The Fashion Network recently opined about the decline in multibrand luxury e-commerce. “After the end of the pandemic, luxury consumers have eagerly embraced in-person shopping again, to the detriment of online purchases and especially of multibrand e-tailers, currently in free fall,” wrote columnist Dominique Muret.

She observed that many luxury labels have “jettisoned” the channel in favor of their own monobrand stores and increasingly use their online platforms as a digital “assist” to get luxury shoppers into the stores.

Against that backdrop, Mytheresa stands apart, ending fiscal year 2024 on June 30 with annual revenues up 10% to $935 million (€841 million) and gross merchandise value (GMV) topping $1 billion (€914 million). Average order value (AOV) was up too, reaching nearly $800 (€703) from $727 (€654) last year.

Multibrand Luxury Retail On The Ropes

While the decline in multibrand retail is felt most strongly in luxury department store channels – declining between 8% to 12% in 2023 – multibrand e-commence dropped about 1% in 2023 from 2022 levels.

Overall, wholesale distribution is far less important to luxury brands today than ever before. For the first time in 2023, luxury brands-owned retail channels (52%) overtook wholesale distribution (48%) in share of sales, according to Bain & Company’s 2024 global luxury goods update. As recently as 2019, some 60% of luxury brand distribution was via wholesale.

Not unexpectedly, there has been tremendous turbulence in multibrand luxury retail, both in department stores and e-commerce with Matchesfashion closing down, YOOX Net-A-Porter in limbo under Richemont ownership and Farfetch saved at the last minute by Coupang.

Mytheresa is the exception to the rule. With confidence CEO Michael Kliger stated, “We have strongly reaffirmed our position as the best high-end luxury digital platform. Mytheresa builds a community for luxury enthusiasts.”

Benchmarks

Mytheresa boasts longstanding relationships with elite luxury brands, notably Bottega Veneta, Dolce & Gabbana, Givenchy, Gucci, Loewe, Loro Piana, Saint Laurent, Valentino and more, where customers get first dibs on new releases and exclusive capsule collections.

Mytheresa has also crossed over the digital divide with real-life experiences, including:

• Multi-day “Money-Can’t-Buy” experiences for top customers in Italy with Brunello Cucinelli in Lago d’Orta and Capri hosted by Dolce & Gabbana, plus a yachting trip with Valentino in Nice, France during the year
• Summer pop-up shop in the East Hamptons with Flamingo Estate which attracted over 6,000 guests
• Style Suite personal-shopping events hosted in luxury hubs across the world, wherever its top customers gather.

Reliance On Top Customers

Mytheresa’s top customers are the “luxury enthusiasts” it is working so diligently to cultivate. They represent customers with the potential for an average annual spend upwards of $40,000 (€39,000) and in 2024, top customers accounted for nearly 40% of its GMV, up from one-third in fiscal 2021.

It also reported the number of top customers rose 3% and their AOV advanced 5% in the fourth quarter 2024 over same period previous year.

U.S. Sales Explode

Another remarkable achievement in 2024 was a 25% revenue increase in the U.S., up from $153 million (€$137 million) to $172 million (€172 million).

Since the U.S. has the highest population of the world’s high-net-worth and ultra-high-net-worth individuals, it can continue to count on attracting their patronage going forward. Its Net-Promotor-Score of 83%, which according to the company leads the industry, should help spread the word about Mytheresa.

Currently, the U.S. accounts for 20% of company revenues, up from 16% in fiscal 2022. Europe, excluding Germany, generated 40% of revenues, Germany was at 15% and the rest of the world at 25% in fiscal 2024.

Pluses Outweigh Minuses?

A TD Cowen research note from Oliver Chen stated, “We continue to like MYTE’s key competitive strengths in curation of the finest edits in luxury, unique content generation and convenience-oriented customer centricity.”

Cowen also praises the company’s highly curated product selection and exclusive capsule collections in partnership with luxury brands.

However, Cowen cautions about the potential for increased customer-acquisition costs which could make attracting new customers challenging given the current unsettled macroeconomic environment.

“Strategically, we believe MYTE should focus on physical customer acquisition, retention and awareness-building investments which may help drive more efficient customer acquisition costs over the longer term and offer a more compelling way to compound growth,” Cowen advised.

Currently, Mytheresa is guiding on GMV and net sales to grow in the range of 7% to 13% in fiscal 2025. Signaling caution, Cowen just lowered its revenue outlook from previous +12.4% to +8.6% to reach $1 billion (€915 million).

“We monitor slowing aspirational customer spend and ongoing promotion intensity,” Cowen observed, adding that competition from a merged Neiman Marcus and Saks “will be something to watch.”

However, Cowen also recognizes the value of the longstanding relationships with luxury brands that Mytheresa has forged since its founding over 30 years ago in Munich as one of Germany’s first multibrand luxury boutiques. It successfully took its show on the online road in 2006.

As long as Mytheresa can keep the leading luxury brands in its orbit, it can count on the world’s luxury enthusiasts to beat a path to its door. No self-respecting fashionista dresses head-to-toe in a single luxury brand and that is Mytheresa’s ace in a hole.