXXX can the guidance, wondering at looking to net let's and little compounded dig to annual if But I'm And XX% I XX%. say, the compared say. a it looks more. years two just if on sales into This then XX% looking revenue basis, at growth, a -- two-year XX% it like look that bit to looks to you let's growth.

be a introducing new sales then base revenue. the you're of the of effect converting fiscal somewhat into just this -- extraordinary got secondarily, some high partnership And in model, GMV. growth growth net the 'XX So which given you've could

of about year Thank targets how upcoming you maybe if talk the wondering so you factors us revenue can right you well. as just about I'm you So and the to all for considered thought how much. the

Michael Kliger

Maybe yes. -- Martin SG&A the can take

Martin Beer

to absolute I It's SG&A, to adjusted out, in Exactly. I in not is previous I quarter, release mean, compared only clearly in this SG&A. And share-based SG&A, press quarter, speaking had some in compensation speaking highlighted quarter numbers, to am the SG&A, Yes. that we terms, as this one-time clearly, and year in the pointed one-time transparent. our but also effects. effects. the the And in obviously, adjusted the adjusted. you the also as am presentation also

this line costs. change and you revenues adjusted the my of basically That's mainly So wanted about fiscal to is platform effect effects of adjusted in this due costs, share We base. if one-time take of our points points. -- the we QX changed had they're And relate IT base, ERP HR both them two earlier XXX projects to major both next an to second IT XXX and is of IFRS successfully are that major with -- SG&A finalization finish they projects, are past basis out, already year. that that And the implemented report. to that in this mostly referred on also SG&A we revenue international and higher the It model our acceleration I is quarter. accounting change the And We effect shifting recognition. increasing that so platform basis of in revenues. an ERP to HR

So this is the on SG&A side.

Michael Kliger

or means explained, And higher integrated we in replenishment. capital from will a This and correctly of ongoing of 'XX the also as model XXXX Martin benefit in revenue course, I the side, to. our model, of factor absolutely extend means, new in new also from start chain the supply base think, to overall Benefit benefit business. share platform much curated on course, fiscal velour And of the is, with referred us efficiency. the allowing year this being

brands gradually platform run that reporting operations gross retail on a as better and drives fiscal curate we to new partners for of this understanding merchandise have execute 'XX will mean not adaptive I the this we this. expand big year And platform We part really overall higher of value. additional are looking guiding integrate model 'XX of fiscal XX%. we for to will share into for a that, year on are have that course, and as share, an will what business than of

business the translated on really our and done is how by because site merchandise of that that that customers course, is amount value much then the that is part tells gross is how a much value total transacted platform fee. of customers our depending, the As by you into

net also referred that there the sold to, platform the longer business, no hand, hand, growth on is but the value extraordinary the the the good so merchandise other And on the the where net -- one the platform of base sales business 'XX booked. that fee but sales is of you on an part there's effect

Michael Binetti

the the much sense. Thank perfect nice here business. on in very you Makes momentum so congratulations and

Operator

And your with next question comes Matthew JPMorgan. Boss from

open. is line Your

Matthew Boss

been to acquisition just Maybe from your you spending that to you're speak in trends you're that guidance near term, from would quarter-to-date acceleration relative What Could seeing on performance maybe your new And to first XX% seeing customers thanks. a seeing spending the year, maybe customers? top cohorts? are maybe then any the to think, speak that just that that helpful. you're current for color revenue could be have XX% you across recently I Great, client? just customer the

Michael Kliger

Yes, sure.

cohort on customer new to acquisition, continue a that acquire customers. So acquisition, see of lot we we

new is we very QX, acquisition in of to also continue positive, see And quality new again, over customer XXX,XXX customers. the So these side customers. good

number events. QX was The spend increase tied vengeance. in a reported XX%. new by QX opportunity the of are top So a I even slightly course, the up going opportunity the customers the with is, customer we to to of coming go in bigger stable, customers out, to is new costs that in mean of red that higher. our average 'XX QX, occasions if to spend not go and back customers XX% the of carpet And to versus story

as acquisition and and story our to the to opportunity are many number, times, opening is to and our have tied and drives best customer, are up buy high-spending because really customers is spending wardrobe a the is So dress explained specific we growth and strong our very that we that, building, needs necessarily business. up driven quality the occasion-driven, their now They but really more that more by the and customer believe, not product. occasions new underpinning positive their

