Luxury e-tailer Mytheresa has reported positive results for the third quarter, demonstrating progress despite challenges in the volatile geopolitical landscape. Gross merchandise value (GMV) increased by 13.2% year-on-year during Q3 and by 67% over the past two years. The company also achieved stable profitability and has high expectations for the full fiscal year.

In Q3, Mytheresa achieved a GMV of €186.6 million, while net sales rose by 2.9% to €169.5 million. The slower growth in net sales compared to GMV was due to planned switches of brands to the Curated Platform Model (CPM) and the subsequent effect of recording the platform fee as net sales.

One key metric that highlights Mytheresa’s success is the growth in active customers, which reached 21.6%. The company’s gross profit margin also saw a significant increase of 490 basis points to 48.8%, mainly driven by an increase in sales from the CPM, which generates a 100% gross margin, and a continued focus on full-price sales. Gross profit rose by 14.4% to €82.8 million, and adjusted net income rose to €5.6 million from €4.5 million.

However, there were some negative aspects to the results. Adjusted operating income was €8 million, compared to €9.1 million in the same period last year. Adjusted EBITDA remained “stable” at €10.2 million, but it was slightly down from €11.1 million a year earlier.

The US market was the standout for Mytheresa during this period, with GMV growth of 41.6%. This growth helped increase the US market’s share of total GMV to 16.4%. Mytheresa also organized high-impact top customer events in Europe, the Middle East, and the US, further establishing its brand awareness and trust with Chinese consumers by opening the Mytheresa flagship store on JD.com.

CEO Michael Kliger expressed his satisfaction with the company’s performance, emphasizing Mytheresa’s strength despite external challenges. He highlighted the double-digit GMV growth, healthy expansion of the customer base, and the increased strength of the top customer base. Kliger also noted the strong growth in the US, particularly in warmer weather states like Florida and Texas.

Looking ahead, Kliger believes that the luxury sector has consistently proven to be resilient, despite uncertainties in the macroeconomic environment. He expressed confidence in Mytheresa’s potential for profitable growth in both the short and long term, as the shift towards online luxury shopping continues to drive growth.

For the full fiscal year ending June 30, Mytheresa expects to achieve its guidance, although it anticipates landing on the lower end of the given ranges. The projected GMV is expected to be in the range of €755 million to €775 million, representing a 23% to 26% growth. Net sales are projected to be between €700 million and €720 million. Gross profit is expected to range between €350 million and €365 million, indicating a 22% to 27% growth. Lastly, the adjusted EBITDA margin is expected to fall between 9% and 10%.

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