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MYT Netherlands Parent BV (MYTE)

Participants
Martin Beer Chief Financial Officer
Michael Kliger CEO
Matthew Boss JPMorgan
Michael Binetti Credit Suisse
Oliver Chen Cowen
Kunal Madhukar UBS
Geoffroy De Mendez Bank of America
Abhinav Sinha Societe Generale
Call transcript
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Operator

Greetings, and welcome to Mytheresa Third Quarter Fiscal 2022 Earnings Conference Call [Operator Instructions]. Today's call is being recorded and we have an allocated 1 hour for prepared remarks and 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 of and for conference operator, third the fiscal you, everyone, investor to call Thank year XXXX. is today me our Kliger. Michael With CEO,

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

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 year will XXXX. and performance We of the results comment of fiscal today third on

resilience. Our business has shown and excellent strength

delivered very want additional view year you the the of the and fiscal to clear strength shocks saw We with revenues down you time third that in impact unexpected February. sentiment Europe. solid external spring/summer health delays a We had corresponding in at quarter, the of key infections Ukraine to outlined also quarter the and profitability Asia thus consumer third there continued impact unexpected COVID the a public in This X strong Mytheresa on quarter. all life. this, business. war Even negative March in shutting continued fourth our XXXX. in deliveries and in totally allowing temporary messages into from are the more unfortunately, leave But was were and the of of in results into Mytheresa delivered the profitability have Despite the of totally third solid today the the quarter last despite We and moving third challenges. pleased external outbreak tragic very fourth from quarter. rise a end on of results I

for online geographic fundamental all mainly to our well continuous business our as shopping consumers the the drivers category place, as of business. shift First, growth potential luxury untapped for in and for growth remain

All in of our this of belief XX% long-term a XX% supports trajectory growth to annually.

and despite the and excellent have KPIs we which the our excellence in quarter customer loyalty third results Second, sector-leading challenges demonstrating is driving produced profitability. customer

engage for weeks full fourth to guidance. have our brands designer the to a of high shocks. of external value speedy at the multi-brand and customers low luxury the the fuel year quarter with confidence of partner deliver a we remain solid end of fiscal Third, Therefore, our choice our first best to the passing confidence for

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

third First, gross XXXX. quarter, by of our QX in we grew fiscal year merchandise the value to XX.X% compared

online QX of XXX,XXX of lagging some we our in of in quarter course like demand, addition Our market compared recently. first-time only would I QX in players out continued to extraordinary penetration. with expansion annual and growth again consumer United once penetration is growth continued strong with billion XXXX. we XXXX. promotional rate year Mytheresa quarter still still in by by very estimated of good U.S. in XXXX growth regional the is the XX.X% in of wallet expansion a our of be number XX.X% to fashion fiscal by highest global by driven with showed of online share break nevertheless gross to of for in also fiscal long the remind we personal that of XX%, us. markets everyone not of growth have combined by growth a that some EURXX category third the be XX% with is Bain seen compared customers. XX.X% at had is online believe will growth year least which with spend multi-brand quarter goods year It our accounted to high supported of so which third fiscal of the the and platforms strong of growth long-term and was This to XX% by quarter 'XX third luxury over new the term of are over for XXXX. margin to estimated GMV GMV business intensity, Altagamma potential States is Again, third in The X-year XX% year customers luxury by guidance growth EURXXX again evidenced year captured in QX GMV fiscal a of in momentum buyers leader. XX% consistent fiscal over the be to of which shopping XXXX. We billion, would We clear compared growth

activities and hosted high demand to continue strong saw exclusive Domenico such the physical as party in are pieces for up. with are spending therefore a Florida launch states on states and celebrate unique upcoming their events we available collaborations impact We together or in our of brand of customer focused Gabbana at Miami consumers clearly and collection local particularly Dolce these of have Dolce in Vogue special People to in us luxury disposable our a in the hosted dinner in our ambassador Logically, it capsule Mytheresa. only We third dressing & Dallas. dollars the recent from Texas. at shopping like see pop-up Palm with by lunch quarter Beach and with

the to again year China we of by impacted COVID mainland over compared in fiscal of unfortunate was While XX.X% GMV XXXX. outbreaks, of grew return by course QX

