MyTheresa Is E-Commerce for Luxury. The Stock Might Be the Cheapest Thing It Sells.
Mytheresa, based in Munich, went public in the U.S. in late January, raising about US$350 million for the company.
Mytheresa, based in Munich, went public in the U.S. in late January, raising about US$350 million for the company.
Bricks-and-mortar fashion boutiques have been in a tough spot during the pandemic. Small stores, after all, aren’t set up for social distance. Online retailer Mytheresa has been able to fill the void. The website caters to wealthy shoppers looking for help in finding their next designer handbag, pair of shoes, clothing item, or accessory.
Mytheresa, based in Munich, went public in the U.S. in late January, raising about US$350 million for the company. The listing grew out of the bankruptcy of Neiman Marcus, which purchased Mytheresa in 2014. The small-cap has a market value of about $2.2 billion.
Mytheresa stock (ticker: MYTE)—technically an American depositary share of parent company MYT Netherlands Parent—was recently trading just below its $26 initial-public-offering price after having jumped to $36 shortly after the debut. The stock could recover those losses and more in the coming months.
“They are at the intersection of two higher-than-average growth trends in retail: luxury and e-commerce,” says J.P. Morgan analyst Matthew Boss.
Luxury buyers have been slower to adopt e-commerce. Before the Covid-19 pandemic, some 12% of global luxury sales happened online, compared with a 20% share of overall retail. The gap is closing. A recent study by consultancy Bain estimates that the share of luxury goods sold online could nearly triple to more than 30% by 2025.
Meanwhile, the overall luxury market is growing by about 7% annually.
The tailwinds put Mytheresa in an enviable position, and the company should get a further boost from its expansion in the U.S. and China, which are currently just 10% of sales each. (Europe was 60% in its latest fiscal year.) The company now has collections for men and kids, and it could expand into categories like jewellery and furniture in the future.
Mytheresa isn’t your typical money-losing tech start-up. The company, which reports in euros, earned €6.4 million ($9.9 million) in its latest fiscal year on €449 million in revenue.
Sales have grown an average of 22% over the past two fiscal years, while adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, have grown at a 30% clip. For the fiscal year that ends in June, analysts are forecasting revenue growth of 25%, to €560 million. Analysts, who track adjusted earnings, expect the company to make €30.4 million this year, up about 60% from the adjusted figure last year.
“We are dealing with high-net-worth individuals who like to spend money—that’s a great customer base, and our core asset is this customer,” says Mytheresa CEO Michael Kliger.
The customer focus has helped the company earn a consistent profit, with a gross profit margin of about 45% and an adjusted Ebitda margin of about 8%. Other e-commerce players at Mytheresa’s early stage of growth have been years away from turning a profit.
If Amazon.com is the “Everything Store,” Mytheresa has taken the opposite approach. The site carries about 200 brands, fewer than luxury e-commerce rivals Farfetch (FTCH) or Richemont’s (CFRUY) Net-a-Porter. A recent search for “black dress” on Mytheresa’s U.S. site yielded just over 2,000 results, versus more than 7,000 at Farfetch.
Mytheresa’s most loyal shoppers get access to personal shoppers, styling and concierge services, and other perks like invitations to exclusive designer events and parties.
CEO Kliger says there’s a fine balance between presenting products in a way that’s helpful to shoppers and overwhelming them with an endless assortment. His company is focused on curation and more-abstract shopping desires, he tells Barron’s.
Customers looking for a specific Burberry coat, Chloé handbag, or pair of Gucci sneakers are better served buying directly from the designer.
Mytheresa’s website and app, now set up for spring and summer, are currently promoting multibrand compilations including “sandal season” and “talking-point pieces.”
The unique edit, to use the fashion-industry parlance, stands out to customers. Some 90% of Mytheresa customers surveyed by Cowen analyst Oliver Chen said they were likely to recommend the site to a friend, and 75% of them browse it weekly. Nearly 50% of Mytheresa’s customers spend at least $30,000 on luxury goods annually, the survey found.
Investors have been far more stingy when it comes to Mytheresa stock. The shares trade for 2.8 times this year’s estimated sales, versus 8.2 times for Farfetch and 4.5 times for The RealReal (REAL)—both of which are losing money.
Mytheresa could rally as investors reconsider that valuation gap. J.P. Morgan’s Boss has a price target of $38 on the stock, 50% above its recent close.
For now, Mytheresa stock is a luxury play at a bargain price. The sale is unlikely to last.
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Passionate about both decor and travel? Design industry pros are leading global tours to share their secret shopping sources—and help you score one-of-a-kind pieces.
