MYT Netherlands Parent B.V. (MYTE) 28 Nov 232024 Q1 Earnings call transcript

Greetings, and welcome to the Mytheresa First Quarter of Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Today's call is being recorded [Operator Instructions] It is now my pleasure to introduce your host, Martin Beer, Mytheresa's Chief Financial Officer. Thank you, sir. Please begin.

Thank you, operator, and welcome, everyone, to Mytheresa's investor conference call for the first quarter of fiscal year 2024. our Kliger. is today me CEO, Michael With

are Before our actual to statements. discussions we'd risks like and statements Any including in differ and you Many that to remind factors and forward-looking materially. today are annual we uncertainties about we to the results make risks uncertainties, begin, comments expectations subject our will report. described include forward-looking cause could

to update forward-looking We under no duty are statements.

accordance financial addition, on with we in will not In IFRS certain call. measures to this reported refer

You earnings reconciliations at Michael. the of Investor available in can turn these find to website non-IFRS press on measures financial investors.mytheresa.com. Relations is now over our I will release, which call our

thank my a call. to Also our warm Martin. from you, Thank side, for you joining you, very and welcome all of

today and our will performance XXXX. fiscal on of We results of year the quarter first comment

our but challenging revenue we We in expectations, market growth are almost a environment. positive not small and results pleased financial loss, all competitors. also With surpassed our with a outperformed only macro

continue business apart us the when auto-building business our today, start positioned again, we improving with best a sector United margin on mitigate market will strong to that we the want challenging, very proportionally, business over saw As in geographies With accelerate expected, the and due merchandise. resilient spending market grew of benefit environment model double-digit aspirational our with prove remains and pressures though excess our intensity significant strength to model. adjustments. revenue sets fundamental States, customers, growth aspects promotional to stock and with the slowdown three improve. to focus give highlight the managed a to of in our I business Even in We demand a the in the conditions. high all for and macro high across head will winter top customers our cost in saw we us market customers and conditions be

and unique the generate our States spending the big customers in us particularly in focus building enabled to water customers United quarter. on First, top with growth first

relationships experiences partners offer Second, drive customer and first or more, our collections activations in strong the engagement from us and our that many the allowed exclusive customers and top quarter loyalty. to support capsule once brand

us we at financials, launch Sector ongoing resilient our model jewelry. Leipzig evolve quarter innovation to Third, peers. continue distribution growth, business state-of-the-art growth evidenced into expansion and center and the as from in the and our sets innovate for apart Airport by new of successful our first fine leading future

comment for these more now on highlighted in me three areas detail Let today.

First, in This the United above value Perform. compared driver first strong the occasional to XXXX. Mytheresa, luxury in an terms with again States The XXXX. the for year quarter States grew QX our in fiscal It of noteworthy of of gross plus net quarter, compared to QX that above market by expectations is year growth plus generated highly outstanding we fiscal growth XX.X% the and is total sales X.X% merchandise water of focus key our XXXX. year the to building for XX.X% United big fiscal for first not our is a of and significant continued the driver and market growth spending top business shopper. A growth our customers aspiration be on accounted continues

our fiscal X.X% more year our year by of value, XX.X% XXXX. LTM customers by focus plus Our top XXXX, increased is XXX once high average compared year fiscal of top the In greater our of EUR record fiscal first a by evidence that in Further plus XX% customer to to order top on QX base grew even QX numbers customer in compared increased plus quarter. XXXX. U.S., the to

our well the strong as many first brand as partners. experiences, demonstrating launches and again saw can events relationships high-impact exclusive support Second, and product quarter campaigns, from buy the money

All us of luxury globally positioned the as awareness, equity leading platform. further digital increased them our brand and brand

as launch details styles from The only launch prelaunch else, ahead of of our presentation assortment, Alexander key launch Manolo McQueen brand anyone Loro Mytheresa. launch Cucinelli, of Blahnik exclusive collaborations. capsule Please addition the for of an brand Mytheresa. shoes from the have Blue, only Cruise a We a exclusive the available of collection at collection the and at our XX-piece to the Piana collection of investor more see available capsule Brunello on