long shopping for We destination China. wardrobe the multi-brand aspiration term being of pursue continue our to luxury in best

and in just customer and is generate We revenue the a flagship good believe rather term also provides This on As environment for store JD.com evidenced the growth, on French of skincare presentation success QX business, grew brand launched as kidswear brands third In short-term to the video compared of total year a of business perspective, for categories our more GMV and quarter kidswear. sessions Sisley global to that generations accounted lunch see by not with part Loire, beauty during to the a by we middle we which menswear. campaign digital our was of of trust. JD.com. Christine with luxury the X.X% this approach new continued The very Givenchy, high our awareness Bulgari also category in plant-based beauty but open Dior of us In details featuring From Vuitton, XXXX see in we March. and and fiscal for making d'Ornano XX.X% X by Paris a leader founding a pop-up campaign. the family, Sisley campaign. quarter, marketing the kidswear a degree announcements our XXX a strategy, a launched presence our recent caliber on Please such of JD.com by third longer included Fashion. successful investor accompanied Louis hosted

a to as in range of luxury entry category In new lifestyle a into our of announce May additional addition, products XXXX. I'm delighted full

sector-leading we the We our LTM develop presentation existing It fairly noteworthy acquisition The underlying customer our XXXX highly Please XXX,XXX. details year for launch on to exclusive for year Please with be kept anticipated in cannot available very collaborations Examples our Berluti investor details of quarter date with We full ago. Manolo date collaboration collection average menswear average mono-brand loyalty impactful many driver XX% and shoe the partners, collection impactful easily that cohorts quarter. excellent third the KPIs our in include by And a on XX One content business. and stable, the our customer is that reached exclusively excellent able excellence, the were KPIs. for fiscal in third positive Mytheresa. customer confidence us to on the active grew in value are third QX profitability. we x see of to brand the LOEWE to Spirited year our and created able customer costs rates is of that Away of acquired to business X.X% Birkenstock out to Based quarter we costs Grenoble digital fiscal unique fiscal high-value again Moncler within of which year-over-year by main see on customer strong styles Mytheresa, campaigns number low multi-brand customer available anticipated customers. XXXX. excite more and almost visibility relationships our our produce and third XXXX. compared With QX of on collaboration this. launch again driving campaigns, our the of profitability quarter launch offering. The quarter base in repurchase launch were year our the by quarter, to XXXX. year challenges extraordinary in to deliver customer year for the which fiscal investor fiscal we have the our and demonstrating our order from exclusive first customer Blahnik XX.X% growth Despite of hours. results for more to new XX% the more. of of third above expanded compared brand All multiyear third The gives the per increased annual of to spend the only had 'XX highly the produced presentation in sold again

retention newly All particular customers. XXX% drive of revenue customer customers for are focus as our acquired from the from core. of business A profitable drove X year onwards they this top existing revenues almost our

the personal XX.X% top team have the U.S. allowed Our 'XX to This and To third satisfy customers, to by intimate around world of organize top top particularly engage date customer us our quarter. shoppers grown base customer around we world. the the grew year events in in fiscal and

York. of we quarter year East, XXXX third events Beach, Dublin, fiscal the Palm London, in Zurich Hamburg, Paris, New Middle Just the Dallas, in and held

partnership Collective. we special the and Another service Vestiaire customers with resale to is exclusive service our offered best

value continue sold in year traction quarter of with the and our service fiscal see of third with over this We EURXXX,XXX strong X items XXXX. the customers to a of

measured The of internally customer as Promoter We involved Kingdom industry. XXXX. United expanded a a customers. will also as to to Not and our ability a in proud line quarter service with advancing circularity talk are about year the will globally Martin Net leading the in achieved as grow the with bottom in of quarter gross quite to business third minutes. strong Score execution actively as a summer fiscal our well be to our has few introduce COVID. so high service workforce by as profitability. in our and sector the global we the March and captured business continued XX.X% the margin year high due of results same to of our In quality business we third health driven U.S. of shortages to satisfaction last due in shipping We delays

quarter first with week shocks. and of the our luxury a for of to value choice best fourth The fueled passing remain designer the confidence our multi-brand speedy customers partner high brands and engage for external the of

