MyTeresa at BofA Conference: Strategic Growth and Acquisition Plans

On Tuesday, 11 March 2025, MyTeresa (NYSE: MYTE) presented at the BofA Securities Consumer and Retail Conference 2025. The company’s CFO, Martin, outlined a strategic plan focused on growth through acquisition and operational excellence. While MyTeresa anticipates significant market cap expansion, potential challenges such as tariffs remain.

Key Takeaways

• MyTeresa aims to triple its market cap through the acquisition of YOOX NET-A-PORTER.
• The company targets an 8% adjusted EBITDA margin in the medium term.
• MyTeresa’s revenue grew 12% in the fourth quarter, surpassing the industry average.
• The luxury market’s healthier state benefits MyTeresa’s growth strategy.
• Tariffs pose a risk, but the luxury market’s low price elasticity offers some protection.

Financial Results

• MyTeresa reported a 12% revenue growth in the fourth quarter, outpacing the 2% industry average.
• The first half of the fiscal year showed a 10% revenue increase.
• Emphasis on full-price sales in Q2 and Q4 contributed to stronger performance.

Operational Updates

• The acquisition of YOOX NET-A-PORTER is expected to close soon, expanding MyTeresa from a $1 billion to a $3 billion company.
• MyTeresa operates in 230 countries, focusing on the top 250 women’s brands.
• The company maintains high operational standards, reflected in its superior Net Promoter Score.

Future Outlook

• MyTeresa plans to preserve the distinct identities of MyTeresa and Net-a-Porter post-acquisition.
• Synergies in IT and operations will be optimized while maintaining separate storefronts and buying teams.
• The shift to a curated platform model will be gradual and brand-driven.

Industry Outlook

• The luxury industry is experiencing less excess inventory and promotional intensity.
• MyTeresa benefits from brand performance polarization due to its diversified portfolio.
• A focus on top customers provides resilience against market fluctuations.

Q&A Highlights

• MyTeresa differentiates itself with a focus on high-end, luxury brands and a wardrobe-building customer base.
• Customer loyalty is driven by curated edits, brand selection, and operational excellence.
• New customers become profitable within their first year.
• The ready-to-wear category accounts for over 55% of sales.

In conclusion, MyTeresa’s strategic initiatives position it for significant growth, though challenges like tariffs remain. For a deeper dive, refer to the full transcript below.

Full transcript - BofA Securities Consumer and Retail Conference 2025:

Unidentified speaker, Bank of America: Well, thank you everyone for joining us here at the Bank of America Consumer conference in Miami. I’m very pleased to have Martin be with us from MyTeresa, CFO, with me on stage. Martin, last time we were together was actually at our European Consumer Conference in Paris in November, and you were pitching to me at the time, the very strong investment thesis for MyTeresa. I was wondering for the investors in the room, if you wouldn’t mind kind of be pitching them the equity story and the investment thesis of the company and the stock from here.

Martin, CFO, MyTeresa: Yes. Thanks, actually. Happy to do so. I mean, let’s start with the numbers and maybe, I don’t know exactly what I pitched last time with you, but let’s start with the numbers on the equity story. And the equity story is if you relate the share price to the share price potential.

And Myetresa is one of the stocks has a very high potential for an increase in the share price. So end of next month, we will hopefully close the acquisition and move from a 1,000,000,000 company to a 3,000,000,000 company. And with that, we will obviously target the 8% adjusted EBITDA margin medium term that we have, and then you can do the math by yourself. The EBITDA will be $240,000,000 with applying a certain growth multiple for for obviously a growth company as my Teresa. You you come to, you know, market cap over 3,000,000,000.

And if you relate that to the market cap of today at around 800,000,000, they clearly see a tripling of the share price in the market cap. And I think this was what I indicated the last time we saw each other. And it’s driven by more the fundamentals, and that’s why the equity story and the growth story did not change. If you look at the core business, that is MyTeresa, we see an ever increasing brand support from the luxury brands doing close cooperations with us, exclusive money can buy experiences, cosponsored events. Every quarter for the last quarters, we have an increasing number and caliber of brands that want to do collaborations with Mitrice and increasing the digital visibility towards our customers.