Warsaw, We the Butrym buy in our Examples also them customers, providing the dinner top hosted to and capsule. include events of a experiences. with money of in celebrate launch first quarter for again can Magda Poland events party exclusive the exclusive

the Figueres, Spain self-attending, first the proud to and shopping Angeles luxury Estate X and Milan, December. customers in we events as top Raban physical director partnership immersive Caracas Furthermore, a experience in Flamingo announce second X-day today of a in truly I'm House, for Chicago, the in Paris as in Los creative that As with Beijing. opened well Holiday partnership weeks our with for experience in

top with this with expect customers. our boost strong a We pop-up U.S. to again, business

of we business growth. drive Third, first to quarter future in continued for XXXX, the our innovation in

of warehouse week at Leipzig Airport first our successfully to operate. September, new The started

business, was not square through anyone the will company. building with As provide it hub adjacency growth airfreight of facility meter only new direct has to the DC also and thanks XX,XXX unique but project the of its customer for a space location its similar our of can DHL. major who capacity future milestone gone tell international dramatically service, large-scale ample to will The this a you, for improve

And of this year see the half expect we new to staff the second business. XXXX, now fiscal the positive and impact of facility on already our are of We ramping house. throughput fare the in up

later significantly of options States, cup from flight processing from customs international for the benefit return will customers additional faster and Our deliveries, times United through destinations.

carry deliver Repossi, add or several XX,XXX. B in jewelry we have the of Eprimo exceeding off already months. fine and offerings that To such quarter values last This further have new business globally. the top the will white We with expansion as dedicated high to jewelry the like more our initiative Mytheresa will DHL in also strengthen item I set we and mention positive Marina Express was pieces, second high report. change our up published Another with kicked offerings category coming spending fine that brands customers. glove value with service EUR Pomellato, a its would courier

financial our And growth eCommerce confidence of consistency of the our XXXX despite for also more results uncertainties luxury short-term consolidating believe our Positive partnership presentation to report Martin million discuss business performance expected emissions Report.With despite the details as our by and company, no current We medium-term space. should the to headwinds. one of resold see and winners this the over in the via COX Please strong that in profitable in the achievements the This strength all positions the with year and quarter I Some XX% we Mytheresa in macro solid electricity XX% in with as in demonstrate decrease on products the women detail. trajectory of preowned renewable highlighted hand few that our of ourselves of fiscal significant of now in include an We customers order XXXX worth are EUR fiscal results environment. XX% the for usage drives see X per first shipped, leadership model delivering in than levels more profitability our above, Change our pleased growth. surprise it Vestiaire our the Collective. investor come year

Thank you, Michael.

the constant from macro promotions and peers. Despite We a we in with in persistent currency headwinds, with our heavy plus sales challenging pleased environment view, XX% are in environment with expectations transitory. top and, is achieved EBITDA net line in our this of performance slightly these growth adjusted is QX, quarter. as margin promotional of minus result our negative a of heavy The in X.X% which line

ending positive EBITDA QX year in these we ahead, Looking 'XX a to fiscal finish margin. expect and despite pressures, of December adjusted with ongoing 'XX,

In addition, environment of in this expect bottom promotional half of for calendar market, and spring/summer top improvements we in a the XXXX heavy to to leading year slowing due inventory line. first adjusted the the

to performance affected the at of EUR EUR fiscal a currency Unless as to despite that the on all basis year our headwinds to for developments Euro. 'XX, increased 'XX throughout on quarter a will constant IFRS 'XX fiscal ended first QX business I year XX, fiscal September will in unique our results an of on our X% resilient testament times. stated, refer ability XXX.X is first basis positioning, quarter. even period certain the difficult review performance and million to compared the plus the prior market XXX.X X.X%. model of adapt and superior our Our provide key by details GMV plus was numbers of financial year and Growth now year in supplementary million. otherwise quarter In to 'XX,

our again valuable customer focus a growth the on quarter this in of Our is highly top result segment.