of arrival winner Dries deliveries of XXX will the last to as launch the of mid-April. comes Mytheresa pre-launched launched on it Capri owned shoppable degree campaigns This experience exclusive pre-launch have & new as such awaited newness partner The and the the collection cadence Gucci. the weeks long available unprecedented Dojaka, global Dolce noteworthy delivers well Mytheresa exclusive director marketing we top Just of creative launch. mentioned group, a marks Zimmermann, LVMH All campaign, LVMH or and as prestigious celebrate weekend is July. house of only the prize, Noten, on at XXXX brands at by X including with only Nensi van merchandise fashion into Gabbana the Mytheresa the to the and Gucci collections of that spring/summer a an served this forms remaining continue as the launch

well situation luxury for consumer a brands luxury Mytheresa coming predict are value development mentioned has The particularly engage as macro-economic sector war but environment it above, as in the the of believe range we makes in the of Asia designer lifestyle of the high consistently we multi-brand resilient choice proven all. ongoing to As presenting will impossible best category on past new months We mid-May partner COVID full to the also of products. a in the the most with launch in to luxury sector for our customers. the be Ukraine,

clearly our we fundamental to model no confidence year challenges. deliver satisfied quarter performance surprise of low that above, full have in We delivering profitable year in the continue ecommerce are results to of our full space. at ourselves in detail. discuss base our our value best as strength luxury growth. come and customer confidence the of despite hand solid the of winners one believe of a to results We high With to building We the demonstrate And guidance. brand it now few as I the combination consolidating in Martin the should future. all fiscal very see gives end full achieving best partnerships fiscal with The outstanding over results overall the XXXX us wardrobe, clear the financial third business

Martin Beer

the previously will provide the January fiscal additional was to otherwise on in detail the prior quarter grew for Unless QX review that to of a numbers key now increase quarter the plus of results Thank EURXXX.X XX% million and year you, mentioned. EURXXX.X previous we'll third financial fiscal XXXX. quarter. from to all million Michael. XXXX quarter, Euro. stated, to the compares the some year topics year GMV This I refer XX.X% March during

growth Our the strong was a before X-year line of events strong start by a external with between We unpredictable quarterly rate outlined rate of quarters XX%. Michael. X-year performance preceding at and showed XX% XX% growth in the a

Our XX%. GMV was July to at from growth December XXXX

customer As our a reminder, the of depth shows growth key GMV driver, relationships. value it our is one and of as

well to XX.X% retention engagement valuable to customers active So comparable a performance. in and speaks as basis LTM XX%. active positioning, highly and continued to by XX On tough customer despite our factors by customers previous strong who customer grew attracting active and track retention existing robust multi-brand due service. strong our X-year the GMV to to and new very us shop external robust year, from delivered XXX,XXX. ability X excellent last with rates months a customers year a customer grew unique Customer our growth cohort The the we in higher deliver growth and a

in third rates increased onetime and the model our our switching net the brands platform EURX.X effect quarter. platform a GMV in The selected the EURXXX.X by X.X%. net the sales or is lower During the is to onetime increase than model. switching GMV year-over-year quarter, million of curated to the accounting wholesale to difference to between sale from financial net million. Due sales model effect model from wholesaler growth curated from growth brands purely the

only can the we as brands, sales. platform CPM the fee For book net

the quarter brands. added in X we third planned As total

platform We GMV sales. switching grow the this Most that onetime will be with brands of the have shifting effects from net transition fee those again. started not after wholesale to XX CPM. GMV sales as and brands the net we over now will line and as months report in the full sales

compared war. which world the quarter. in Mainland to mentioned grew many Ukraine US The quarter again China growth growth As significant region the once a before XX%. growth year GMV with the third we of for remains regions in except Europe, saw by XX% impacted the tough by was prior

profit countries of basis duties charged by the XX.X%, year orders increased even million of to by points CPM to of over last XX.X% the improved with than Gross XX.X% profits The shipped gross our higher year, XXX EURXX.X EURXX.X X months a growing period and margin by increased share growth. share The basis of the revenues our in million countries, Our duties GMV X.X stronger XXX prepaid basis to by effect prepaid XX.X% of Out of compared or prior the driven points total million. reflected the the In the the focus originate share are ongoing increase, example, price, from with full the margin custom U.S. CPM gross consistent customer for higher points position Mytheresa. remained basis XXX as in fully countries. reflecting of from underlying in these points XXX of on stable, merchandise prices. and high-end our GDP the year

