MYTE - Earnings call transcript Q4 2022 | MYT Netherlands Parent B.V.

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Operator

Greetings and welcome to Mytheresa Fourth Quarter and Full Fiscal 2022 Earnings Conference Call. [Operator Instructions] Today’s call is being recorded and we have allocated 1 hour for prepared remarks and the Q&A. It is now my pleasure to introduce your host, Martin Beer, Mytheresa’s Chief Financial Officer. Thank you, sir. Please begin.

Martin Beer

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

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

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

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

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

Michael Kliger

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

quarter our fiscal will year and performance We of the results comment and full today fourth on XXXX.

with are our We results. pleased very

high-end In shown the recovered will many long time spent But dedicated mentioned much the sentiments Our unique on our fourth this In quarter rather customers us this of in again has hit particularly quarter with line us, the May, in believe expected, vacationing, discretionary excellent sets world online our geopolitical and excellent some growth shows building spending outbreak seen show platforms accelerated a proves luxury its following focus of and on from which We in be last their the have that positioning consumer. on return. business slower of significant earnings Ukraine. company. and we very actually high the Mytheresa digital on other to in shopping and in weeks, in to and economic strength We and available overdue call business the weeks. after money our quickly third times. has of negative market profitability. challenging sentiment top very the we recent customer resilience apart in continued model war Europe, the true as and

there geopolitical COVID energy ongoing slowdown, at inflation of new or the economic concerns are Of return tensions. course, prices, large about and

digital today and believe we Nevertheless, the on have our on in their strength protects and you to in health impact high-end ways business. I the challenges uncertainties. will business with luxury from very messages our key potential customer monitor However, view want us allowing three agile these developments any we our of leave clear many and you to business. a model

growth accelerated strength First, the fourth the for year the be full seen in Mytheresa. year shows fiscal This and strong execution. excellence our demonstrating XXXX our business in outstanding for the quarter of fiscal can XXXX in in our the and KPIs results consistency

of amount relationships, quarter turn. our and and to collaborations luxury positioning long-lasting can’t drive unique in in build Second, excite quality buy underline ability customers the and money experiences our loyalty brand the profitable which fourth and

XX% geographic to for trajectory environment. confidence our us despite expectations our a challenges and potential annually our the XX% medium-term profitability business in shopping Third, to in in shift as future. sector-leading that consumers and untapped the quarter drive motion have fourth we online will actions growth The well many luxury in growth category reiterate of for growth of the business put to gives short-term as for

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

quarter clear other This period. from clearly apart quarter, same is merchandise fiscal grew a year us by in the our acceleration QX XXXX. the QX sets platforms value, XX.X% we growth fourth growth rate. GMV, in in the acceleration many versus to compared The digital First, plus in of gross fourth the

fiscal full growth full XX.X% our year, year the reached plus to compared fiscal XXXX. GMV For

with The growth on full one the XX.X% the quarter. strong fiscal I key in States in fiscal GMV in Our the of continued extraordinary fourth XXXX in our year accounted plus United customer States year growth States United the is total year number to our in for X-year XXXX. presentation XXXX. XXXX quarter. of business rate fiscal QX over compared fiscal details in top in our is drove of GMV XX.X% XX.X% for evidenced year mentioned high in above-average this of The compared year strong before. Please full We events United in by the year brand States, with momentum see of growth full on and showed our fiscal which to XXXX. XX.X% XXXX fiscal growth our plus investor unparalleled again growth growth an more an United markets fourth events KPIs of

example, of again quarter fourth For a an outstanding as with internally of year reached level fiscal XX.X% satisfaction measured our score promoter net in the customer XXXX.

full results to driven average on increases X.X% our Martin fiscal year the with and to strong very whereas X.X% modestly fiscal fiscal growth XXXX, demonstrate KPIs year bay. line which percentage our healthy year X.X fiscal And the selling. fiscal compared struggled order increased in by a XXXX at bottom full only costs customer other Our in we fiscal a focus about XXXX. execution. year full XXXX increased business cost was into all quarter few value profit these keep compared for XXXX, in fourth and least our acquisition higher many points XXXX talk year finally, price this excellent margin, to translated gross minutes by All excellence how platforms for not plus digital will the the our achieved year by

