MYTE - Mytheresa stock tumbles on promotions prompt margin compression

2023-05-10 14:15:37 ET

Mytheresa ( NYSE: MYTE ) shares slipped over 5% on Wednesday after posting a disappointing fiscal third quarter that included an unexpected loss.

The German luxury e-commerce company reported a €0.06 per share loss, missing the Street consensus by $0.07. A 17.3% rise in revenue year over year to €198.9M ($217.2M), meanwhile, narrowly exceeded the analyst consensus.

Gross Profit margin of 45.6% in the quarter reflected a 320 basis point contraction, which the company blamed on a promotional environment in retail and e-commerce. Inventories were slashed to $230.14M from $325.87M in the year prior.

“Our margin has been impacted by strong promotional intensity of many competitors in Q3 but we deliver profitable growth. We remain very much focused on our strategy of best customer experience and high full-price share yielding 36.8% top customer GMV growth in Q3,” CEO Michael Kliger commented.

He also highlighted a number of initiatives for the company, including a designer program in China in order to seize on the nation’s booming luxury market. The company’s launch in Shanghai has garnered “significant press coverage for Mytheresa in China,” according to the company.

Moving forward, the company GMV in the range of €845M to €860M and net sales in the range of €750M to €765M. Analysts had €762.5M in revenue for the full year.

Shares of Mytheresa ( MYTE ) moved 6.04% lower in afternoon trading on Wednesday, diving to a new all-time low.

While analysts retain a Buy rating , Seeking Alpha’s Quant team shifted to Sell in early 2023 .

For further details see: