Mytheresa Reaps Rewards from Catering to the Ultra-Wealthy

Mytheresa.com, an online retailer specializing in high-end products, is outperforming its competitors and defying the recent downturn in the luxury sector. The company’s success can be attributed to its strategic emphasis on catering to the affluent clientele worldwide.

“This customer is still spending because fortunately the financial problems we’ve had so far haven’t really affected their spending outlook,” Mytheresa CEO Michael Kliger said in an interview. Each of these buyers spends $100,000 or more on the site annually.

Sales to “aspirational” luxury customers who increased their spending during the pandemic for extra savings have retreated, particularly in the United States. “This business is still slow,” Kliger added.

Mytheresa, based in Aschheim, Germany, has increased its share of top consumers by offering additional categories, including luxury children’s clothing and homewares. It also hosts more exclusive events, such as a private cocktail reception hosted by Domenico Dolce and Stefano Gabbana of Dolce & Gabbana fame at their home in Portofino, Italy.

Mytheresa’s biggest customers represent about 3 percent of its 1 million customers but account for 39 percent of its business, the company said Thursday in its quarterly report. That is 33 percent more than in 2021.

Mytheresa estimates revenue to grow from 8% to 13% in the fiscal year ending June 30, 2024, and sees adjusted earnings before interest, taxes, depreciation and amortization of 3-5%. Shares rose 16% in New York trading as of 11:47 a.m. ET.

That compares with rival Farfetch Ltd., which last month cut its full-year forecasts and reported weaker-than-expected second-quarter revenue. Shares fell as much as 43%, the lowest intraday level on record.

Most of Mytheresa’s top consumers are high-powered business executives who are short on time and don’t want to browse endless outfits online, Kliger said. Instead, they want a curated selection. “Inspiration can’t be made from oversupplying a product,” he said. “Sixty dresses can still be inspiring – 200 is tiring.”