Louboutin the of from Examples fourth impactful our base record a the unparalleled as number created evidence able brand quarter that available capsule mono-brand easily Resort Gabbana in from of collaboration we pre-launch relationships the our to were have Second, Piana the on collaborations, Dolce Loro to reached multi-brand exclusive can’t exclusive quarter customers Moreover, luxury we the Christian to exclusive on saw luxury We brands. an launch XX-piece of Mytheresa. launch major again with that the experiences brand true digital and cannot an on collection high-value top which by campaigns a buy Mytheresa Mytheresa, were offer visibility and unique capsule fourth only business. to include collection customer money the content be gives & from produce able offerings. collection of

designer. the Aquazzura Capri at with Sorrento For of an together as and To the with we XX-year partner exclusive anniversary X-day event capsule the And Grotta example, the celebrate event another with a the a exclusive designer. collection, in a the Coast of we together example, No its brand together to X-day launch X-day with La exclusive global launch the Azzurra being the we loyalty. of celebrate hosted launch collection can see for brand, fiscal to collaborations amazing XXXX. event customers hosted of Amalfi the year on the Escape other and in drive Please offer investor hosted the Tropez. San platform quarter even fourth more their our presentation experiences and with such that Resort Valentino, our collection, excite top Pucci, details the in experiences best on customers

of in compared onwards negative diminished. large year repurchase acquired spend X.X% fourth year by to revenue in improving newly compared The focus clearly of first plus QX of fiscal acquired top for grew the per fiscal seen year QX quarter to customers The the XXXX XXXX of two of XXXX average business the of particular acquired in cohorts customer in fourth from have year fiscal customer QX the as in the for are year cohorts Ukraine impact fiscal as they first retention XXX% quarter cohorts. our give in XXXX. rates We our war customer customer almost

organize to fiscal shoppers to intensify fiscal year serve us. Our clear globally. This QX by personal our ultimately around styling customer XXXX. top customer XX.X% the continually have customers, on of for grown in top to reason customer year compared events XXXX To world. our plus partnership luxury focus engage of base The the fourth top quarter brands is the multiple intimate with allowed we engagement high-end grew key us team again the of and

saw had allows quarter model, transitioned brands to significant In to milestones the future. platform Third, allow curated our key will for growth that in successfully fourth the the X several we quarter, our business drive us fourth better inventory for our model, we inventory as customers under control the the This which do and brand, to model while wholesale them. serve allows us the management curate and ownership CPM. for remains with

of launch collection Vitra, June, Life We lifestyle the Mytheresa. the dramatically fiscal well square new its the meter glassware furniture, luxury of lifestyle offer the quartz our with to able partner our have customer launched solidifies such Now combines financial up category The as us. on significant CPM, it a and improve as with will first shopping direct exclusive on wear, for service, with and high-end we Gabbana unique category, online. in had wallet opportunities impact its as business high-end new Genovi, contrary, and DHL. offering our such accessories of brand and as the of on-time provide at across of wear as the luxury building growth home some luxury airfreight penetration with see wear hub offers total set for Rimowa main offer plus men’s we With details categories The such customers. curated warehouse brands true more We international Also new investor also collection. launch the growth can pet being and we Missoni, fourth impact location vases we of to May of best luggage curated our building evident as in does a customers. will negative of Gucci XX,XXX future part presentation capacity Airport, for on travel launch XXXX. with Life business, this With not lifestyle only in that tabletops, it & a or marked June completion phase Gucci, Mytheresa. an positioning in other adjacency our exclusive addition launched exclusive called XXXX, thanks run for kids further XX a the significant products. with their profitability. basis to of opened expected but successfully not completion we its it space Pets products. brand CPM Already of central brands to customers and are of the destination Mytheresa June, drive the the the pop on the on were and CPM. Life, for up Casa very collaborations also fashion exciting enough warehouse Alessi our brands Zanat. a luxury In and launched women’s share with year is the for Leipzig Please But to Dolce