And also on the customer side, very strong improvement, not only you last quarter we reported a plus 12% top line growth. But if you look at the customer KPIs, they all look very healthy, increasing GMV per top customer, increasing GMV for all customers, underlying increasing AOV and also improving the profitability level. And especially in the current situation, that is quite remarkable, also driven by a much healthier state of the luxury industry with less access inventory in the market, less promotional intensity, and a lot and you saw that in the press, a lot of struggling competitors that help us clearly position us as a clear winner. And this is a core Mitrice element and obviously with the acquisition of YOOX NET A PORTER as a combined group, being the number one global player in this online multi brand luxury, we clearly see also for the combined group to embark on this route for 8% adjusted EBITDA profitability in the medium term. And that’s why not only for the numbers it adds up, but also from the underlying trends and drivers that keep fueling the MyTree success story.

Unidentified speaker, Bank of America: Thank you. Thank you for those opening remarks. Perfect intro to the story. Maybe if we could take a little bit of a step back. Obviously, your fourth quarter results very solid relative to what we saw elsewhere in the industry.

I think if we look at the listed luxury companies, they were growing revenues in that fourth quarter around 2%. And as you rightly point out, by Theresa delivering double digit growth in that period. If we look at what’s happened since the fourth quarter, I think that on a lot of the data that we track, there is kind of no real indication that the industry is seeing sequential improvement from here. Actually, in fact, a little bit of a softening coming through in the first quarter versus fourth quarter momentum. Can you talk to kind of how you’re seeing the industry dynamics play out in this early part of the year?

Martin, CFO, MyTeresa: I mean, the industry dynamics, as I just mentioned, is much healthier than before. So clearly, if you look at the promotional intensity, if you look at customer sentiment, especially on the high end side, on the top customer side, which Mitrice clearly is focusing on very strong. And you mentioned the 2% on average. Obviously, we all see a high, polarization on the brand side. So there are some brands that are struggling and there are on the other side also some brands that are growing double digit growth.

So this polarization on the brand side obviously helps somebody like Mitrice, who is kind of a ETF and luxury. So we can balance the brand portfolio, working together on the women’s side with about two fifty brands and also delivering in two thirty countries. So we can grow in regions that are now set up for growth much more than other regions, where it’s more difficult and also focus on brands that are really performing well and can increase our performance as well. Yeah, Q4 was a great quarter also for Matrice, 12% top line growth, first half of the fiscal year 10% growth. And we see a continuation of those trends.

I mean obviously, the quarter January, February, March is our third fiscal year quarter is always a bit weaker than the preceding quarter and the quarter afterwards. So Q2 and Q4, which are usually stronger quarters, because they are more having a fully delivered season and focus on full price. That’s why those quarters are stronger. But the overall advantage in the industry and also for a player like my Theresa is in the focus on the tough customer side. The tough customer side, which is less affected by a weakening or a softer customer sentiment, has a higher resilience in really fulfilling their needs of having attractive luxury shopping, wanting to position themselves there.

So overall, very, very strong and much healthier state of the industry than one year or two years ago.

Unidentified speaker, Bank of America: And you obviously made the differential between the performance of the top customers versus the rest. I was wondering if there’s anything to call out from a, like, a regional or a nationality perspective that you also see within the demand dynamics?

Martin, CFO, MyTeresa: It’s, the share of top customers and standard customers for my Teresa worldwide is very similar. So it’s not because we’re a European based company that the share of top customers to standard customers is significantly different in Europe versus U. S. Or rest of world. But obviously, there are differences in the growth between the regions.

There are regions where due to several reasons, for example, Germany with the election, uncertainty was a bit weaker in the last quarters and other regions obviously Middle East, U. S, Canada, Singapore are very strong. So the overall growth can be leveraged through different regions and our focus on top customers really plays out.

Unidentified speaker, Bank of America: And you mentioned before the health of the industry is better than what it has been previously. But can you talk a little bit more about the level of promotional activity that exists at Matreresa and also the level of promotional activity that you’re seeing within the luxury industry more broadly?

