The luxury e-tailer saw modest growth as aspirational luxury consumers cut back on nonessential spending. In its first quarter of the year that ended in September, Mytheresa’s gross merchandise volume — a measure of goods sold on the platform — rose 3 percent year over year to €204 million ($224 million), against a 13 percent increase in the previous quarter.

The company’s profit margins also fell as price-conscious consumers flocked to competitors offering steeper discounts. Mytheresa’s gross profit margins slipped 7 percentage points in the first quarter, and its profits on the basis of adjusted earnings before interest, taxes, depreciation and amortisation dropped more than 100 percent.

Mytheresa said it expects sales and profits for the full fiscal year ending in June to come in at the lower end of its previous guidance, with 8 percent year-over-year sales growth and 3 percent EBITDA profit margins. Investors appeared spooked about Mytheresa’s growth prospects. The company’s stock dropped more than 5 percent following its earnings release.

Still, as aspirational consumers’ spending power remains challenged, Mytheresa made inroads with its focus on growing its cohort of high-spending clients. Its top customers grew 19 percent in the first quarter, and that segment accounted for nearly 40 percent of sales in the same period. That was due in part to the company partnering with brands like Erdem and Rabanne to offer exclusive in-person experiences for top clients. This concentration on high spenders helped Mytheresa’s average order value increase 5 percent to €660.

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US Sales and Top Spending Customers Drive Sales at Mytheresa

The Munich-based e-tailer is benefitting from its focus on courting luxury’s wealthiest shoppers, CEO Michael Kliger told BoF.