EURXX.X an shipped. reflects strong million EURX.X Mytheresa. by grew high-end consistently margin payment increase profit driven in orders Our by of unique costs gross to and total the positioning Shipping million,

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

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

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

the to primarily to our in expenses quarter, During acquired. year million number increased the increase marketing third customers due the EURXX.X prior of million quarter, EURXX.X compared to in

shipping a a existing million accordingly. XX% were and to we again provide expected to in by expenses SG&A quite previous line are multiple we expenses driven increased increased short-term from value million are XX.X% to line top the strong by the competencies in percentage able new expenses year Around at the expenses Adjusted strong had as in decreased percentage factors notice year of attract performance. EBITDA EURXX.X customers selling, the model. in and of quarter. activities EBITDA EURXX.X grew despite in in shows care was less the strong as to and The compared As in-house aligned adjusted X% adjusted X% quarter customer to GMV a million of And Adjusted factors services XX% from to GMV, cohort to XX.X% And quarter. administrative especially expenses Personal margin in costs short resilience most achieved and Adjusted customer given very the marketing general number or quarter. EURXX.X as expenses compared warehouse quarter, the due business shows XX.X%. million. the marketing it at growth with external external our competitive the top GMV line is at unprecedented our of chain. and our EURX.X a with executives modestly along EBITDA core We growth. our ourselves external personal SG&A this the the X.X% factors XX.X% prior remarkable was affecting our margin

year million. We amortization year leading Depreciation quarter quarter. quarter. bottom on The Despite top EURX.X is industry track the at to performance prior points EURX.X as line. year continued adjusted we quarter million this lower XX in is income model in resilience or million our for business the our Adjusted continue operating at margin generated Also an this and year and multiyear million stable of EURX.X to the to record an prior income of compared at top million period. expenses only level, adjusted relatively income EURX were fiscal in resilient in and deliver to the income flexibility operating performance. was the visible X.X%, of net and EURX.X Mytheresa million on in reported adjusted line XXXX effects, income previous third net level quarter of operating EBIT the basis also on previous EURX than period have a compared compared

delivering We visible net and clearly operating growth, adjusted is which continue very transparent our EBITDA, non-IFRS simple EBITDA, are adjusted focus measures. and income P&L. adjusted to on profitable on income

cash flow the to statement. Moving

were after during flow quarters. cash million this due by again GMV in During our end positive switching flow million We not our positive to EURXX.X equivalents balance strong a the and financial sheet. operating increased next inventories XX, taxes, and position free and in in strong XX, and expected cash CapEx facilities availability warehouse, of of a owned ended superior net a EURXX the but the the combined operating inventory quarter, March March and increase in that ended in deliveries total credit model. from which in and 'XX, line X cash generated million had increased with In at capital-light a means under With by ended months equivalents we months the with cash Wholesale growth The of to X the the of CPM brand and driven in equivalents. flow cash our activities unused a activities the cash as cash CPM, EURXX.X operating March decrease finance, XXXX. million underscores Mytheresa XX, operating cash and quarter revolving XXXX. operates cash quarter EURXX.X

reduced EURXX to to our interest committed from expenses. Given reduce our revolving solid cash EURXX lines million credit position, million we

fiscal of Given performance end in the to our visible of given year we full QX increasing the ranges. the QX, at results, weeks expect first achieve the guidance our low

'XX Our end fiscal 'XX. year June will in

achieve EURXXX to to of year to to fiscal representing XX% in EBITDA for of million, and we EURXXX and at in of million million, XX%. given growth. This the EURXXX to an XX% the the EURXXX EURXXX XX% coming 'XX growth to end GMV EURXX million million guidance range of an to to range growth. range our fiscal X% in end, was guidance sales year Gross now for representing at with to million ranges. representing margin the guidance adjusted of million, million EURXX fiscal the XX% and XX% expect Our to adjusted low the EBITDA Net finally, guidance maintained profit our EURXXX 'XX is year XX%

despite see an in satisfied and are the external with in very weeks. the during we third performance performance increase We the last quarter shocks, our

fiscal We a for cash of free bottom and XXXX the top year operating conversion. medium therefore, We line positive that let unparalleled year are flow full industry. is talk level our and performance the free flow in overall target very bit full about long-term proud strong on finish, fiscal our the a target to and very targets. guidance To and an for and me positive cash confirm