localized as of customers. actions full fiscal to This category luxury year shopping. cutoff by GMV Bain will Shanghai expansion in of we destinations. options We expansion announced COVID additional Altagamma our to GMV of share and growth, in be from of it for of States, online decrease comes will by well deliveries, XXXX, regional our existing significantly mainland All shift large-scale top penetration year expansion, times just the In wallet and lockdowns, or environment. With faster benefit strongly return a also team from grew of to as we by support online. the later still no addition the region. XXXX the drive annually Steven and July, plus international flight compared be continued United that luxury recent the on of only the predict fiscal the spend China of the consumers challenges long-term medium-term to of Despite XX% course to business, Steven the despite XXXX. President Asia-Pacific new with goods our as of our Xu. more short-term surprise for believe engagement the all in the China it will related current in growth organization XX% come trajectory XX% customer that customs should processing XX.X% in for above, the personal mentioned

consistency satisfied continue brand as very fiscal to fourth and full clearly best the e-commerce of high-value us of The results results partnerships building in consolidating gives our are now, in year and XXXX. hand to model year Martin ourselves financial winners And our in future. XXXX in believe best wardrobe base confidence I of and discuss luxury customer few that combination the the outstanding the We our space. business strength We fiscal delivering demonstrate quarter see detail. over We full results achieving profitable with to one the performance the the growth. of for fundamental

Martin Beer

additional from consistency year XX.X%. I €XXX.X strong X-year and quarter we and some year financial rate an quarterly was Unless mentioned by we the in able to otherwise our fiscal the euro. Michael. quarters June quarter growth in growth X-year is the a fully With in for factors rate further between were quarter. ended performance. the growth rate million XX, again will the top fourth in report on previously line and XX% prior running XX.X%, our of of quarter at X-year the growth GMV will of our full rates growth a to you, refer XX%. provide at The Thank XX.X% preceding at to numbers all with line XX.X%, the evidenced now June review influencing from XXXX, results details fourth million, of April increase €XXX.X stated,

For of FX year At than constant is growth our fluctuations are for less GMV difference euro. the million, that, GMV the XXXX, was year XX.X%. strong dominated exposure other the have This our been XX.X%. to fiscal currencies small full is the with third revenues to at And of €XXX full fact currency, limited. growth in than that due at a would

key grew the our attracting GMV highly quarter, the growth in grew growth positioning strong new our a unique XX.X% months grow customers to by in growth multi-brand last customers and rate that As existing value as retention relationships. The fourth basis, reminder, strong valuable customer a customer performance. speaks serves. On shopped GMV XX due customers and to continue we a cohort active excellent of X-year €XXX,XXX. active to with XX%. as customer us robust LTM a depth appreciates delivered to is higher who In of engagement the our our X-year active our Customer and shows it robust one drivers customer retention and

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

year €XXX fiscal XXXX, XXXX. compared the plus For a was XX.X% of full million year at net to fiscal sales

transitioning platform net before, by brands mentioned model. to As our sales impacted is curated

GMV Before the and model, the the GMV. After sales to to is is fee. the model, brands transitioning in the selected wholesale curated one-time and lower equal growth net transition rates effects the and financial QA the one-time model, wholesale to quarter. increase the our in a difference net purely the is model than platform transition sales platform The accounting from net equal to is the in sales increase in effect. in in platform net GMV of sales between Due

the months As and book effect be for one-time with platform we the net sales. sales brands, those brands, in as full fee will will again. CPM grow the net after of line this GMV now XX over transition

seamlessly in fourth under brands of the As quarter, planned, major CPM. six were operating the

great position in models We offer with interaction a in are to both brands. our

GMV in despite top with many compared XX% year growth fourth the remained in in quarter. COVID-XX region lockdowns. significant before, the the U.S. the growth prior by XX.X% The year world. Mainland saw fiscal a grew mentioned once As ‘XX regions regional China quarter, growth we again of to

