Mytheresa expects double-digit growth in Q3 despite 'tough' market environment

Luxury e-tailer Mytheresa has confirmed that its third quarter sales are expected to rise between 15% and 18% year-on-year.

The company forecasts sales in the range of £196-201 million (€230-235 million) for the third quarter ending 31 March 2024.

It also posted improved profitability on adjusted EBITDA, with an expected margin of 3-4% against the prior year quarter.

As a result, Mytheresa has reaffirmed its outlook for the full-year ending 30 June 2024. It anticipates annual sales growth between 8-13% and adjusted EBITDA in the range of 3-5%.

Michael Kliger, CEO of Mytheresa, said: "We are extremely pleased with the strong performance in a rapidly consolidating marketplace.

"The results underscore that Mytheresa is not just a luxury e-commerce platform. We build a community for luxury enthusiasts and create desirability through digital and physical experiences. This makes us the winner in an otherwise still tough market environment."

The expected rise in profits and sales comes amid a slowdown in the wider luxury market. Following troubles at MatchesFashion and Farfetch, along with a recent drop in sales at LVMH, Mytheresa's latest trading update injects some hope into the sector.

It comes after reports that the retailer is among the potential bidders for Yoox Net-a-Porter from luxury giant Richemont.

The retailer previously said it is "constantly evaluating opportunities to grow our business, which may include M&A activities from time to time". However, there was no obvious hint of a deal in today's announcement.

Mytheresa will release its full third quarter results on 15 May 2024.