GMV target we XX% presentation, medium growth and sales in of annual As to laid out term. XX% net our investor

We year Adjusted able around term XX% for current fiscal year EBITDA in term our to over in be per GMV, medium remarks. the higher EBITDA grow achieved XX% the spend will will call to position reduce margin substantially with long the the in a GMV turn Michael 'XX. ourselves his GMV XX%. now concluding I in double profitability our for a In adjusted X% customers marketing adjusted to we fiscal expect year already and of existing XX% of with longer will also to and stable EBITDA level to term. share higher back 'XX

Michael Kliger

Thank you, Martin.

results overall grow We we online ourselves of luxury are earnings take with the platforms continued to and pleased spend, continue distribution quarter profitably. as positioned see the We very to expansion the perfectly the global and shift third to opportunities. consolidation advantage ongoing and

consumers are and confident best open up the to offers that that, operator We your with Mytheresa the high-value multi-brand digital I'd for shopping is questions. experience there to ask like

Operator

Our first [Operator comes today Matthew from Boss Instructions] from question JPMorgan.

Matthew Boss

So Michael, your passing in in view just despite seen have the the that the in that's basis you've the you few I for target shocks? your confidence gives GMV Eastern above China. drives XXX both the and quarter can seen to past category? that quarter weeks points what luxury growth speedy X-year your this continued guess Europe model resiliency your regional you the in second exposure And matched customer performance of of you then elaborate on that came external

Michael Kliger

breakout is that mean, number that of quite when course, also U.S. and quarter the It lockdowns Europe you knowing QX Mainland in observed. we the China, further is regional into the March developing. them harsh that, privilege and weeks despite to of very continued the from are our of the be trajectory, the observations? have are hit was in April. can also What really course, the the fourth look one, of how strong first And a already numbers, I

in We at angst while in to the defines, And are Martin the that of are terms shift vacationing, customers wealth and I and Europe going course, back also broke them at our out, quite the the continued scale. is business of that produce it's confidence that sits geographies. in gives that explained, in also the in still would us Europe, scenario to February strong our regions. put at that the sudden to back even And business end the of model other and top shift inflation a to the of But where being in pyramid shifts resilient there say, level out back can a moment, the into have profitability. coming what US, of what business confidence. was to of in a But income these second adapt recession opportunity when is demand we did most the this of the

high to weeks, and to demand actually variable so confident. back very our we a more We normal. costs share these permanently with of we confident have back react We scenarios, enough that model in and don't to and very business for to need we're comes are are as world test but come reaction, and more of continues the hopefully

Matthew Boss

And side. then a follow-up for Martin on profitability the

or forward? share? underlying landscape just For or just and to internal dynamics, in go price margin Any of external the as full speak gross to competitive stability gross market grow consider the to quarter the build continue that as fourth selling margin, could any we you the merchandise you to see you change margin to out continue

Martin Beer

on full I said, Michael price mean really As our focus selling. is

gross proposition. and positioning this a therefore, So that challenges. discount-driven a customer unique Mytheresa And values was the underlying merchandise stable also in we quarter, margin the despite target the for not of very

year So And stay QX true focus and in we 'XX we in our that fiscal element on not inherent the It's on continued on. through us will and further our price. and stability proposition. an obviously, full stability, lead give value will up

Operator

Our comes Michael Suisse. next Credit from Binetti from question

Michael Binetti

ahead. us -- continuing GMV made comment trend some how us help Can couple in that look much understand help for quarter. was you you A you the U.S. to the fourth

speaking to of most to be the margin guess, since Is to that pointed GMV U.S. in level? I the gross third the same quarter that in percent in third total the influential the And right to it to driver. fourth you -- big impact Should growth that as GMV. that down about I year-over-year the was basis. like that think quarter. about a looks on you to the it quarter, you XX% we broke said expect where influences seems sales the what CPM, gross Is margin you're in the