increasing customer customers. made purchase the total X.X%, plus throughout Our customers quarter. is XXX,XXX reaching number retention during top who customer XX% grew base last by Overall, active a plus engagement the with months a strong of the increasing XX of and active significantly,

we GMV first EUR various with the we 'XX. 'XX, with we world an QX U.S., each customers fiscal buyers EUR grew seamlessly collaboration U.S. to under in by position XX.X in In Growth sales the in first XX.X% partners, wholesale the brand in have the first-time a operating the During double-digit top of provide the models, plus to The to a net and year plus one XXX.X million, continuous by number growth. the our brands full seven continue build U.S. by continue We brands expect constant quarter, the fiscal saw model CPM increased of of million. impressive of of increased The once an two to plus offering to year-over-year during particular, plus during have XX.X%. regions by transition We of IFRS In leadership the growth them quarter. again increased X.X%.As number grew CPM. both to was U.S. our flexibility with the year. on at major to year basis basis quarter the currency in efforts XX.X%. we able are from XX% on fiscal

end quarter, As GMV. first the of of up of our the makes the U.S. total XX.X%

to continuous EUR on past increase continues increased The the level In QX increase a performance inventory to price In decline in operating order brands prior in to levels. sweet an economics profit individual of in mix margin. profit XXX. saw mathematically. by to an brands. we still other commission brands, of full and by figures, better witnessed average sale by gross our improves mentioned this leading in is exceptional to points profit brands per several as Among financial two, Subsequently, and spot decrease stronger order XXX-basis in a value, factors basis for few We our profit individual profit focus shipped years A CPM industry-leading EUR in to X.X% the share to margin inventory LTM accounted intense relation reflects promotional plus depreciation; with If point lower quarters absolute luxury. trying earlier. XXX XXX% in expected Our around promotions high-end decreases and the then due CPM CPM their with of fiscal selling AOV what anticipated, were, AOV and successful to in affected order. the one, perform relation unusual margin in in another represents XX balance margin contributed effects, for be that the a the price gross gross our effect, our continues than those activities than be mostly competitors net to Remember factors we gross similar gross to 'XX, of environment year that margin. sales provision are quarters. certain wholesale brands driven full only wholesale the certain of

considered, XX.X% in three increase by EUR months XX.X the hand, in to upcoming from three was the September achieved their XX.X% XX. for effect. QX. ended the increase representing The cost would XX.X% if the share months in and due September payment quarter. cost also CPM ratio QX in in to and due costs All other million, gross increase quarters, profit a million payment to XX, for profit brands ratio gross EUR we XX.X% margin of ratio or costs GDP XX, 'XX then factors the in of the profit the mathematically On million XX a would this the from X.X EUR increased EUR million previous Shipping positive achieved mainly of margin a gross quarter, onetime 'XX. QX during XX.X% year to was XX.X year we shipping effect preceding ended fiscal

throughout XX.X% we increased to customer Adjusted The by basis of first to strategies, acquisition focus ratio EUR XX.X%. and GMV the reduction operations to SG&A decreased in in lower as our level adjusted overall preceding ratio The staff Marketing percentage last fiscal year for Adjusted EUR we a similar during fiscal EUR with For continued first points GMV efforts expenses expenses and the year. period ratio. a marketing new EUR year's than fiscal from marketing the to most the year million is expenses now increase in X.X expect 'XX, continue 'XX. from fiscal modestly marketing a relation 'XX, in in million sentiment. XX.X XX.X% promising from full XX.X% quarter to 'XX. and selling, anticipate to mainly year customer logistics. increased SG&A fiscal in the on XX.X due especially QX decreased We cost by in to prior our cost attention expenses, million aligned to million the administrative market XX.X a efforts fiscal SG&A softer targeting general reach as personnel top year of an XXX higher quarter year in

was reflected As first the earnings for year during in and year million, the quarter during EUR adjusted already our year call, at of already guidance 'XX fiscal anticipated EBITDA minus fiscal slightly 'XX. X.X last full negative

