Revenues in 2019-2020
Invest in IPO Mytheresa
Mytheresa operates an e-commerce platform for the global luxury fashion consumer, in addition to its flagship retail store and men’s location in Munich. Mytheresa started as one of the first multi-brand luxury boutiques in Germany and launched its online business in 2006.
Mytheresa provides customers with a highly curated selection of products, access to exclusive capsule collections, in-house produced content, and a personalized, memorable shopping experience. The average order value is €600, which is one of the highest in the industry. Since the inception, Mytheresa has retained 100% of its brand partners, which is a testament to the strong, trusted brand relationships. From fiscal 2019 to fiscal 2020, the company grew its active customers 21.7% to 486,000 customers.
The global online luxury market, inclusive of luxury apparel, accessories, beauty and hard goods, is expected to more than triple from €33 billion in 2019 to €105 - €115 billion in 2025, according to Bain & Company.
The online personal luxury goods market is global with the Americas representing 30% of the market in 2019. Global online luxury multi-brand retailers and online marketplaces are gaining market share over incumbent players, including department stores and luxury retailer’s websites, according to Bain & Company.
Mytheresa faces intense competition from Farfetch and The Real Real. If Mytheresa is unable to compete effectively, their business, financial condition, and results of operations would be adversely affected.
If Mytheresa is unable to anticipate and respond to changing customer preferences and shifts in fashion and industry trends in a timely manner, their business, financial condition and results of operations could be harmed.
The continued success is substantially dependent on positive perceptions of Mytheresa brand which, if eroded, could adversely affect customer, employee and brand partner relationships.
Mytheresa (MYTE) plans to sell 15.6 million shares at a price range of $16 to $18. The company intends to raise as much as $280M in an IPO of its common stock at about $1.6B valuation.
The company booked $576M in revenue for the last 12 months. Gross margin is around 46%. The revenue grew by 27% YoY in the first 9 months of 2020. The company is profitable and demonstrates positive free cash flows.
The company's closest competitor and market leader is Farfetch (FTCH), which is trading at 13x sales with 71% revenue growth and 47% gross margin. Mytheresa is asking investors to pay 2.8x sales, which is a significant discount to the industry valuation. The average P/S ratio for the public e-commerce companies listed in the US is 10x. The current sector momentum is strong: Poshmark, the recent IPO in this sector, has returned 98% since its first trading day. Mytheresa operates in a fast growing and large market and is profitable but lags behind Farfetch in terms of sales and growth. The expected return on investment is high, over 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.