Michael Kliger

on question, the mentioned, margin in I'll performance, top also XX% gross that Europe, passing as of we take in on line to comment based one the in was of and question, and first of weeks QX Yes, GMV I trading. was terms projection. obviously Martin can QX. And see the the the main issues QX referring

lower come more guidance the we So our to achieve our the a range. believe level the strong we across and QX confidence that back growth can geographies, to drives at deliver global evenly and

the So question. that's you the margin margin commentary question, gross on Martin, GMV. take maybe And

Martin Beer

Definitely, the gross growing IFRS underlying effects affect But that we QX. of the also a callouts QX. countries the magnitude, CPM Yes. in duties share in the addition. gross financial also margin increased obviously, and of higher we will there's in deliver paid share of profit had, there profit X of are forces where the revenues lot for margin valid The

X So be also gross up will those driving profit the QX. drivers in margin

the mean, basis it be I was magnitude, significant XXX point in increase, a the strong yes. will For quite QX, but

Michael Binetti

if one. wonder I then could And add I

you term. see timing And that? that fiscal a was wonder that is expense marketing lower that in think as much on percent an What for were you What could how specific example. opportunity of you in the progress influences the make -- it that of GMV it achieving longer noted term. 'XX, I is you You longer that pretty

Michael Kliger

share actually very share of customers. driven new We specifically. This a from from business it can the it answer because of existing by question quite versus business customers specific. That's is is good very

really on accounts of for spend, our to marketing to to Our them the acquire online marketing majority new platform. is spend the bring customers, which

other them, levers drive We to and retain have to loyalty. many then vehicles

this. retention, slowly and drive the wallet of of course, online the the and year, of bigger also, becomes from revenue for but the high share cohort the increases. new from and from increases can, This as therefore, existing as as attention. every revenues to we businesses need get existing We as sale we drive is as existing driving customers existing But less. naturally there of new customer the is because want will we not is new spend that category of will So the total be share customers customers customers, diluted drive is bigger hard more to business really penetration, drive to business

Operator

next comes from Oliver Our Cowen. from Chen question

Unidentified Analyst

Jonna This is for Oliver.

year, slower helpful. wanted the growth. but your about it know customer bit get will expected, we than I And additional thinking around positive customer active trends, be you're any China be a will any around Just growth last but more seeing on how difficult you from comparisons color color to are Was forward? little thoughts active lapping helpful. you're just curious going

Michael Kliger

tolerance public This we predictions the logic, And are tough government, under policy course, Let second lockdowns me and really have life Chinese harsh then shuts Shanghai of The the where first at seen this moment. start quite of with is and down. requires in zero Beijing. the one. very that Shenzhen,

Shanghai So markets vast but market, for of big like driver a course, Beijing, are China is a sales. fashion

and shoes versus maturing how also short and is So and more COVID the of future particularly wardrobe we are for absolutely just and we our we share on the on as of strict consumer see necessity it the sort But us bags the for going more and way. almost the the is buying impossible of "buying" Chinese optimistic of term, focus market, lockdowns wardrobe spread Chinese building because develops. is accessories,

it And So from these QX, in medium challenges. term growth but despite seen China Mainland to short long saw to good takes nothing away remains the again, be term. we

active On better have seen Europe. in customer question challenges yes, face I the shows more number customer growth not growth, momentum an we would mean in -- the we active general the X-year of even rate good did but is if growth, showing

clearly, our that gain and customers headwind, we active then the some will the continue we will these market at existing can customers, of have factors, external against better weather an clearly headwinds we this top competitors produce sometimes moment. always But but not customer base, rely results is existing on very grow strong we strong to from particularly business driven that will because even with to by our the share we can growth. shows see so could So our and customer less

Unidentified Analyst

about to continue in end? see rebound you expect as the we in it you And the the in return quarter just year fourth to pick the and social US? are How up one follow-up. thinking a rate Do events

Michael Kliger

to social or the life about speak you Did return it's specifically return rate…

Unidentified Analyst

rates, to yes, business, the Return yes.