merchandise to metric And I you again, customers we additionally our mean, it's say that can feel we We very how the tells current the of on that in in platform, fully are key to comfortable. have supports the much because is Mytheresa. important that trading, model the terms understand wholesale now current what spend guidance. develops how value that train very In clearly gross

just you remains down, it go guidance and X%. for profitability the is the how book the this we way As to X%

based of that. expect half We that on current upper the we in are the trading

the much really metrics we is believe at look key So, is to understand transacted platform. business the how of the that on financial to merchandise health the

of even reports. is -- trading makes half upper The us X% -- GMV even be to the half on on again that the and course, XX% current to GMV, X% that the So to on platform confident upper on of range. of the and range the very EBITDA there XX%, what the range higher EBITDA

Matthew Boss

been drivers to you've hear. And that the Could the a of given gross drivers margin just line story acquisition follow-up your on margin key real we a the customer just underlying next just consistency the as of showing I the think and That's year? about outlook been great gross has to gross margin. year? this then maybe past think for just speak you

Michael Kliger

think you're absolutely I right.

we over I months. this XX think last share to key decreased understand and factor that fact why the this is growth our on promotional the can actually is business The customers not acquire promotions. based in profitability. And achieve continue a to business has

internally, than continuously on also a we in key. been have brand keen are equity lucky brands that end distribution protection to seen for where system have high-end environment very years are also We is last The before. a seen focusing brands. has the we've luxury the luxury the months in what less promotion high But XX business driven

change new pandemic customer on shock acquisition thus come targeted what industry promotions realize by to back past will then attracted dramatic luxury, but we excellent gross dramatic also are the because back are based driving promotional the intensity we in key it only marketing promotions that acquisition by the by it's highly intelligence we spirit. the customers are backing of used downward I the on our and by think algorithms, using from brand and a know of not So and customer artificial important And equity is protection. is is marketing, protection margin has what is our

Operator

Chen from comes Oliver Cowen. question next Your with

line open. Your is

Oliver Chen

that how given in of main financial And any over as do are it the have be thoughts Michael, principles terms great How as well how And are rate? take you. brands what on how distribute will time on of or vendors? high-margin arrangements with it's know. just the the of a platform if would mix That the the implement you'll model, contribution well? you does Thank time? arrangements we'll what that EBIT this over And what's trending curated some in? -- geographically in participate see the you this the of to timing terms

Michael Kliger

Sure.

evolution. the a model So gradual curated is platform

geography, So 'XX is by fiscal It's individual brands. with not year start brands. we it will major in by some

work create sell with in until Mytheresa longer The in brand is will possession will will that customer, it own sit that's if no the the the of The inventory. that ownership the So but brand we to continue of inventory so immediately remain a the our inventory on arrangement warehouse. the will platform we global. we we to

ship from warehouse. will We our

We And the both on the marketing. chain, the supply is to do advantage will close marketing. integration for collaboration the real of continue closer sides

terms with will platform. the term medium the demand integrated may the margin, wholesale model right have are of to season and is part in of only toll to terms also brand overall why demand, the pool as capabilities manage the during side are course, We right chain. the not we this of also to that That's meets inventory tells the IT specific able model stated. in of clearly supply on brand. That certain the adapt you This product make of -- currently for brands, the of as this ability wholesale the brands. we approach some and XX% expect right this more groups, as some And brands, revenue for right that sorry, that an have brands. model and other on be for total We even we bigger our some model we brand the evolution of bigger expect the but

on line, So accretive product is bottom bottom money desirable evolution is it there's on a also creates work, don't the access are and terms this. accretive -- because impact it we're highly because not top of spending It efficiencies is we gradual line and only of getting but things much to allows to this efficiency step-by-step it on because work replenishment. that out a based the in avoid line is to this closer us and access in be gained because

Oliver Chen

actually inventory appropriate platform curated a versus framework what's a the and fashion. most deciding Okay, of And capital-light tap the also for will array and into you in your model the CPM you Michael. for assortment buying enable what's likely brands whole-wide to to add

can what's ways your to does this So opportunity for Evolution? that And give compete a you're in different what big change step you alter as or in vision unleash doing?

