Online Luxury Retailer Mytheresa’s IPO Raises $407 Million

The parent company of online luxury retailer Mytheresa and an existing shareholder raised $407 million in a U.S. initial public offering after pricing the shares at the top of the marketed range.

When Mytheresa starts trading on the New York Stock Exchange later on Thursday, it’s expected to have a market value of about $2.23 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.

The pandemic has been a mixed blessing to internet retailers, Mytheresa Chief Executive Officer Michael Kliger said in an interview. While the outbreak has disrupted supply chains, the lockdowns imposed across Europe have encouraged more people to shop online.

Online Luxury Retailer Mytheresa’s IPO Raises $407 Million

“Our logic has always been to focus on our core customers, the true luxury customer and we try and understand what else this customer may want and find exciting,” Kliger said. “It’s not about a different direction, but about becoming more relevant for our customers. That’s why we added active wear and ski wear, kids wear and menswear.”

Mytheresa, which specializes in women’s clothing and accessories, carries more than 250 brands including Gucci, Prada and Givenchy and has customers in more than 140 countries, according to its website. Mytheresa is based near the Bavarian capital of Munich in southern Germany.

The company reported net income of 6.35 million euros ($7.7 million) on net sales of 450 million euros for fiscal 2020, according to filings. Over the coming years, it’s aiming for revenue growth of between 22% and 25% per year, Kliger said. Mytheresa wants to keep earnings before interest and taxes, depreciation and amortization as a proportion of revenue at about 8%.

Mytheresa traces its roots back more than 30 years to a luxury boutique in Munich. In 2006, it launched a small e-commerce business and has now grown into a business with more than 700 employees.

Its rivals include Richemont’s Yoox Net-a-Porter unit and Apax Partners Inc.’s Matchesfashion Ltd.

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