Luxury site Mytheresa is betting on the ultra-rich. And it’s paying off
The online high-end retailer Mytheresa.com is faring better than peers and bucking some of the luxury sector’s recent malaise by focusing on sales to some of the world’s wealthiest shoppers.
“This customer continues to spend because luckily the economic problems we have so far have not really impacted their outlook on spending,” Mytheresa CEO Michael Kliger said in an interview. These shoppers are each spending $100,000 or more on the site annually.
Sales to entry-level luxury shoppers known as “aspirational,” who increased their spending during the pandemic because of extra savings, have been pulling back, particularly in the U.S. “This business is still slow,” Kliger said.
Aschheim, Germany-based Mytheresa has increased its share of top spenders by offering more categories, including luxury children’s wear and home goods. It’s also offering more exclusive events, such as a private cocktail reception hosted by Domenico Dolce and Stefano Gabbana of Dolce & Gabbana fame at their home in Portofino, Italy.
Mytheresa’s top clients represent around 3% of its 1 million customers but drive 39% of its business, the company said Thursday when it reported quarterly results. That’s up from 33% in 2021.
Mytheresa said it expects net sales to increase 8% to 13% in the fiscal year ending June 30, 2024, and sees its margin on adjusted earnings before interest, taxes, depreciation and amortization in the range of 3% to 5%. Shares surged 16% in New York trading as of 11:47 a.m.
That compares with competitor Farfetch Ltd., which last month cut its full-year projections and reported weaker-than-expected revenue for its second quarter. Shares fell as much as 43%, their lowest intraday level on record.
Most of Mytheresa’s top spenders are high-powered business leaders who are short on time and don’t want to scroll online through endless pages of outfits, Kliger said. Instead, they want a curated selection. “Inspiration cannot be done with an oversupply of product,” he said. "Sixty dresses may still be inspirational — 200 is tiresome."