Michael Kliger

out way of the leading was US the the think I pandemic.

to capsules, and in everywhere a see we trend see the we And and the in continue see and for constant We some despite have else, drop quarters of good seen expansion. competitors, now. good business. as unique a willing to strong sense, anywhere even QX, our are in some drop customers long it when challenge as the a business Mytheresa, can't looking somewhere we when except -- but US willingness US, which item, we and as else, for there is yes, positioning And strong long spend local as get is we buy we there spend these are is is this that the constantly particular assured you're newness for in piece. how are enormous in unique ability that you as to this exclusive, special else,

it. article Barneys, there mean missed return the you ask has was Mytheresa for to put so us, if recently everything that, I And an in you mean I out.

Operator

Kunal Our next question UBS. comes from from Madhukar

Kunal Madhukar

A couple AOV, on I on has And a AOV third guide. the number of about fourth? trends in the the you and can to trend talk especially then expect quarter how One to with you questions there think in been gross could. if margins, regard it I

basis? that are get model guide, in to a margin the the we a the it a XP decline you model. decline underlying of like Q-over-Q Is the see where we the to from a benefit on to side, CPM So end model on or the Q-over-Q the CPM gross probably need seeing low should significant

Michael Kliger

margin gross the on gross should Martin, the think, I profit. you versus question take

I think to that's very important clarify.

Martin Beer

underlying in Kunal. and start in full considered with can no the We fiscal is in decline the gross profitability QX that, margin year. therefore, overall There

lower end as -- guide as is we guidance we and our the end towards guide So exactly it upgraded we the at lower ranges in our of the QX. profitability

stays CPM the same. in of being -- resulting the comparable exactly logic a profitable the very So

for and CPM we now have the planned. quarters couple of it a we when So shows as the results exact

And So the had. profit the AOV, is the on what absolute there's with gross saw in always the you in profit CPM that also overall our no in and margin gross maybe surprise line we guidance, and terms price AOV is shows, full the customer EURXXX at again, EURXXX now our million million existing LTM in in that grew, QX, and versus cohort LTM focus And strong on now our also behavior. we previous the year.

XX% the As Michael growth continued strength quarters also with in the that with in customers top in high the is and strong of outlined, growth line year-to-date the reflected last AOVs. then AOV, is and in

Operator

Geoffroy Bank Mendez America. from from of comes question next Our De

Geoffroy De Mendez

I have them. three of

So the for going first one, full your just year. back guidance to the

doing from QX. like think XX% means if So it has you're XX% QX I GMV in XX% that to growth, reaccelerate to something

underlying I are So little to of seeing was an after a is very suppose accelerating the U.S. element which bit said fair getting also think regions? still but I Europe better all in is Is the comp you it base, QX. assume good. easier, there performance you

us exactly like why a then the So that things you're types see starting into last comments and first if you could how on update you one second for on -- be exactly you're fiscal give lifestyle, percentage an XXXX. is us categories? of AOV give year was of in wondering question. new as GMV I that's your is that what on going on after much Then the the number the that you product is insights category and the And if would any where CPM. thing going like could it new

Michael Kliger

one me three. questions Let take and

the acceleration exactly and absolutely yes, an QX weeks give an are right. of us Mathematically, that in acceleration we of you're confidence were from So in QX at first where we QX. looking

there? as from level, customer looked have beauty, we your Vestiaire comment as in also This we Collective. are take service all can to fashion started we them, there particularly So let's is that where to to is their, requests This serve things at beautiful the absolutely skin and third -- right. care. question, from like we best elements at we Our is lifestyle and why is needs. intention are And offer a we of also resale category, why on the people why always, call lot the pop-up the live like luxury On tend going certain things along. QX, that desire our them wear that we beautiful of with There have as into customers the that got regardless and products. to this is expand with we

multi-brand. on offer with an we our X, focus number curation there's there, and Number high and out So editing. one, end. we Also enormous serve through products, lifestyle added the customers this

looking from to -- terms the value products products not item of so on at are of So and XXX in to with But sell $XX. X,XXX. to price ranges end this of is this course, we focus high product is ranges

will our product we encountered serve and category, taking groups. category. research all And customer it's question customer totally two. demand carry brands today the in bring lifestyle that to this them fashion qualities, So an based but which on Mytheresa we're has adjacent looking our really forward brands, are in that have because we take our Martin, focus many on to you it website also to not implicit