Martin, CFO, MyTeresa: That’s exactly the, what I call the better state of the industry. Because with having less excess inventory in the market, there’s also less need or willingness to embark on heavy promotional activities by competitors, by other retailers or by the brands themselves. So we clearly see a return to stronger full price, also enabling stronger sell through rates for all those seasons. And that plays then or is a key ingredient of our healthier state of the industry. So the excess inventory levels balancing out and you see that the players are in a much better state today.

So it’s

Unidentified speaker, Bank of America: fair to say that the inventory in the channel is cleaner than it has been?

Martin, CFO, MyTeresa: Yes, exactly. Yes. Okay.

Unidentified speaker: Thanks. Just taking a bit of a step back, can you remember us what differentiates Mytherisa from your competitors, and what makes it the go to platform for curated luxury?

Martin, CFO, MyTeresa: Yeah. I mean, the key differentiation of MyTeresa is that we always stay true to really focusing on the high end, on really true luxury with the focus of the brands. Some competitors have 500 brands, other have 800 brands. We really focus on the true luxury brands and also the top customer that is a wardrobe building customer that does not save money for a back by every two years, but is really a wardrobe building customer, right, focusing on ready to wear. And that enables the customer to come ten, fifteen times per year and spending significant amounts on ready to wear.

And this is a key and unique focus of MyTeresa with our ready to wear share significantly above 50% and then and have a customer, a very strong loyal top customer that comes back and back with a high retention without requiring additional promotions or additional marketing spend.

Unidentified speaker: I guess as a follow-up, can you just explain us a little bit maybe the differences in business models between My Therizza on the one hand and Net a Porter on the other hand, obviously, concerning the upcoming acquisition?

Martin, CFO, MyTeresa: I mean, Net a Porter is our biggest competitor. So from a positioning, it is very similar to my Teresa on the curated luxury. So not a marketplace, but really catering to top customers, focusing on top customers. But obviously, and this is then even better felt for the focused customers, the go to market strategy is a bit different. In Nuance’s, MyTeresa has a higher share of really established well known luxury brands.

Net a Porter also has a share of up and coming new brands, has also more content driven go to market strategy on their platform. So overall, it is very comparable. But in if you really compare why a customer shops at Mitrice or why they shop at Net A Porter, they will clearly explain the differences that the Net A Porter is has a different tonality, has a different go to market strategy than my Teresa. And that’s why also in the upcoming acquisition, we, after closing, want to keep the storefront separate. We want to keep the Net A Porter DNA of having a comparable business model, but a complementary as well.

So really keeping the storefronts separate also with separate buying teams and on the marketing side, but in the back end on IT and operations, then craft the synergies and optimize the overall go to market strategy.

Unidentified speaker: Fantastic. And then can you just explain us a little bit what the secret is behind Mytheresa’s high customer loyalty? How do you nurture loyalty in a competitive market?

Martin, CFO, MyTeresa: I mean, the, it starts with everything that we do in our business model. So the core essence of why a top customer comes to Mitresa is also our curated edit. So it is our brand selection and our product selection that they find on the website. So there’s a high emotional attachment of our top customers to the brand, to what we do. This is the core essence and that’s why, especially the top customers that are a wardrobe building ready to wear focused customers want to see and have access to this merchandise.

And with our close brand relationships that even more every quarter and every month do collaborations with us on exclusives and capsules that enables the customer to every week discover something new, something exclusive on our website. And therefore fuels this curated edit on the website. And therefore, for a top customer, it is a great discovery on the MyTeresa website. And don’t forget, MyTeresa is not a transactional platform. It is really an emotional attachment that the customers have with MyTeresa.

It is an inspiration driven by it is more an event driven by not so much a focused targeted buy where I exactly know the product and want to shop for the best price. This is not why what the customer comes to my Teresa. And therefore, with the core essence on the product side is a key ingredient. The second key ingredient is the operational excellence. We are the best operator in the industry, highest Net Promoter Score, and those, especially the top customers demand excellent service.

And they look at that speed of delivery and quality of delivery. And we get a lot of positive feedback on the speed and quality of the delivery. And they are obviously, as you said, this is the secret sauce of MyTeresa to have built and continue to build this loyal top customer base, which is highly profitable and which comes back and which comes back with a high degree of loyalty with low level of promotional promotions and low level of marketing. And that’s why we have customers who shop with us two years or longer, we have 100% net sales retention. So every year I build a existing customer cohort on top, which expands my very loyal top customer base.