in Our profit total gross XXX points or and Return XX rates industry. effects in to higher than €XX.X share million. Out the driven of by our operative compared basis period, our The year-end the XXX stronger underlying of revenues, LTM of countries duties CPM as gross prior end remained LTM XX.X% QX Reported and X.X% were increased our GMV improved by to months to prepaid the position XX.X% a increase, price always. from basis ongoing growth. increased increased points focus originated margin now one by share XX.X%, on profits the accounting charged margin full of of stable, reflecting million up orders high the effect. by shipped customer, fully million €XXX, CPM basis stable, with points €XX.X by of Mytheresa. year-over-year, with XX.X%, the last growing to The year the XXX the highest consistent AOV even gross in the of €X.XX

to line due fiscal compared increase Also mostly year year for margin to price of stable. unique positioning million, XXXX. year in the profit operated and the over profit fiscal For absolutely without driven quality. operating the increased stability compared The a The gross increased million €XXX years full underlines on quarter increase costs for XXXX, fiscal by the in of growth X customer XX.X% market, gross million fiscal XXXX, an mentioned past €XX.X sustained ability full maintaining order to full payment our top fiscal margin to achieved in underlying the achieve Mytheresa XXXX XX.X% by full the to CPM strong margin remained Shipping XX.X% the the ships. to year, and our the €X.X gross effect. profit compromising our the full gross total selling in an before a in year

As a XXX This costs of we pay for customs the shipping is percentage from payment in duties year points the GMV, the as an prior quarter increased of by XX.X% in increasing where basis XX.X% driven mostly increase customer U.S. all of the countries quarter. share to such and

the mentioned gross reflected and payment prices is same our these amount. our of profit respective in margin therefore, countries increases the before, duties in in As

at exclude relation X.X% the cost and GDP to GMV shipping payment ratio X% costs, year versus the previous you was If in in stable quarter.

payment year fiscal full XX.X% fiscal shipping to cost the in year ratio versus was GMV XXXX. XX.X% For in and relation XXXX, the at

pressures stable. cost GMV cost versus was internationalization for the again fiscal the keep X.X% DDP previous in the were ratio to increasing logistics, year. If payment we the you this able full Despite on ratio year and shipping to X.X% at and costs, stable exclude in also relation

million due in expenses quarter, €XX.X new year €XX.X marketing million compared customers the number acquired. to prior fourth the to quarter the of to increased During

As previous marketing of a at stable expenses the compared percentage XX.X% year in quarter. XX.X% were GMV, to

marketing stable selling, as compared to very was by by XX.X% again XX.X% fiscal or Adjusted For performance, XX.X% expenses year. Mytheresa due customer to and €X.X ratio decreased to cohort the shifts the XXXX, keep GMV full fiscal strong expenses to million QX. the ratio the good in active and between administrative once increase quarter in XX.X% points at in Despite for SG&A fiscal to marketing a of previous in with million year full basis customers €XX.X grew year. and was able cost year XXXX. the cost stable fiscal a XX cost percent Adjusted XX.X% from general quarters the

For XXXX, the to compared leverage compared year cost administrative costs, of was QX selling, GMV XXXX. to increase public cost in Despite expenses previous in year were XX.X% in and the adjusted the the was keep a margin as adjusted compared €XX.X full and was Adjusted year EBITDA was we adjusted profitability at in general margin expenses This cost XXX to in stable in all EBITDA fiscal at market. fiscal personal relation remarkable million basis of fiscal pressures prior the in €XX.X quarter. a SG&A able the and XXXX X.X% despite ramp-up quarter. ratio XX.X% achieved stable. and million X.X% points company The year to the to

