Mytheresa Reports Strong Growth Amid Challenges for Yoox-Net-a-Porter
Mytheresa, the German luxury e-commerce platform, has reported impressive financial results for the final quarter of its fiscal year ending June 2025. The company’s net sales surged by 12% year-over-year, reaching €249 million (approximately $292 million). This growth is complemented by a remarkable 52% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which climbed to €16 million during the same period.
Driving Factors Behind Mytheresa’s Success
The success of Mytheresa can be attributed to its strategic focus on exclusive capsule collections and unique customer experiences. Collaborations with high-profile brands such as Dolce & Gabbana and Alaïa have allowed Mytheresa to offer products that are not readily available elsewhere. Additionally, the company has cultivated a loyal customer base by providing exclusive in-person experiences that enhance brand engagement.
The gross merchandise volume, which reflects sales conducted through its platforms, saw a notable 16% increase from top spenders in the last quarter. Following the earnings announcement, the stock price of Mytheresa’s parent company, LuxExperience, rose by over 17% in pre-market trading, signaling investor confidence in the brand’s trajectory.
Challenges at Yoox-Net-a-Porter
While Mytheresa thrives, LuxExperience faces significant challenges with its recent acquisition of Yoox-Net-a-Porter, which was finalized in April. The luxury e-commerce platform, along with its menswear counterpart Mr Porter, experienced a 9% decline in sales, totaling €255 million in the final quarter of fiscal 2025. Michael Kliger, the group’s chief executive, attributed this downturn to insufficient marketing investments and a lack of appealing new merchandise.
The off-price segments, including Yoox and The Outnet, also reported a 17% drop in sales, amounting to €159 million. Kliger expressed concerns that revenue for Net-a-Porter and Mr Porter may continue to decline in the near future, necessitating a comprehensive turnaround strategy.
Strategic Overhaul and Leadership Changes
In response to these challenges, LuxExperience has initiated a significant restructuring of its operations. The company appointed Heather Kaminetsky to lead Net-a-Porter and Toby Bateman, a key figure in the launch of Mr Porter, to oversee the menswear site. Their primary focus will be on attracting luxury customers through editorial inspiration and brand discovery, as well as emphasizing full-price selling.
In September, LuxExperience announced layoffs at Net-a-Porter and Mr Porter as part of its strategy to merge operations with Mytheresa’s existing infrastructure. This consolidation aims to streamline processes and enhance overall efficiency.
Long-Term Goals and Market Outlook
LuxExperience has set ambitious targets, aiming for the entire group to achieve €4 billion in annual revenue by 2030. For the fiscal year ending June 2025, total revenue reached €2.7 billion. However, Martin Beers, the finance chief, cautioned that 2026 is expected to be a “transition year.” This period will involve navigating tariff uncertainties and recalibrating the buying and marketing strategies for Net-a-Porter and Mr Porter.
The luxury e-commerce landscape is evolving rapidly, and companies must adapt to changing consumer preferences and market dynamics. Mytheresa’s success highlights the importance of exclusivity and customer engagement in driving sales, while the challenges faced by Yoox-Net-a-Porter underscore the need for strategic investment and innovation.
Conclusion
As Mytheresa continues to flourish, the contrasting fortunes of Yoox-Net-a-Porter serve as a reminder of the complexities within the luxury e-commerce sector. The ability to pivot and adapt to market demands will be crucial for LuxExperience as it seeks to unify its brands and achieve its long-term revenue goals. The coming years will be pivotal in determining whether the company can successfully navigate these challenges and capitalize on the growing luxury market.
