MYT Netherlands Parent B.V. (NYSE:MYTE) Q1 2024 Earnings Call Transcript

Abhinav Sinha: Sure. Thanks for that.

Operator: Your next question comes from the line of Yawen Gao from CICC. Please go ahead.

Yawen Gao: Okay. Thanks for taking my questions. I have one for China and the Chinese customers. I saw luxury companies they’re still waiting for the demand recovery in China market. I’m just wondering what about your observations and could you give more comments on China market and also the Chinese customer performance? Thank you.

Michael Kliger: Thank you. Happy to address that question. Our observation is very much in line with the luxury brands. We have seen a rebound over the last six months, starting in March, April, but it’s a very slow one. So the recovery for us in China is slow and we contribute this to two factors. One is we saw initially also by our on the ground teams, a high propensity, high inclination of Chinese consumers to spend on going out spend on travel within China, travel within the region. And so that is actually a similar pattern that we have seen in other markets. And then the second one is also in China, an aspirational customer segment that is much slower in rebound than the top spending customer. So overall the market is improving, but at a lower speed than many, many people expected.

Yawen Gao: Thank you.

Operator: This does conclude today’s conference call. Thank you for your participation and you may now disconnect.