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Sources are buzzing that luxury e-commerce site Mytheresa is closing in on an acquisition of the troubled Yoox Net-a-porter e-commerce operation, owned by Compagnie Financière Richemont.
Officials of Mytheresa did not respond to requests for comment Thursday.
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Richemont — which is currently in a quiet period and will report its interim results for fiscal 2024-25 on Nov. 8 — also did not return a request for comment at press time.
YNAP is the parent of Yoox and Net-a-porter, both competitors to Mytheresa.
Munich-based Mytheresa, which is listed on the New York Stock Exchange, is a leader in selling designer and upscale fashion online. The company is on more stable footing than Yoox or Net-a-porter and has managed to transcend the malaise permeating much of the luxury sector. Recently, Mytheresa reported top- and bottom-line progress for its fourth quarter ended June 30 and signaled confidence for the future.
“There’s more momentum going in the new fiscal year,” Michael Kliger, Mytheresa’s chief executive officer, recently told WWD.
Kliger said the company was projecting 7 to 13 percent net sales growth and 3 to 5 percent adjusted EBITDA margin for fiscal 2025. “We do see continued uncertainties and macro headwinds, but what we also see is that the U.S. is quite strong for us.”
Kliger said Mytheresa’s second half benefited from the difficulties experienced by competitors, particularly those operating luxury websites. “Matches went out of business. Farfetch switched ownership and has been cutting costs. Net-a-porter continues to struggle,” he said.
Mytheresa narrowed its bottom-line loss to 3.6 million euros in its fiscal fourth quarter, which ended June 30, compared with a loss of 5.4 million euros a year earlier. Adjusted net income in the fiscal fourth quarter grew to 4.5 million euros, from 1.1 million euros in the year-ago period. The adjustments include one-time effects such as share-based-compensation, transaction-related costs and legal costs.
In its fiscal year, Mytheresa’s adjusted net income came to 7.7 million euros, compared with 18.4 million euros in fiscal 2023. Net sales increased 9.8 percent to 840.9 million euros from 766 million euros in fiscal 2023. Gross merchandise value grew 7.1 percent to 913.6 million euros.
It’s not quite a David and Goliath scenario, but Mytheresa’s annual volume is less than half of the $2 billion in volume generated by YNAP, according to The Fashion Law website, which posted a report that a deal was nearing on Thursday.