WHEN MELANIE BURNS of Oklahoma City first entered the Grand Bazaar in Istanbul, she was stunned by its sheer size and the pathways winding through its tented structures like a tangle of yarn. Though well-traveled and an old hand at hunting one-of-a-kind objets, she’d never experienced such an onslaught of potential riches. “The bazaar is intimidating,” she said, “the size of about five football fields.”
She had expert allies, however: Clare Louise Frost and Elizabeth Hewitt of Tamam, a lifestyle brand and Manhattan store specialising in Turkish antiques and their own collections. The duo led Ms. Burns to a shop layered deep behind other shops. “It was no more than about 14 feet square, and stacked high with the most beautiful hand-woven vintage tapestries I’ve ever seen,” Ms. Burns recalled. “I would never have tackled the place without these women. They are walking encyclopedias, they speak the language and when you shop with them, you don’t overpay.”
Ms. Frost, who calls the bazaar “her second home,” lived in Istanbul for nine years, and her business partners, Ms. Hewitt and Hüseyin Kaplan, still live there. Together they host trips to Turkey, capped at 14 participants, all eager to buy décor to take back home. Overseas shopping sprees like this are an increasingly popular new category of travel. Interior-design pros immerse travellers in a country’s culture and guide them to fabulous finds, whether an ornate vintage camel bag from Turkey or a contemporary French sculpture.
Indagare, a travel company in Manhattan, is seeing a growing market for overseas shopping trips. The 30 Insider Journey trips it ran in 2022, including seven design-centred jaunts, drew 540 travellers, twice as many as in 2019. Sicily, Japan and Mallorca are locales Indagare is eyeing for future design trips. Penta, a magazine that, like The Wall Street Journal, is published by Dow Jones & Co., has a partnership with Indagare to organise trips.
“Covid taught us we need to go when we have the opportunity,” said Grant K. Gibson, a San Francisco interior designer who himself has led eight trips to India and two to Morocco and is adding excursions to Egypt, Mexico and Turkey.
Trips are as cultural as they are commercial. Before Mr. Gibson’s group of 10 globetrotters start looking for linens or bargaining for bowls, they tour Jaipur by electric rickshaw and visit a textile museum. “I want them to understand the history and know where design ideas come from,” he said. Cynthia Smith, a biotech exec from San Francisco who traveled with Mr. Gibson to Morocco, came home with pottery in a vibrant green glaze unique to Tamegroute, a village that edges the Sahara. “Everyone asks me about the vase, and I have a story to tell about Tamegroute pottery,” she said. “It gives character to my house.”
The packages don’t come cheap—from around $4,000 to $18,000 (not including flights) depending on location and length—but offer you insider access. Designer Chloe Mackintosh of Boxwood Avenue Interiors in Reno, Nev., is leading her first trip this year to parts of Italy and France she knows well. One focus will be the weekend antique markets in L’isle-sur-la-Sorgue, in southeast France, but she’ll also introduce guests to local artisans, including a fifth-generation ceramist. Her group will take a pottery-making class to understand the process behind the product.
Known as “the huntress” because of her many years buying and selling vintage furniture, Ariene C. Bethea says people began asking her to lead a trip so they could hunt alongside her. The owner of Dressing Rooms Interiors, a shop and design studio in Charlotte, N.C., teamed with TrovaTrip to create a journey to the Paris flea markets this May. With Ms. Bethea’s input, the Portland, Ore., group-travel managers lined up accommodations, vendors, translators and tickets to museums. “I plan to help my guests shop, give them ideas and help them learn to tell stories in a space,” said Ms. Bethea, known for her playful use of colours, bold patterns and culturally inspired designs.
Lodging on these guided forays offers design cred, too. Ms. Mackintosh has reserved an entire 16-room château in the French countryside for just 12 people. Tamam’s Istanbul guests stay in a marble-floored hotel that was a late 19th-century Ottoman bank—with a vault that doubles as a wine cellar—and for excursions to Cappadocia, a region in central Turkey, they bed down in a traditional cavelike home carved out of soft rock.
On a trip to the South of France with Los Angeles-based designer Kathryn M. Ireland, visitors stay in Ms. Ireland’s farmhouse near Toulouse. Her trademark fabrics and colourful Bohemian and English-country style are on display in every bedroom lamp shade and living room chair. “Guests shop my house, and then I point them in the right direction to buy similar things,” she said. Ms. Ireland has been leading groups (a maximum of 10 people) for over a decade, taking them to neighbours’ villas, antique markets and out-of-the-way bakeries and bee yards.
Abby Landers first visited Ms. Ireland’s home as a high-school senior, traveling with her mother. Now five years out of college and living in Boston, she recently returned. “Kathryn embraced us, and she has been a mentor for me ever since.” Inspired by that first trip, Ms. Landers earned a master’s degree in interior architecture, and her current boss is someone she met on that trip. “You’re there for a week, and it’s a whirlwind of meeting artists and artisans, all friends of Kathryn’s.”
Kirstan Barnett, a tech investor from Palm Beach Gardens, Fla., traveled to Tangier with Melissa Biggs Bradley, founder of Indagare. Ms. Barnett was particularly moved by dinner at the 300-year-old, whitewashed, riad-style residence of Jamie Creel and Marco Scarani, two of the many designers she met at private events. The home was so richly layered and eclectic, she said, it inspired her to approach her own décor more bravely and reject the notion that a room must adhere to one style.
Some pros who organise such tours offer itinerary planning to folks who don’t want to travel with strangers. Mr. Gibson recently created a program for a group of four going to Jaipur. Though he won’t be joining them, he’s chosen the lodging and booked the restaurants and the experiences.
Travelers laser-focused on in-the-know shopping minus the touring can hire Chicago-based Skin Interior Design in cities such as London, Paris and Milan. The company arranges excursions so clients are shown exactly what they want—whether French midcentury chairs or Venetian-glass chandeliers. “We have an education in art history and antiques, and we help find pieces that keep value,” said Lauren Lozano Ziol, one of the founders. A recent two-day antique-furniture and art expedition in London cost $10,000.
How to get all the booty home? Mr. Gibson advises guests to travel with at least one empty suitcase. Bulky items can be packed and airfreighted home using DHL or FedEx. (Most carriers will pick up at the hotel.) Some vendors ship direct to the States from their stores at reasonable rates. For those who travel with Tamam to Turkey, easy shipping—including having your purchases collected from the vendors—is one of the perks. Ms. Burns, who bought ceramics, four suzani bedspreads and six rugs, said Tamam handled shipping for about $400. “Some of my things arrived before I even got home,” she said.
Five 2023 trips abroad devised and helmed by interiors experts imparting their insider info
Ready to shop your way around the world? Here are just some of the available packages that focus on home design. Prices are per person and generally include accommodations, meals and beverages, guided touring, activities and local transportation.
The owner of Dressing Rooms Interiors, a vintage-home-furnishings boutique and design studio in Charlotte, N.C., Ariene C. Bethea takes travellers shopping the Paris vintage markets and art galleries and on visits to lesser-known museums such as the Museum Nationale Gustave Moreau. Also on the agenda: a foray to Versailles and its gardens, a tour of Montmartre street art and a tasting at the Museum of Wine. From $3,649, Trips.TrovaTrip.com
Chloe Mackintosh, owner of Boxwood Avenue Interiors, a Reno, Nev., studio and shop, leads a 4-night trip in Florence, Italy. Travelers stay at the five-star Il Salviatino, a restored 15th-century villa that mixes Renaissance and contemporary décor. Along with shopping excursions, antiquing and a workshop at a local artisan’s studio, the trip includes wine tasting and cooking lessons. Florence, from $5,500, Learn.BoxwoodAvenue.com
Designer Clare Louise Frost, Tulu Textiles owner Elizabeth Hewitt and carpet dealer Hüseyin Kaplan teamed up to create Tamam, located in Manhattan and Istanbul and specialising in antique and vintage Turkish textiles, rugs and ceramics. Travelers tour Istanbul, Konya and Cappadocia, shopping the Grand Bazaar and the Spice Bazaar and visiting textiles and antique dealers. Plus: a hot-air-balloon ride and cooking class. Tamam in Turkey, from $3,600, Shop-Tamam.com
In London, South African interior designer Serena Crawford guides travellers through Kensington Palace’s Sunken Garden (Diana’s favourite) as well as shops such as heritage brand Fortnum & Mason. In the university town of Oxford, architectural highlights range from medieval to modern, and in the bucolic Cotswolds, guests visit private homes and gardens of renowned interior designers. London & the Cotswolds with Serena Crawford, from $15,350, Indagare.com
Los Angeles-based designer Kathryn M. Ireland takes you on private museum tours, flea market hunts and a trend-spotting tour of design fair Maison et Objet in Paris (ticket not included), followed by leisurely days in the French countryside at her farmhouse outside Toulouse. Paris & La Castellane, from $7,900, Paris hotel not included, KathrynIreland.com
San Francisco interior designer Grant K. Gibson shares his passion for India with a guided tour of Jaipur and Taj Mahal. Participants stay in a guesthouse once part of a maharajah’s gardens; enjoy traditional Indian feasts; learn the history of block printing; rendezvous with rescue elephants; and conquer the chaotic bazaar, comprising flower and spice markets and rug and textiles vendors. Travel with Grant from $9,500, GrantKGibson.com
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