Right now, 4% of my customers make 40% of revenues. At the IPO, I think four years ago, it was 332%. So increasing top customer share, that also isolates me a bit from the current aspirational customer weakness and the overall market sentiment. And that clearly differentiates us from the competition to have such a continuous focus on this top customer and such a track record of delivering to it. So the DNA of Mitrice was always this.

There was never a hockey stick. It was always highly profitable business and a strong focus on this top customer.

Unidentified speaker: I guess just maybe as a follow-up on this and try to finish up the business model discussion. How long does it take you to make a customer profitable from scratch? And what’s the average cost per customer or for customer acquisition?

Martin, CFO, MyTeresa: I mean, the when we look at the LTV over CAC analysis and look at the different customer cohort performance, the customer is in the first year profitable. And obviously, the pure customer acquisition cost is per se not a KPI because you always have to relate it to the quality of the customer. And therefore, the implicit or expected lifetime value that this customer will bring. So, obviously, we, we, with optimizing our building bidding algorithm and looking at acquiring top customers, we obviously focus more and more of acquiring the high potential of customers high potential customer that obviously have then the highest LTV over CAC. And usually, after two years, that it’s clear that this customer is a top customer, not because they get richer or they develop, but it’s it’s they experience the MyTeresa platform.

They really love the service. They love every aspect, and then they shift sale to to towards my Teresa.

Unidentified speaker, Bank of America: And we might pause there to see if there are any questions from the room.

Martin, CFO, MyTeresa: So many hand raisers.

Unidentified speaker, Bank of America: Otherwise, I can follow-up with the question on my side. I was just wondering, over the last couple of years, one of the key stories that have existed in, the online arena has been this idea of, like, shift from wholesale to e concession. I was wondering where are we in that journey and if you still see, a lot of the brands that you work with continuing to kind of prioritize the desire to have e concessions over sell wholesale. If you can remind us what percentage of your revenues or profit comes from that concession model rather than wholesale, and also how do the economics look today and if they’ve evolved at all?

Martin, CFO, MyTeresa: Yes. No, happy to speak to that. Well, first of all, our curated platform model that we also engage with the brands is not a concession model per se, because the for the customer, all the positive ingredients of the wholesale model and all of the MyTeresa go to market strategy stay the same. So even though I’m MyTeresa is not the financial owner of the product, MyTeresa still selects, still curates, still decides which product to put on the platform. So it’s not the brand, it is us.

And the brand delivers, so to say, the seasonal selection, the seasonal buy to our warehouse. So it’s also not a drop shipment model. And that enables us to fully own and fully manage the value chain to the customer and deliver the seamless customer experience that is the key element of the My Tree, so go to market strategy. And that therefore for the customer, it is completely not visible or not felt whether this product is a wholesale product or whether this product is a curated platform model product. But, the curated platform model as we hook up our IT with the supply chain IT of the brand has additional benefits also for the for Matrice on having in season replenishment.

So every week, we get, in season replenishment of products that are, that we run out of certain size, color or style. And that also helps on boosting sale with that brand. Obviously, it’s a different cash cycle. We don’t buy the inventory. We pay the brand when the customer pays us.

So it’s a model, but yes, the benefit for the brand is that the brand keeps owning either financial owner of the inventory and clear the decision maker on all pricing. So it is a different logic than the wholesale model. And at the end of the season, everything that I don’t sell, I sent back to the brand except for the carryover styles. So on all the overall new asset profitability level on the absolute adjusted EBITDA profit pool, it is very comparable for us. So we are agnostic.

We are able to work and collaborate with brands either way, whether they prefer the wholesale model or the curated platform model. And from what I said and the difference in the cash flow and also the inventory risk as the creative platform model, the brand keeps on having the inventory risk. It depends on the brand, the willingness also to participate in that model. And so it is not a model that is for every brand. And we can only reflect on what our current discussions with the brands are.

And that’s why I always said, we will engage with one or two brands per year more where a brand shifts from the wholesale model to the creative platform model. But it will never be a major driver of the business model. So never a major change. At the beginning, I said this share will never be above 30% and it is significantly lower than 30%. But the brands that are on this platform in this model are very happy.