Martin Beer

the giving the will of because range so the you of increase And GMV. both in in CPM platform at on QX mathematically, and year information the end full sensitive guided one, as a not lower back the we question Geoffroy, and then QX seeing to GMV we're our lead is brands. always, share, also CPM CPM could addition, now are our in maybe your fiscal Yes, business share the the out then positive our of model model fee, models in this very offering effects XX.X%

share that in year We increasing 'XX. will an fiscal see

switch. 'XX therefore, we then As we then a now fiscal year that will transition half the fiscal and year continue. last we 'XX, be from brands about think of growth the have will And also time, said will year that

Operator

Generale. next from Sinha Abhinav Our Societe from comes question

Abhinav Sinha

side. from A my questions couple of

of challenges CPM. because on then surprise down. second that saw your revenue fixed, growth QX is which do in had the lower some 'XX? chain we in expect the target can that's a it's question we The and like So end that case, supply for more FY if slowed at QX, of you the why you guide now But

you had less when But initially, FY the don't model, XX% the introduced target precise for than that data. you know I 'XX. So was give

like way So you that or are like behind hint any on that? whether tracking it is

Michael Kliger

just a was in So last to that of and of external in what question, be shocks delay on I November shift issues fundamental in then, December. QX and a Europe what to saw the first deliveries, it. back precise, time think But course, we discussed we production stemming drove

so delivering are in the end of clearly the just looking And the drives acceleration, an confidence range. guidance Martin as described. acceleration we our at at That low

you Martin, want maybe, In take do to terms CPM, of that?

Martin Beer

said Yes, quarter. change last the CPM, there's the Abhinav in we what no from

their So CPM from to the we on traction shifting great satisfaction great also and side. brands see the

we XX% So will it's the And well the of continue below clear overall and full win-win will target year, of that. fiscal a we model. to see target

to the So ramp-up on where there's on traction no change chain have CPM supply sides well-tuned because in in change the work both it's a the integration process the or CPM IT.

everything So is expected. as

So there's no change.

Abhinav Sinha

side, right? the like partner terms be side, clear, to CapEx from the from not just in is my IT, And Mytheresa of

Michael Kliger

both do I sides. mean the most on OpEx the needed work We IT. or of but is work,

in brands, P&L. we for All the needed is the IT fully with like we our that have So reflected brands X CPM. now

Operator

follow-up Binetti Suisse. from Credit from have a Michael question We

Michael Binetti

you Most of in you some wants ones you we think today, rolling in the I for much. same of Is CPM the that profitability -- about today about about CPM answered, ones in. those Would the of that brands, been said magnitude round forward model the on half try that said on the have I metrics. so the But my point, think you brands the on next apologize total since to as can to already the model of be model. mind that us influence different X just back so profitability the have does the jumping updating questions on in lines

Michael Kliger

CPM to now happy believe moment. but of model, roughly estimate what half Yes, the again, we we address we -- the Yes, are those bigger at roughly, will brands in end it. started are But join that many the ones. how

seen So to the that you will on be we to the the additional that model will of that size this have -- can come CPM so expect far. not volumes

Michael Binetti

that in recently. the you markets in prepared comment, think And seen then some you demand, please? remarks by promotional fine-tuning Would break out said with with some just that seeing what consumer not mind driven you you I saw you're players intensity, have which was growth

Michael Kliger

over It's seen of saw of We examples pricing starts and the have compared market weeks, seen of those in pandemic kind Korea back last characteristics couple have we some quoted the which some some to is the quite for early. before we the of, in US, to aggressive early the that sale the phase I pandemic. coming

to So we seems pandemic this luckily or what some tactics, is nothing players. is is slowly but with. at for see some it back to. is not fortunately have we we that deal The these coming used are in of it it created -- This that a pause slowly least it

Michael Binetti

for assumption Has all? competitive as promotional fourth set impacted the quarter seen at underlying change made that the you've levels in you've

Michael Kliger

observed margin this now in think our does this, promotional fifth product stability we I our its on mean margin. I year on and not is intensity No. but change stance

environment, with with So our not customer the drive and our and merchandise products, particularly exclusive this we be regardless base changed. to business will of continue special drive

Operator

We have questions. no further

to your like for concluded. We'd now has participation. call thank today's you So

now may your disconnect you. Thank You lines.