MYT Netherlands (MYTE) AI Stock Analysis

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MYT Netherlands

(NYSE:MYTE)

59Neutral

MYT Netherlands exhibits robust revenue growth and improved profit margins, particularly highlighted in the recent earnings call. However, ongoing profitability challenges and weak cash flows weigh on the stock's overall performance. The technical analysis shows a neutral outlook, and the valuation raises concerns due to negative earnings. Strategic initiatives, such as the acquisition of YNAP, may provide future growth opportunities and market synergies.

Positive Factors

Earnings

MYTE reported an impressive beat to Street estimates driven by higher revenue and higher gross margin.

Integration Benefits

There is increased confidence around potential near-term synergies with the YNAP integration.

Market Expansion

Mytheresa continues to impress with market share gains in the U.S. and Europe.

Negative Factors

Macroeconomic Challenges

China and Germany remain pressured and continue to be impacted by ongoing macro headwinds.

Regional Performance

Asia remains weak due to China still being negative.

MYT Netherlands (MYTE) vs. S&P 500 (SPY)

Market Cap

$702.59M

Dividend YieldN/A

Average Volume (3M)239.84K

Price to Earnings (P/E)―

Beta (1Y)1.56

Revenue Growth12.01%

EPS Growth-23.53%

CountryUS

Employees1,817

SectorConsumer Cyclical

Sector Strength66

IndustryLuxury Goods

Share Statistics

EPS (TTM)-0.43

Shares Outstanding85,265,960

10 Day Avg. Volume217,358

30 Day Avg. Volume239,844

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.73

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.50

Price Target Upside39.56% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

MYT Netherlands Business Overview & Revenue Model

Company DescriptionMYT Netherlands Parent B.V., through its subsidiary, Mytheresa Group GmbH, operates a luxury e-commerce platform for fashion consumers in Germany, the United States, the rest of Europe, and internationally. The company sells clothes, bags, shoes, accessories, and fine jewelry through online and retail stores. It serves high-income luxury consumers. The company was founded in 1987 and is based in Munich, Germany.

How the Company Makes MoneyMYT Netherlands generates revenue primarily through the sale of luxury fashion products on its e-commerce platform. The company's revenue model is centered around direct-to-consumer sales, leveraging its extensive collection of high-end designer merchandise. This is complemented by personalized customer service and a seamless online shopping experience, which helps in maintaining a loyal customer base. Additionally, MYTE may engage in partnerships with luxury brands to offer exclusive collections or collaborations, further enhancing its appeal to fashion-conscious consumers. The company's earnings are significantly influenced by its ability to attract and retain affluent customers who prioritize exclusive and high-quality fashion items.

MYT Netherlands Financial Statement Overview

Summary

MYT Netherlands exhibits robust revenue growth and a strong equity position, but faces challenges with profitability and negative cash flows. Improving operational efficiency and cash flow management is essential to leverage its revenue growth.

Income Statement

Neutral

The Income Statement shows mixed results. The Gross Profit Margin is healthy at approximately 45.9% TTM, indicating effective cost management relative to revenue. However, the company is currently experiencing negative Net Profit and EBIT margins, reflecting profitability challenges. Despite this, revenue growth is evident, with a 27.8% increase from 2022 to TTM, showing strong top-line momentum. The company should focus on improving operational efficiency to enhance profitability.

Balance Sheet

Neutral

The Balance Sheet reflects a moderate financial position. The Debt-to-Equity Ratio is manageable at 0.21 TTM, suggesting a conservative leverage strategy. The Equity Ratio stands at 57.9%, indicating a strong equity base relative to total assets. However, the Return on Equity is negative due to net losses, which is a concern for shareholder returns. The company maintains a solid asset base, but profitability improvements are necessary to leverage this strength.

Cash Flow

Neutral

Cash Flow analysis reveals some weaknesses. The Operating Cash Flow to Net Income Ratio is negative, indicating cash flow issues relative to net losses. Free Cash Flow is negative, which highlights challenges in generating cash after capital expenditures. Although there was a substantial cash inflow from financing activities in TTM, reliance on external funding is not sustainable long-term. The company needs to enhance its cash flow generation to support operations and growth.

Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
840.85M	768.62M	689.75M	612.10M	449.49M
	Gross Profit
384.53M	382.59M	354.99M	287.04M	209.94M
	EBIT
-21.95M	-6.06M	4.83M	-32.16M	20.91M
	EBITDA
-6.74M	3.33M	13.92M	-16.13M	28.79M
	Net Income Common Stockholders
-24.91M	-15.12M	-7.90M	-32.60M	6.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.11M	30.14M	113.51M	76.76M	9.37M
	Total Assets
696.51M	693.97M	614.78M	521.94M	385.80M
	Total Debt
49.77M	57.67M	22.01M	14.15M	220.91M
	Net Debt
34.66M	27.54M	-91.50M	-62.61M	211.54M
	Total Liabilities
260.87M	246.54M	183.11M	136.22M	321.42M
	Stockholders Equity
435.64M	447.43M	431.67M	385.72M	64.38M
Cash Flow		Free Cash Flow
-1.79M	-77.81M	42.92M	-19.42M	8.14M
	Operating Cash Flow
10.02M	-55.05M	54.84M	-16.49M	10.56M
	Investing Cash Flow
-11.81M	-22.76M	-11.92M	-2.89M	-2.42M
	Financing Cash Flow
-13.28M	-5.44M	-6.05M	86.79M	-878.00K

MYT Netherlands Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.24

Price Trends

50DMA

8.85

Negative

100DMA

8.46

Negative

200DMA

6.74

Positive

Market Momentum

MACD

-0.11

Negative

RSI

53.66

Neutral

STOCH

81.47

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYTE, the sentiment is Positive. The current price of 8.24 is above the 20-day moving average (MA) of 7.61, below the 50-day MA of 8.85, and above the 200-day MA of 6.74, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 81.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MYTE.

MYT Netherlands Risk Analysis

MYT Netherlands disclosed 76 risk factors in its most recent earnings report. MYT Netherlands reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

MYT Netherlands Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	60 Neutral	$220.27M	17.18	3.95%	10.03%	-1.85%	-57.84%
Sector *	60 Neutral	$6.85B	11.71	3.16%	4.15%	2.39%	-21.87%
MYTE	59 Neutral	$702.59M	―	-8.28%	―	12.01%	-23.53%
BRLT	58 Neutral	$154.05M	―	3.88%	―	-5.43%	-15.13%
REAL	51 Neutral	$704.58M	―	32.94%	―	9.32%	25.94%
CPRI	49 Neutral	$1.75B	―	-67.22%	―	-12.34%	-574.65%
LANV	43 Neutral	$319.05M	―	-70.81%	―	―	―

* Consumer Cyclical Sector Average

Performance Comparison

MYTE

MYT Netherlands

8.24

3.93

91.18%

CPRI

Capri Holdings

14.87

-20.96

-58.50%

MOV

Movado Group

13.96

-10.20

-42.22%

REAL

RealReal

6.23

2.38

61.82%

LANV

Lanvin Group Holdings

2.18

0.67

44.37%

BRLT

Brilliant Earth Group

1.55

-1.12

-41.95%

MYT Netherlands Earnings Call Summary

Earnings Call Date:Feb 11, 2025

(Q2-2025)

% Change Since: -17.60%|

Next Earnings Date:May 14, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong financial performance with significant growth in revenue and profitability, driven by successful customer engagement and strategic brand partnerships. However, challenges in Greater China and increased marketing costs were noted. The expected acquisition of YNAP is seen as a positive strategic move to strengthen market position.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Mytheresa reported a strong net sales growth of 13.4% in Q2 of fiscal year 2025 compared to Q2 of fiscal year 2024, with the U.S. market showing a significant 17.6% increase in net sales.

Improved Profit Margins

The gross profit margin improved by 110 basis points to 50.9% in Q2 fiscal 2025, and the adjusted EBITDA margin increased by 350 basis points to 7.3%.

Successful Customer Engagement

Top customer GMV grew by 9.1%, with a notable increase in average spend per top customer by 13.6%. The average order value increased by 9.5% to €736.

Exclusive Brand Partnerships

Collaborations with luxury brands like Moncler, Victoria Beckham, and Bvlgari were highlighted, reinforcing Mytheresa's focus on high-end luxury.

Expected Acquisition of YNAP

The acquisition of YOOX NET-A-PORTER is expected to create significant synergies and form a leading global digital luxury group.

Negative Updates

Challenges in Greater China

Results in China and Asia were impacted by ongoing macroeconomic headwinds, leading to dampened demand.

Increased Marketing Costs

The marketing cost ratio increased by 160 basis points to 12.3% in Q2 fiscal 2025, reflecting a return to normal marketing spend levels to capture market share.

Company Guidance

During the Mytheresa Second Quarter of Fiscal Year 2025 Earnings Conference Call, the company reported robust financial metrics, reflecting strong business momentum and growth. Compared to the same quarter last fiscal year, Mytheresa achieved 11.9% growth in Gross Merchandise Value (GMV) and a 13.4% increase in net sales, with the United States market showing significant growth at 17.6%. The average order value over the last 12 months rose by 9.5% to €736. The company also reported an improved gross profit margin of 50.9%, up by 110 basis points, and an adjusted EBITDA margin of 7.3%, marking an increase of 350 basis points. Despite the macroeconomic challenges in China, Mytheresa maintained stable inventory levels and saw a 9.1% growth in GMV from top customers, driven by a 13.6% increase in average spend per top customer. Looking forward, the company remains optimistic about closing the acquisition of YNAP in the first half of calendar year 2025, which is expected to enhance its market position and synergies.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.