MyTheresa, an online luxury fashion retailer, is reportedly preparing to go public on the New York Stock Exchange (NYSE). Owned by Neiman Marcus, MyTheresa offers clothing from renowned fashion brands including Prada, Gucci, Burberry, and Dolce&Gabbana. Neiman Marcus is partnering with Morgan Stanley to facilitate the listing, which is expected to occur as early as April.

Sources suggest that the potential initial public offering (IPO) could value MyTheresa at approximately $500 million. While other similar companies like Zalando, Global Fashion, and Asos are listed in Europe, MyTheresa has chosen the NYSE for its listing, following the successful IPOs of online fashion retailers Farfetch and The RealReal.

This move reflects a growing trend in which private equity firms are separating prosperous retail assets from struggling parent companies. For example, last year BC Partners extracted Chewy Inc. from PetSmart, and TPG-owned J Crew is considering an IPO for its Madewell brand.

Nevertheless, the IPO is not without controversy. Neiman Marcus and Ares, its owner, are currently facing a lawsuit in the New York state Supreme Court regarding a debt restructuring involving MyTheresa. Creditors argue that the restructuring deprived them of the online retailer’s value.

MyTheresa was initially established as a store called Theresa in Munich, Germany in 1987. In 2006, it launched its online platform. Neiman Marcus acquired the business in 2014 and announced in April that it would explore strategic alternatives for MyTheresa to address its significant debt levels. Since 2013, Neiman Marcus has been under the ownership of Ares and the Canada Pension Plan Investment Board.

Regarding financial performance, MyTheresa reported operative earnings before interest, tax, depreciation, and amortization of 15.2 million euros on sales of 272 million euros for the nine months ended March 31, 2019, according to a filing from Neiman Marcus. In the fiscal year 2018/19, the company posted a net profit of 21 million euros on sales of 370 million euros, as stated in a regulatory filing in Germany.

Overall, the NYSE listing plans for MyTheresa demonstrate the growing trend of luxury fashion retailers seeking opportunities in robust equity markets. While the IPO may encounter some challenges, it holds the potential to generate significant value for the company and its stakeholders.

Useful links:
MyTheresa website
NYSE website