to for a quarterly fiscal being of ongoing EBITDA with performance year in And due seasonality QX seen one quarters expect 'XX. prior heavy As we the adjusted environment, years, an end promotional weaker quarter QX to the despite with the varies margin. positive

slowing expect for leading heavy promotional first this a improvements we the in addition, bottom the In and environment, calendar half line. 'XX, of year top of to

platform Leipzig increased slightly improvements. In able our amortization technology margin to and of GMV for year strength new and of to in EUR X.X will growth million in model. 'XX was 'XX due X.X depreciation The low fiscal during business Germany. at also quarter, Depreciation to or or EUR amortization warehouse addition, and first QX right-of-use depreciation fiscal Leipzig, related year or is our level the of assets of new be Adjusted the expenses the expenses adjusted income new leverage in mostly we X.X% million EBIT key and operating and in the a X.X% as quarter quarter the warehouse with higher the X.X%. compared and prior net million to an million year margin minus adjusted minus income EBIT EUR of adjusted of minus EUR X.X margin minus net an X.X ended adjusted income We X.X%. to with an of

cash quarter inventory and X operating under million EUR the September We inventory ended borrowings year-over-year, of quarter which levels for plus XX.X EUR seasonal buildup preceding months below line, our of bank credit the inventory of year. the long-term used no XX of 'XX, XX% inventory fall/winter the the the previous plus our and XX.X seasonal End was current plus to finished the activities million During XX, increased is Due top of with EUR million cash slower during million merchandise. typical X.X to debts, buildup revolving XX%. deliveries EUR October, facilities. XX%

and with continue tactically is right to mindful attract of preventing our overarching cohorts aging. brand our We levels relationships, price, inventory manage inventory the full to on being and while retain focus customer focus undue

position confidence, sheet are managing levels inventory We a cash and carefully of our from strength. balance our leveraging

Given environment. our a story all to model growth continue are short even in our and profitable very remain we in challenging as this, business confident

and of promotional in this top year, the 'XX, the XX%. growth of ranges leading we environment we the We, slowing for line. and fiscal continue, to our XX% at growth in net our year we to guidance lower EBITDA and we top trends very a between sales HX the GMV but full therefore, confirm end level, to the confident the Gross X% from long-term plus X% and the guided margin similar between our medium- in preceding improvements macroeconomic a QX expect on expect October single-digit saw positive between the the expect QX. to current expect December, Based While margin. but compared profit bottom for heavy fiscal EBITDA of growth, uncertainties and in outlook and gross of this running what At we QX profit of an plus to X% remain business. similar pressures adjusted a line X%. low adjusted margin We to plus

completed and two milestones. market gaining share currently infrastructure are have major We

will We more market and luxury benefit current the economic challenges. less from over recovers proportionately quickly the when

every Our market getting positioning is stronger month.

fortification beyond, Michael customers of successful for will to the I you in year see leadership the remarks. call luxury, will brands. multi-brand and powerhouse concluding luxury this our and building luxury back a top his most fiscal for top over now the During position turn the

Thank you, Martin.

pleased fiscal results. with see the We of ourselves well to achieve targets macro year despite are challenging We continuously environment. XXXX year positioned our guided fiscal first our quarter XXXX earnings

the ongoing brand importance will the shift platforms customer digital the in We increasing and benefit best the to segment and desire the to spend. from spending partners to online The continue luxury big with by market. work of only

shopping ask questions. to consumers, that the offers line confident open And for multi-brand the the that, I is. operator are We best digital experience high-value with there Mytheresa your

line [Operator of Instructions] Matthew Your first comes question JPMorgan. Boss the from from

Great.

customers behavior then you've as So saw to maybe maybe, relative material you customer? speak leisure changes the behavior if any differences and to seen aspirational And recently just more elaborate particularly demand, top quarter that past you've seen just start travel as on Michael, first you from the what summer the in to moved off, consumer progressed? your could we've in