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

strong GMV at is adjusted an at EBITDA margin in of and X.X%. margin we prior period stable the a deliver from X.X% X.X% amortization and fiscal bottom to Depreciation shows business the performance year. and year, expenses X.X% year adjusted true QX on model. fiscal €X.X For previous to which strength line, continue million the the The resilience industry-leading EBITDA the exception industry. to or And compared top €X.X our or increased full million the of in relatively were in the

also stable on For business profitability fiscal The at this level. visible resilient stayed year, in income the ratio expense to operating of full model relation GMV our is X.X%.

strong of million of growth of €XX.X This fourth previous XX.X% quarter the an represents the the to in quarter. reported operating For XXXX, million a €X.X income in fiscal quarter. compared year Mytheresa adjusted

or margin income in the EBIT quarter was at X.X%, basis quarter. XX higher this Our than previous in adjusted operating points year

compared growth thus full year income €XX.X of in the fiscal million €XX.X significant representing XXXX a and achieved of XX.X%. the For adjusted XXXX, fiscal also operating million with we year an

growth, income of XXXX, year adjusted of XX.X%. continued have margin adjusted XXXX. We and net income full in an Adjusted income track on visible are €XX.X million was For quarter the and EBIT income X.X% prior the adjusted increase margin delivering This Mytheresa million EBITDA, related year. adjusted in also compared and margin the multiyear increased Adjusted remarkable. generated XX.X%. an translates percentages consistently on we in their adjusted record P&L. profitable increase fiscal year X.X% is an for million strong transparent year, achieved continuously the previous at report for million non-IFRS as into on €XX.X of focus the performance. net the full XXXX strong this margin profitability X% net this of operating level. income full in income period, level, measures. fiscal fiscal and X.X% To EBIT very resilient was to also to is Also adjusted in from year our fiscal representing €X.X to net which fiscal net a EBITDA, clearly net income €XX.X compared simple at year adjusted a

cash to statement. Moving the flow

flow players a During €XX ROCE a our we fiscal €XX.X in also our XXXX. the increased to on reflected brand and underscores operating cash employed. strong is in equivalents the at the increase in have million. us most high generated operating to Net model. year and industry, be in a now June operating able the continuously XXXX increase positive XXXX year doubled to that fiscal owned also return ended From continuous operates XX cash operating and XXXX, Mytheresa inventories a XXXX, decrease million and adjusted free strong adjusted capital-light XX, apart by To fiscal profitability capital a driven year in and activities fiscal report superior due from to XX.X% months CPM. in sets cash in This flow, positive was switching cash to

look at business million, a bank We investor track availability and the model. total in XXXX. information, ended more with presentation. million our return multiyear please have the record €XXX.X of running and of and a a has quarter strong Mytheresa of capital-efficient debt, For a high financial unused under credit as no position cash XX, revolving cash June equivalents facilities €XX of a

of degree. much in to luxury next in individuals, we year overcome €XX will guidance of be a high guide our the line our of worth Mytheresa €XXX bottom less and net to ending €XXX GMV, the and representing Turning X.X% €XXX million the now unprecedented expectations current highly with in in growth; COVID online in affect in resilient also our these also and already gross line has with to but the and and tensions XX% fiscal €XX €XXX predictable. But to current a past to is is GMV a times, for million range year. most challenges Asia June adjusted growth; XX, pressures to Europe, middle the €XXX between EBITDA performance. top XXXX, also XX% predominant of the environment sales shown restrictions representing Even EBITDA uncertainties the around want Therefore, of belief fiscal war million, for quarters margin net year inflationary intact. million of strong unprecedented overall to million, A XX% million XX% X.X%. may representing profit million, million €XXX challenges at an sales ‘XX market XX% growing growth; adjusted still lesser in to Taiwan, to XX% as the prudence of are and in to line The situation range

our customer outlined As confirm the investor past, and fastest. in as Therefore, back clearly in this the medium-term targets. bounce presentation we well, our will the high-end we

