8. MYT Netherlands Parent (NYSE:MYTE)
Number of Hedge Fund Holders: 9
MYT Netherlands Parent (NYSE:MYTE) operates Mytheresa, which is a global luxury e-commerce platform that offers high-end fashion. It encompasses womenswear, menswear, and lifestyle products available through online and retail channels. Its business model focuses on curating exclusive collections and providing a premium shopping experience to a high-income clientele.
Mytheresa’s core business segment is its luxury multi-brand digital platform. The company reported a 13.4% year-over-year increase in net sales for FQ2 2025 and reached €223.0 million. It saw an 11.9% increase in Gross Merchandise Value (GMV) to €244.7 million. This growth is attributed to Mytheresa’s focus on high-spending and wardrobe-building customers, which resulted in a 13.6% increase in GMV per top customer. The platform’s Average Order Value (AOV) also saw a 9.5% increase to €736.
The company’s strategic initiatives, which include exclusive capsule collection launches with luxury brands, expansion of its fine jewelry offerings, and impactful top customer events, are driving customer engagement and sales. Mytheresa is expanding its presence in the US, with net sales in the region growing by 17.6%. The company anticipates GMV and net sales growth of 7% to 13% for the full fiscal year 2025.
Minot Light Capital is highly optimistic about MYT Netherlands Parent’s (NYSE:MYTE) future due to its strategic acquisition of YNAP and strong financial position. It stated the following regarding the company in its Q4 2024 investor letter:
“MYT Netherlands Parent B.V. (NYSE:MYTE) is currently our partnership’s largest holding and is poised to become a leading curated digital platform for high-end luxury fashion. The company has executed in a consistent and thoughtful manner throughout a meaningful consumer and luxury downturn over the past few years, which has led to a more rational competitive environment. However, the stock has become our largest position due to a game-changing acquisition of YOOX NET-A-PORTER (YNAP) from Richemont (SWX: CFR). For a variety of reasons, Richemont was highly motivated to divest YNAP, and MyTheresa was the only logical and willing acquirer due to the substantial synergies it could bring to the transaction. When the deal was announced, we had a small position in MYTE and it’s market cap was about $340mm (85mm S/O at $4.00/share) with about $15mm of net debt on it’s balance sheet. In exchange for taking on YNAP, Richemont put a cash position of 550mm Euros and no debt on YNAP’s balance sheet, provided a 100mm Euro revolving credit facility to YNAP/MyTheresa, and took a 33% equity stake in the pro-forma combined company.
Hence, in exchange for the issuance of about 42mm shares to Richemont ($172mm of value at the time of deal announcement), MYTE was able to acquire the highly synergistic Net-a-Porter and Mr. Porter luxury marketplaces that had a combined 1.2bln Euros of GMV (vs MYTE’s GMV of about 900mm Euros), the 900mm Euro GMV Yoox and Outnet discount marketplaces, and 550mm Euros of cash. The Net-a-Porter and Mr. Porter brands are currently profitable and should become even more so post-synergies when combined with MyTheresa. The outlet brands (Yoox & Outnet) are currently burning cash, which is the main reason Richemont provided MYTE with 550mm Euros on the transaction. We believe management will determine relatively quickly whether it can turn around the outlet business. If not, we think MyTheresa will shut down that entire business and can likely do so well before burning the 550mm Euro cash position…” (Click here to read the full text)
