Home > Business > Nearly half of MyTheresa customers in the U.S. and Germany spend tens of thousands on luxury goods annually: Cowen

Nearly half of MyTheresa customers in the U.S. and Germany spend tens of thousands on luxury goods annually: Cowen

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Cowen analysts conducted a survey of customers in the U.S. and Germany who shop on luxury e-commerce site MyTheresa, finding that about 45% typically spend more than $30,000, or €30,000, annually.

The study also found that the site has high customer loyalty, with about 90% saying they are likely to recommend MyTheresa to others.

MyTheresa is one of a number of e-commerce retailers that has gone public recently, with shares making their debut in January. The parent company for Mytheresa Group GmbH is MYT Netherlands Parent BV
MYTE,
+5.11%
.

“We like MyTheresa’s consistent execution reflected in steady active customers, revenue, and profitability growth from FY18 to present, as well as 100% brand retention that is key to supply,” analysts led by Oliver Chen wrote.

Analysts note that MyTheresa is a $600 million platform with the potential for more than 20% long-term revenue growth.

Read: German-based MyTheresa joins growing list of e-commerce retailers going public

“In addition to consistency, MyTheresa is positioned as a key beneficiary of global luxury going online; Cowen estimates the global online luxury market will grow +25% CAGR [compound annual growth rate].”

Cowen initiated MyTheresa stock outperform with a $40 price target.

JPMorgan analysts say MyTheresa has an “opportunity to own early inning e-commerce growth within the underpenetrated luxury online retail sector.”

Within the online luxury retail category, analysts say MyTheresa has less than 20% overlap with its competitors. Other companies in this sector include Farfetch Ltd.
FTCH,
+0.35%

and Nordstrom Inc.
JWN,
+3.53%
,
which sells online in addition to its traditional department store locations.

See: Ralph Lauren cutting 30% of North American corporate office space, shuttering stores around the world

Also: Michael Kors is becoming a stronger brand by growing smaller

“MyTheresa has a unique and differentiated positioning within the online multi-brand luxury sector, driven by its highly curated product offering and disciplined focus on the high-end segment of luxury,” JPMorgan wrote.

“On the product side, MyTheresa facilitates an efficient purchase process for its time-constrained consumers, with a focus on quality over quantity, making it easier for consumers to find the best product in a short space of time.”

JPMorgan initiated MyTheresa stock at overweight with a $38 price target.

UBS, which initiated MyTheresa at neutral, highlights the risks of the stock.

“Risk factors include luxury industry competition, a concentrated supply base, a concentrated customer/shopper base and complexities from an international presence,” the note said.

Still, UBS is “constructive” on the opportunity for the retailer as luxury heads online.

MyTheresa stock rose 6.2% in Tuesday trading. Shares began trading at $35.85 and closed Friday at $31.34.

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