We continue to of XX% annual growth to medium-term. XX% target GMV

in medium-term existing slightly We grow share adjusted EBITDA experiences will In customers substantially profitability we a level year reduce increasing for XX%. impactful to our around higher of the our and X% in spend and XX% our marketing EBITDA be customers a able EBITDA also higher the still GMV to XX% GMV, target to margin XX% for long-term, positioning creating a to per longer-term. ourselves adjusted current with while of with adjusted

performance We during are our very satisfied the quarter. fourth with

for that business It to fiscal and in multiyear leadership record. line this now over exceptional in industry. online bottom and remarks. is its will year with track position We Michael call top turn builds on are level the market Mytheresa’s proud the I proven on unique performance a target unparalleled concluding model luxury undisputable a for to and back and the his

Michael Kliger

Thank you, Martin.

in results. share We opportunities. and advantage fourth pleased the perfectly take quarter ourselves the and consolidation expansion earnings global ongoing with full are market very see platforms, fiscal to shift of continued and digital the year positioned We to online luxury the spend,

offers confident high-value Session multi-brand I would your is. experience ask for Question-and-Answer the Mytheresa to digital that, questions. operator there And the shopping that open to are with us consumers best We like

Operator

from is [Operator JPMorgan. open. Instructions] Our Matthew, first question is from Boss Please go ahead. your Matthew line

Matthew Boss

and nice Thanks on a quarter. Great. congrats

Michael Kliger

Matt. you, Thank

Matthew Boss

release confidence in the model the ecommerce consolidating time? cited the industry? that Maybe take So, you could that consolidation to space. and are you over market in elaborate business what And on in share positioning seeing luxury Mike, Mytheresa’s clearly gives you unique you

Michael Kliger

like that see around a we these is two saying two other the we player there curatives. that in Farfetch, consolidated while multi-brand is is have One terms what placed And in successfully fundamentally these on in see Sure. clearly the the see marketplace, and leader who performance we positions, exist we a is multi-brand offers. I feedback, as quite financial multi-brand a And as is demand. that is customer mean the and leading, of ourselves has for do marketplace. the and in believe of terms models ourselves consolidation. curated consolidation. There demand. best customer customer I there based is we is the been models And two see we And think curated and by in

discussion, pandemic to model business needs. we accelerated And The this. it’s be So, there understanding not an is think always will we consolidation. have believe a seems – of customer this

Matthew Boss

maybe then you trends in first And year? maybe your could for that ecommerce supports GMV ‘XX expectations above-market are Great. you speak categories just regions the luxury or across in have seen your a to follow-up, for growth And that this to-date? guidance just what quarter

Michael Kliger

terms influenced trends, June, I mean in heavily vacationing. of August So, July, by

we sales to outerwears, So, in resort, vacation have continue wears. strong swimwear,

So, into they and continued way these summer. late were very strong, the

the many saw core vacationing our think we before. festivities, mood resort right triple or of now which on gatherings. we spring, in with double our see customers back social parties, what to exclusives, And we is I collections. did swing already the were we many did And

back allows our for business challenges. at If again agile But believe it customer now regions, lot extent, of in, since the Europe. been strong seen we in least outcome for some by focus of at regionally to has of least is same those overcome, challenges. Europe, sort we this saw across fully luxury, and our will lockdowns, still U.S. it on But in a and terms are us you make on go least out the a at clear, very less focus restrictions. on party, war accept sentiment, the ‘XX by know more whenever People China, the be focus ever digested, continent have today, have model to to sentiment address driven as uncertainties still again, the trend and less to of those normal will wise, in our the festive, but all this Korea there exists, on we course, there, an high-end, U.S. is of up that we continues that.

Matthew Boss

Great color. Best luck. of

Operator

Thank you.

is your is from Chen next Please line open. Oliver ahead. Our go Cowen. question from Oliver,

Oliver Chen

results. Martin, great and Michael Hi

at Our higher Cowen around concern data is Europe. investor and is showing increasing pressure high-end costs the definitely energy in

promotions, your a is So, love the been constrained conservative your you What many I more would in are had broadly And more marketplace. assumed variables? there. about so impressive have given guidance should promotions very thoughts you selling. for price we full Also, unknown

lot a customer. behavior will of Thank However, on model are one A their unique new lifetime process customer execution? customers you a very be the if on and you for quarter. thoughts and follow-up and you. this they have and or a What your and added cohort a with high-end done value retention curation focus