Michael Kliger

also are now on model to additional the We it because, and this truly to excited speak Mytheresa allows have offer different to present Mytheresa brands, different be customer. how to solutions to us in indeed,

the I And these that and model So different model criteria will but our interest. with perfectly model, the that not other our us and brands and feel different brands that, that one only always capabilities for upside to things brands. traditional allows great there's even we is develop work see models them some jointly say brands wholesale a there attuned actually and better with is discussed are to that

an more as with So, delivered model brands. we is mutual additional always it opportunities firmly for us up interest, opens have to work but we

Oliver Chen

well the with APIs integration the are speaking, speed with critical by capabilities this is are and DCs. as your work? and about of the as thinking infrastructure-wise key making seamless relationship proprietary customer each as the technically brands What infrastructure pretty and the also

Michael Kliger

'XX. is starting clear, in But we are based This very capabilities. be on IT to fiscal year

are place. capabilities the in already So

the brands 'XX. then spring/summer with so more fall/winter even already in start will with We and first

requires this is -- in we them have capabilities additional place. So it but

Oliver Chen

Okay. to has And a and and you the enough how given in industry versus line Martin, inventories relative freight been shipping leave top And finally, costs topic. What did big are the have your thoughts did did payments availability And costs quarter, marketing those expectations? some your and table on on inventory constraints. sales? you align

Martin Beer

full a 'XX mean So, winter on I for are let me fall/winter. 'XX deliveries take is back. to well swing fall/winter very compared we delivered

good of seen product. We availability have

there there chain course, recovered. best caught would Italy have production Europe. and in are sellers the you year, on more had But fully and Of March, since Italy April down and And luxury up. seller are had as and was you our July supply as fully really base industry shut wish actually in always remember, of. has impact overall, on back last that May really focused is supplier you And to in factories August have but the

pre-pandemic impact don't would very anymore supply chain negative on any it we so, levels. describe And and availability, back it see product as good. I the almost to

Martin Beer

We Yes. next margin, the X%. Oliver, to end year and upper observation. I the to maybe the of P&L, X% the mean, And with on EBITDA yes, X% the year great guide finished we fiscal

the if cost stability stability look the individual increases. that also nothing can gross growth, technical forward. manage think strong were looking cost there. we look great the the we at There's more offset that the So And to we shipping about don't expect we payment ratio talked cost and if at in lines, we the profit you despite margin. And able stability we

do awareness fiscal. events we side activities of brand why couldn't the the expect we I want continuation that's we leverage. as And So continuation cost marketing stability we into it But cost reinvest we those the SG&A, of ratio expect a stable marketing there. on expect And PR side, marketing a and is, be so marketing to to gains on cost trend efficiency online ratios. that much this overall of the said, performance improving and

Operator

Michael with from comes question next Your Credit Suisse. Binetti

open. is line Your

Michael Binetti

Thanks today. guy. the all for for questions taking and details Hey, thanks our

to So a about The margin. to if gross higher we to with like guided with seems gross of be layer you CPM, sales as looks look through it the margin guidance, €XX just XX €XX.

OpEx, with the trying You X% XXXX margin XX% seems of XX% guided range, XX% XXXX. last year. the -- to to did to X% math, understand in sales to or in versus XX% rough I'm to it imply about EBITDA

to speak you there could the we associated like little that with little coming it Maybe how understand CPM. line bit the bit, a So costs P&L. influences OpEx seems a some it so into is

Martin Beer

that the look call, we don't I -- due I what P&L, CPM. in in the this about the the see clear of at line earnings to and I any I If talked it's in mean, cost increase CPM effect think items

what And in all have CPM items we our seen successful in stable. but because is GMV sales, net other overall But the growth the outlined are brands the as brands sales, has past as net this have be or very net line cost just stability the to end-to-end of shift not there. How from the marketing customer will strongly. shift a fee It those a into Michael inventory. We increase does GMV gross CPM and effect, the grow a one-time Michael with slower line an booking wholesale GMV ownership effect we merchandise. obviously, from the said, slower curate, treat of we margin relation as the increase model. in years such as to service. for the content, from select, change the do CPR the will platform we do the the and into So overall of we The sales, the

Michael Binetti

you I'm thank curious. for that. So also

understand, the you time ERP is You for an the are goes know There's handling as the that shipping program warehouse bottom you didn't the are X% a that that of new we XX. accretive pulled couple bit is I to means? to trying headwinds what brand's X% range with you there then Slide I'm XXXX. two established the maybe into some with customers. If a EBITDA, the to of maybe the in guess inventory control on I'm from But top outline of associated should will guys new returns? takes PM CPM to there previously, what the had the to line. the but associated some service, which but you described that sounds we said to from consider there? like consider this a presentation, in Is for shipping you brief that customer you we pointed that just of EBITDA to accretive, costs had And comment costs tailwinds. half XXXX it Are said you PowerPoint that assuming and EBITDA you I costs spent guys