They called out that it really works well for them. But again, it is also has to play also for the brand’s appetite. It’s not for every brand to engage in that model. For us, as it is very has very comparable profitability levels and is has no difference for the customer. It is not a key factor for us to drive the performance or the business model.

It is more or less a way, an alternative to engage with the brands and to work with them and be able to offer both models to the brands.

Unidentified speaker, Bank of America: Okay. So if I understand correctly, then it’s more the discretion of the brand in which model they would have a preference to sell platform on the supplier as opposed to something that might tracer is.

Martin, CFO, MyTeresa: Exactly. No. It has to work work both ways. But obviously, there are certain limits on IT capacity at brands, willingness to engage in that model along the key ingredients. So So yes, I think it’s Mitrice obviously wants to be able to offer both models to the brands, which is good.

And therefore, then you have to see where there is common interest in pursuing this model.

Unidentified speaker, Bank of America: We have a question. Sorry, that’s just right. Can you please provide any color on performance of different categories like apparel versus shoes and leather goods and ideally in The U. S. Versus Europe?

Martin, CFO, MyTeresa: Yes. Happy to do so. I mean, the, Mitrice, first, I think it’s always important to know that we are the player with the biggest ready to wear share. So ready to wear share is over 55%. So really strong focus for us on ready to wear and that speaks and enables the to cater to the water building customer that comes back and obviously needs more ready to wear.

And then we also have obviously shoes and then bags and accessories to a lower degree. And performance of those categories is very similar right now. It is more related to the brand. Some brands, they perform very well. We clearly reflecting the polarization in the brand portfolio.

And obviously, the for example, on the shoe side, I mean, the sneaker trend was never so big at MyTeresa and right now is also not so important. I mean, we increased the menswear business a lot and there, obviously, shoes play a different role. Bags, also, yes, some significant highlights on the brand side. There are some high performing bags and it keeps on being a great adjacent category. But the core focus of MyTeresa is on the ready to wear side, and this is worldwide.

So the category performance is very similar if you look at U. S. Versus Asia versus Europe.

Unidentified speaker, Bank of America: Maybe I’ll finish with one final question from my side. Just a question on tariffs and how tariffs will potentially impact the MyTeresa business. I think it’s a hot topic that’s kind of played out the whole way through the conference today and I’m sure will tomorrow as well. So you can just help us understand what would the implication or what is the implication today for you and what would the implication be if we continue to see tariffs?

Martin, CFO, MyTeresa: Definitely, high level of uncertainty on the tariff side. The positive thing to call out on the tariff side is that we are operating in the luxury market where the price elasticity is very low. So the recommended retail price by the brands is always a price that reflects all tariffs, because those brands are predominantly produced in Europe, France and Italy. And therefore, an increase in tariff is expected to be then reflected in the price levels in the respective markets. And as we consider in our pricing, oftentimes the level of the recommended retail price, then this would then also lead to an adjustment of our pricing, so a pricing increase in that respect.

So it’s a special situation, but overall, I mean, tariffs are never good, yes.

Unidentified speaker, Bank of America: And follow-up on this. Do you think The U. S. Consumer is resilient enough to absorb incremental price increases even if they’re related to tariffs, considering where pricing has gone to in luxury over the last couple of years? Do you think there’s still more push?

Martin, CFO, MyTeresa: That’s exactly difficult to say. You’re completely right that in the last years, prices on the luxury side have increased significantly different by there are differences in the brands. So some brands have a bit overplayed it and there’s always this big discussion on whether the prices are the price increases have been justified or not and what to deal with it right now. And yeah, I mean, if there are tariff increases, the customer still has to reflect on those prices and see whether they’re they’re still still in willing to to engage. And they are also, Mitrice’s focus on top customers with the lowest price elasticity, lowest level price elasticity, obviously is the best protected from those tariffs.

But we obviously have to see how tariffs and the degree of tariffs play out. But the I think the focus on the top customers is a is a is the best way to to be positioned there.

Unidentified speaker, Bank of America: Yeah. Perfect. Well, thank you so much for your time. We really appreciate you being here with us in Miami today.

Martin, CFO, MyTeresa: Thank you.

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