Michael Kliger

Thank Oliver. you,

So, address let me those three.

look on at does does business is our on ways we first to very increased When that energy two again, year do it. AOV are focus little. a at we cost you our testament what look to is There quite this fiscal achieved What which the So, model, high end. have to results, energy. our

mitigated grows Our costs to digested X%, even If be to the We which energy, it XXX close drives XXX. now AOV basket increase shipping above is because XXX-plus then is close AOV, fully. grew dramatic that can the the in X%. on fully

matter. doesn’t the are but else, to in household wise medium tier, does in consumer income increase energy spend. It it is does yes, affect discretionary not Sentiment doesn’t dramatically the that material, prices side, but meaning matter. impact the something On up their going terms and cost just of in

a On the And see overstock. amount promotion at result market. really of promotions we the side, moment overstock the the of in don’t huge is

full We go capsules, Our for best that bargain. focus customers the have on for for been policy to does latest, price. the for newness, not exclusives, has always for

we we acquire focus And are most and the of positive. should QX So, customers is QX cohorts, important of pattern well on quality always can our explained, is is report which promotional the we showed before, a higher customers customers and prepared acquired feel the past. back as as our business, same intensity. return that this of to lifetime the we is par lastly, And the with as always only development I be in also the also the

Oliver Chen

you. Thank

Operator

Kunal, next is line UBS. Kunal ahead. go question from is Please Madhukar from your Our open. Instructions] [Operator

Kunal Madhukar

A Thanks thank XX% question. if half taking for you One, to of XX% expectation on year. the and grew GMV of this my couple, second you I in could. growth XX%, the

is trend. XX% in of So, the with line the kind

within China you was kind the quarter, second, are was for are seeing is So, through full you. you the the space just down most Thank to and players XX% China what XX% a the to other because do one. last terms year? the quarter, understand of, have follow-up year, not year, XX%. in said And you that on the to seeing but XX%, China or of in last What trends? see down it That’s how of trying kind next of luxury evolving

Michael Kliger

year. in yes, is think grew momentum and for again, XX%. XX%, question, On we XX% half is our QX the first We it the But I QX key. in grew

So, accelerating. we are

they That’s So, momentum ever China one. a the we increased very question since I in we our pandemic, about is XX development. as in again, months, And to China they and the have driven XX and it X on accelerated overcome behavior two, lockdowns Number But each. the April. see months from as optimistic QX for into number population I of XX% whether that no are China it they by difficult, is programs XX% depends China. is has the QX, will we million mean a launch huge large-scale have next same but couple what months, other that on Martin, and market. we sizes number therefore, continue regions based believe overcome have it. of to

We you again Can grown in China. remind? have

Martin Beer

Exactly.

We also by Mainland strongly full the the we China fiscal China for fiscal give in year grew QX, growth China full the in in grew year, but of XX.X%. rate and overall

Kunal Madhukar

if And Great. could. a as follow-up, I

are they that folks as So, as differently other XX%? you whereas what China doing XX% far growing, are declining to is you concerned, versus are

Michael Kliger

have I mean we One, points. admit. two to

brands in big as China. luxury the not of far, some by as are, We

not from luxury forward. do We key come we a focus why which the aspirational the the aspects very then So, means confident customer. one today building on customer. We we focus on luxury on the basis, going different are huge we, But we of outlook, focus on wardrobe as customer. have opportunity the we report a

XK them markets, an for bag, customer and icon will are course, past, is So, China customer it customers some a comparison terms also the reported really different They concerns. that a They at tier. in to really bag. a in This times are economic luxury the of of this accessory very buy, sometimes in different That’s installation, because thus, globe, themselves only a a to that’s platforms. XK, base serve a because Be money to climbing. save consumers in point that younger the in huge not real we build get in the luxury China, customers the certainly estate wardrobe Piana. much stronger first by even and serve social demonstrate tough, course, luxury building why wardrobes. capital delay. of the at than is customer elevated the that moment. These more want also gigantic will far a gives customers, Alaia, as us Loro it’s across if market. purchases It’s we we afford not be one or postpone, but And market Europe, is, We of other social segment affected That climbing.