Michael Kliger

the The Yes, but our sorry, in is before. is explained answer our is inventory wells. well not may wells well explained. the have was with in not brand, ownership that the inventory it Financial been

Martin Beer

EBITDA is see in probably And achieved mean, grew -- EBITDA in But Exactly. among to forward cost any have We see And 'XX just effect there I adjusted QX, a this adjusted maybe to we for margin, fiscal QX. XX%. mind, year the was bear this one-time 'XX, by we pursue X% our and in fiscal in pressure highest year don't the fiscal going cost any industry. year we we 'XX. in couldn't which handle

CPM. no going especially despite it pressure, from effect not this and in forward, described there's QX, I driven So cost

Operator

of the And Mendez your from last de America. of Bank of Geoffroy line question comes

open. is line Your

Geoffroy de Mendez

thank for question. Yes, much very taking you my

Just to the CPM. come back on

main XX% And are to grow close XX%. of long you're look, sales the share. slower than increase GMVs So CPM to term, CPM your says towards go correctly, why your because the to to you're understand share then going the going to something going in reason I it if

how net understand expect share, sales, years? net market growth So slower we I growth Because your is GMV next, your are than to important margins two your I should your the be sales GMV don't know, to understand in calculated. three the but to is

than So to growing your used have than the the are slower guidance you at and net your if IPO. GMV slower sales

EBITDA Your be under euro in potentially pressure. terms will

And just how the been on you you has opportunities have fashion? Thank question, any that can then with on we give Lauder, comments So time. very second VC the size Any of impact launch to the average on cross-selling comments if front. with and on clarify basket want Estée much.

Martin Beer

that brand. some and the the major CPM on the net first of sales. we for the really talked advantages question, the of Maybe brands, right strength Yes. to CPM Thanks. one-time from shifting some of wholesale the the effect all right brands so model, having embrace GM with showing about, And model the we those clearly has this

this run. and also XX% range. that that as outlined year of we expect XX% the So, rightfully that have to that period net also in presentation, coming sale from some said, this grow, months, to next long clearly the and will And year on you base, we some in

one-time or profit more saw XX%. on mean, less sales. on you guidance growth to of I And it's So profitability, the gross effect clear XX% a net on

continue and and XX%. So, And able to accretive. you aware strong of we see to the range fully we the that want show we strong and profitabilit, in is keep, adjusted that to the growth very We to we that upper are the EBITDA more strong to guide on that will this having growth platform X% and X% half grew again, profitability strong of top-line, to in the CPM fully despite be attracting GMV. guide customers

Michael Kliger

feature let profitability and I growth add. is combination and continues mean, digital and mean, unique Yes, to a me of sector. of I this Mytheresa be platform luxury

additional well, But in current Are to economics. the fiscal want is we also that attracting additional or create of we these beauty we with do and to to requirements the year looking new of operational pop-ups pop-ups the of ourselves So, don't And and on exactly continue of beauty, as at next terms you our same for understand, customers? an the to to 'XX understand better really into questions. and customers terms bottom-line, this in new profitability. because because brand and in have what we customer will that operations we we to only beauty appetite on they positioned the we the right but there's exactly with well. create will or advertise understanding going we're can won't as see a any are we by beauty so add pop-up do do you the our it major ones And of face these continue basket us. because still products brands categories beauty, this in that it, or absolutely of convinced the until not great On under same type basket, see we're want we growth add the that, is do pressure exactly outlined are these ourselves well

Geoffroy de Mendez

very thank Okay, you much.

the about? I to you on quick Just rate something someone business? give want the but CPM if was question, Or of part follow-up, it talk take if asked willing don't I one think already there I don't the the you for an -- answer. may, know is Are to

Michael Kliger

commercial individual we commercial is have IPO. message EBITDA are arrangements. our these we most about No, as arrangements. important continue guidance don't We since The will talk

change in that. So there's no

Operator

All you today's concludes call. right, Thank conference participating. this for

You may now disconnect.

MYT Netherlands Parent BV (MYTE) 14 Sep 212021 Q4 Earnings call transcript