The following is a summary of the MYT Netherlands Parent B.V. (MYTE) Q2 2024 Earnings Call Transcript:
Financial Performance:
MYT Netherlands reported an 8.3% growth in net sales and a 4% adjusted EBITDA margin.
The company's Growth Merchandise Value (GMV) increased by 5.9% at constant currency while the nominal GMV grew by 1.5% (€25.9 million in previous year to €219.1 million).
The company's operating cash flow was €19 million with €85 million in unused credit lines.
The second quarter saw net sales grow by 8.3% with an extraordinary 17.4% growth in the U.S market.
MYT Netherlands ended the quarter with a strong balance sheet indicated by 61% equity ratio.
Business Progress:
MYT Netherlands has shown resilience, achieving double-digit revenue growth in the U.S. and maintaining a gross profit margin of 50%.
This resilience, in conjunction with their inventory management strategy, puts them in a good position to achieve their target of 260 days inventory outstanding by the end of fiscal year '25.
Recent operational updates include expanding to a new Leipzig distribution centre, launching their own Apple Vision Pro app, and dropping exclusive collections with various luxury brands.
Looking forward, the company is well-positioned to capitalize on an anticipated expansion of the overall market and increasing online share in the luxury sector, as per the Bain-Altagamma research study.
More details: MYT Netherlands IR
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