Kunal Madhukar

so you much, Thank Thank you, Great. Michael. Martin.

Operator

Thank you.

Abhinav question Generale. next line Our from is is go from Abhinav, ahead. Please open. Sinha Societe your

Abhinav Sinha

Hi. Thanks A side. of questions for taking couple my my question. from

is executed? be purely size, will one some what of it XX% Like terms give that of color number be growth, us how it you So, get or say when in XX% basket will like can will you much thing in of underlying to terms to average about of in second you like else? how customer talk order growth something strong for of X% was customers that And driven size? much X% that and how the when basket is value was the XXXX, or inflation on

Michael Kliger

item-driven, second, basket value with not the value start the in but of me item. increase Let was

higher difficult clearly a type XX% are two product year. inflation, exist it’s inflation last of of There there. but effects there word for but is value, in what because our we sell So, didn’t is

So, it’s a new product.

year can the lines a constantly apple-to-apple not in coming put products items have luxury out last so were bags as that out at collections. fashion And a bag is that sit you was in new of is maybe really XK where clear that and was produced year it last more now new X,XXX are that

best we and in So, drive increase more are. driver we the but they is the that saw of for just that. of is, valuable the personal continues acquisition. driver our drivers this This loyal business. with sell. But it’s through loyalty. not is hand, often per items one And customer. how spend to customers more the first on it’s X% basket, We customer assumption This shoppings. average per face new just be that the main one clearly over of spend customer the how That’s continued drive We we year question spend our

Abhinav Sinha

you. Thank

Operator

Thank you.

open. go Schenk Stanley. Please ahead. Our is next question line is Lauren from Morgan from Lauren, your

Lauren Schenk

you. Great. Thank

guess two Just I quick, housekeeping questions.

delays quarter the out the into or fourth third delivery think in at points on points the which of you from GMV we time first, timing I XQ. talked X last might some the Just about thought XQ quarter, to of spring acceleration X in quarter, growth shifts, be

terms so of estimate So, that, are still still I to just full to much. CPM that confirm to wanted the GMV the did of we and terms accurate. then line go year? And timing, to when fiscal in send again, happen in X-point should Thanks X-point ‘XX that looking and and sales in just for is secondly, rollout

Michael Kliger

Yes. Martin can take the second question.

if from was On discussion in QX, a had first correctly. we believe QX deliveries Martin, I actually the the one, to delay

Martin Beer

March was is it between QX Lauren was It right, to and because of QX. April.

Michael Kliger

Okay.

Martin Beer

‘XX, Timing fiscal brand in September year. so brands of last of shift It bit that August, we, a already year first Lauren, X% the will July, a QX QX, This to And yes, the in smaller. fully of cannot first impact. yes, translated to Remember, the But this big mean be from right, is But sales CPM into QX, started running in I there happened. obviously, effect with so the year, fiscal X% digested. be was in completely the inventory the shift. was basically direct effect six deliveries we shift.

this with again. effect so the over, when when brand the in increases line will, months the is GMV the full sales And per net XX is then brand, of

and first brand in year. There effects following three then one five shift is year brands the might fiscal this additional to the in there So, of come brands. this be running will

XX% with to those that’s guided obviously this So, And year, end fiscal line much year XX%. brands in the growth for growth then this net obviously, difference clearly with why sales the the in, GMV. we are, then smaller. very sales of I and with rates shift mean is smaller between this, The of those effects And net is over. for the then are

Lauren Schenk

End Q&A Thank you. of Okay.

Operator

you. Thank

no further have questions. We

concludes joining. Thank for this you So, today’s all call.

disconnect now may You lines. your

MYT Netherlands Parent B.V. (MYTE) 15 Sep 222022 Q4 Earnings call transcript