Mytheresa Neiman Marcus Unit valued at $ 3.08 billion in NYSE debate

Mytheresa American investment shares opened today at $ 35.85 at the top of the company’s range between $ 24 and $ 26, which on Tuesday was revised from the original $ 16 to $ 18 per share, giving a $ 3.08 billion market valuation. German online luxury retailer.

The enthusiastic reception was a testament to Mytheresa’s commitment to a carefully selected roster of 200 luxury brands featuring exclusive capsule collections, collaboration with partners, 72-hour free delivery to 133 country, and new forms of advertising such as music videos and digital games. .

“As we reached investors around the world, it was very encouraging,” Michael Kliger, CEO of Mytheresa, told me. “They just didn’t like it [overall] online marketplace, which was three times as many luxury shops moving online, they also understood that we were able to carve out a unique situation with a focus on the top end of the best brands and the best messengers , which, of course, translates to high basket size, high user retention and high user cost. “

Rising evidence that multi-brand luxury platforms in the U.S. have a promising growth path includes fashion player Farfetch, which less than a year ago traded at $ 14, and now It had a market potential of $ 2.09 billion, and closed today at $ 62.02 on the NYSE.

Kliger said multi-brand customers are usually different genders of customers. “Some customers like mono badges,” he said. “We create desire not least because we can launch capsules and discounts. For example, Ricardo Tisci, chief creative officer of Burberry Group in June, launched a capsule collection on Mytheresa, and last week, a special version of one of Bottega Veneta’s most popular handbags was launched.

“It surprised them,” Kliger said of the Burberry styles. “That is just our command.” In the Bottega introduction, Kliger said, “This is where we see our commitment to the customer who owns a large wardrobe and announced this. ”

[Investors] understand that we are a player in a growing and profitable e-commerce sector, so the move slowed down and led to the decision to re-file at $ 24 to $ 26 per share. ”

However, Mytheresa’s growth in the US is not without its challenges. Not as well-known as Net-a-Porter or as well-funded as Farfetch, its shares got a big chunk in November when it was announced as Alibaba, the largest online marketplace in the world. world, and Cartier and Net-a-Porter’s parent Richemont each invested $ 300 million in the company. In addition, the construction costs of Mytheresa users are reportedly more than three times that of Farfetch, which has a much larger range.

“Part of the impetus for the IPO is to raise awareness in the US about Mytheresa,” Kliger acknowledged. “Today, the USA makes up 10% of our revenue. Our brand awareness is low in the US, and we see the IPO as a catalyst. We’ve seen with other companies that IPOs are raising brand awareness because of [our clients] they are financially wealthy and will follow the money we raise. “

The resources will be allocated to organize more events to reach out “into the amazing customer base that exists when the US When customers find us,” Kliger said they are not disappointed. because “we have very high customer satisfaction scores.”

At its offer price Mytheresa $ 2.2 million represented a significant jump in valuation estimates in recent years. For the private equality group Ares Management

ARES
, Mytheresa ‘s main shareholder.

Neiman Marcus, who owns Ares and Canada pension plan CPPIB, in 2014 bought Mytheresa for $ 200 million. The Munich-based online retailer has become the subject of controversy in a complex debt restructuring as the Neiman division store business collapsed under the pressure of large debts, and the pressure of slow performance according to a statement at the main center his new home at Hudson Yards in Manhattan, which has since been closed.

Ares in 2018 had moved Mytheresa to remove him from the clutches of creditors Neiman, who did not sit well with the group. Ares and CPPIB last year agreed to convert $ 172 million of their Mytheresa interest into unsecured creditors after one, Marble Ridge Capitol, approached the bankruptcy court to allow a review of the deal original movement. But the founder of Marble Ridge was charged with fraud and obstruction of justice, and Ares and CPPIB were able to show that the applications they received from bankers in 2019 did not exceed $ 500 million.

Kliger showed luxury customer preferences, drawing differences between full-price and resale consumers. “It’s hard to put customers in established segments,” he said. “At one end of the luxury market is a customer who wants this one bag, and who buys it when she finally finds it. We are [business] which is 40 percent ready to consume. That shows that while our customer may also be buying branded bags, she is actually investing in ready-made clothing, which has a much shorter lifespan. The resale market is heavily focused on these iconic pieces. We are seeing this offer gain more and more traction. It is clear that we are engaging with our customers, but there is more duplication with the occasional luxury customer with the additional purchase. ”

Kliger said ready to spend for spring / summer 2021 is doing well. “Already, we have strong sales,” he said. “Consumers are enthusiastic about the latest trends. They may be looking for bags on a resale platform if they lose style.

“Resale and rental markets and offers – that’s the world of the consumer today,” Kliger said. “We look at where our customer is also spending their luxury dollars. It’s Net-a-Porter, or Matchesfashion, or even Farfetch. It is never black and white. Sometimes they spend here, and sometimes they spend there. We get new styles sourced directly from the brands. We’re quickly kept to a luxury focus, and that translates to a high-end customer. The average basket is 600 euros. ”

Kliger said Mytheresa ‘s ability to diagnose coronavirus pandemic is an indication of her strength and long – term viability. “It was a big, exciting event around the world, and it impacted on our provision. The driver of our business is this form of long-term move of brick and mortar to online, ”said Kliger, noting that Mytheresa operates two corporate stores in Munich. “When I started at Mytheresa, 5% of total sales were online, and it went from 12% to 30%.”

Nonetheless, the pandemic has created various shifts to the long-term trend toward more online use. The first shock was when the pandemic hit Europe, especially Italy, which is a major production base for manufacturing, Kliger said, “For nearly eight weeks in the autumn and in winter 2020, there were delays and supply chain issues, but in spring / summer 2021, delivery was adequate, and brands were seized. ”

“We went into the second lockout in the second half, and in December, again we went into a lockout,” Kliger said. “In the second half of the 2020 calendar, we saw excellent sales and management of 22 to 26 per cent. In the last two months, we were up 30 percent, benefiting from the fact that department stores were closed. ”

On a more granular level, consumer preferences have been changing. “We saw a move towards home and very comfortable clothing,” said Kliger, “There was no decline in overall wear, but, to some extent, a shift. Products like gowns and cocktail dresses, of course, suffered. Hopefully there will be an inflection again. As we move back to buying bricks and mortar, more people will go back to their favorite vendors, and we expect a pent-up demand with weddings, birthday parties and Mitzvah’s Bar. was canceled. This could be a very big social calendar in 2021. ”

Kliger said Mytheresa continued to work with major luxury brands to offer unparalleled offerings to their clients. “This is where we see our responsibility to the customer who has a large wardrobe and who has pointed this out or said I would like another cashmere sweater,” he said. “The journey will begin like that. Mytheresa is a reserved platform, so it’s not going to fight dot.coms or other collections with hundreds of thousands of results. ”

Kliger did not refuse to grow Mytheresa’s own product list. “This is a journey,” he said. “We launched kids a year ago, and we started men’s clothing and skiing. I believe there is more in the consumption of our customer’s luxury lifestyle. We always want to be relevant, but not just adding more. ”