QX warm I was but and late, one start. traditional had merchandise mean, elements. story a summer different of so September of course, was, very The weaker very after retail Sure. comments, late of

of the price. spend to continue by They But they to terms spend to They customer well. as high to were In continue top they on amount in holidays differences a customers ready-to-wear. substantial continue spend, on on segment, August. spend did they of time back, spend coming continue

the grew The it going we U.S. XX%. top customer So in up. base grew the by AUV is We XX% by

holding So is absolutely that trend up.

market up, trend hitting mean, October. are demand. customers which other with to buy in also holding offers discounts, of is aspirational the are, much the I hitting of already They While is course, now enticed as slower already

while. may that they for discount haven't course, sales-focused. to So quite a spent of very is, and what be But spend they enticed now

And with interest in so customers we see vacations to start plan beyond merchandise also, of top already for they course, starting as our holidays. the Christmas spring/summer

business. So obviously, on the season sale winter customers of in also and top is merchandise spring/summer us the are, start start end for current one of spring/summer the is full for sale interest and price of of the particularly interest a it as our months hand, and for is

And a follow-up then Martin. for maybe

So could with led inventory guidance as what relative levels to on we line think see GMV more just you of revision growth? to here then about aligned the prior to elaborate ago, the range? the end from the months to And the X time lower

slightly The given plus know, full our and we outlook how positive strong have you that a QX, unprecedented as situation, flat the guidance year, are XX% positive. or at situation plus X%. for in is the fiscal of there environment. EBITDA fiscal year overall, the full But we X% margin a to for full overall continuation a fully the the we year, expected, expectations see a full the fiscal a we, lower to end have for and promotional X% see in therefore, cannot of as full guide beyond this guidance I for market on this the uncertainties -- lot well evolves fiscal the positive prudent we very adjusted We heavy think as a because of a to in is QX capture year account I guidance. of a mean, for plus the still, year guidance And

TD Your Cowen. next of question line Chen comes from from the Oliver

to margin in that quarters, came transitory? about think we [indiscernible] seeing? the [indiscernible] And to components be you're merchandise or margins? we more margin environment Gross trends the as were the may gross mix margin also components, And this gross as impacted and the what relative lower few next also, what

bit really in You off, cut gross think a were involvement it this about the I first margin is quarter. but

take So maybe it. Martin, you

our it's to, and margin. Happy basis environment decrease we XXX kind exceptional margin Yes. quarter seen in what and profit an more again The in full we've price lower unprecedented depreciation to what what referring exactly so. an gross in promotional was expected. a the quarter, XXX of we was took. do to share heavy profit I for this the the points, profit we mean, by expected in of what exactly basis quarter in And this the driven preceding also, -- line, margin a gross quarters inventory points operative saw gross that you're provision

a reflect a that. driver second at and profit to Looking with of wholesale have to And margin. of the effect inventory points with CPM they the brands levels basis XXX gross mathematical lower this performance this additional XXX% brands compared

expected and And of June just a due in onetime So gross drivers obviously, effect. January the The a to year, 'XX see fiscal provision as In this therefore, different inventory situation see. slippage. effect. this promotional to therefore, this to expect the market, decrease of we operative key in half heavy a exceptional onetime lower we for stated in a of that a promotional But so a gross is second expected QX, depreciation the margin operative intensity in this have the CPM spring/summer environment, is continuation we of effect, margin 'XX profit from continuation QX.

Okay.

control exists? seeing term Just may deteriorating And and your as a your these environment? in longer vulnerability hope so, in is that out, medium that against things there second, a promotional would way follow-up. business or trends future-proof zoom you a we're clearly about Michael, expect Why to ways. dynamics lower different you promotional be We you as but think

I'd be to that. happy take

where spring/summer improvements season of when in HX Up bought back last was demand slowdown November October, was the fall/winter in was bought the the not present. more that retailers to heading. logic was the 'XX. 'XX, it many on approach when where market conservative spring/summer the we heading. is cash -- constraints, was because mean, was market crystal And much of in crystal I clear Spring/Summer took platforms, to 'XX it now, clear many 'XX was was still spring/summer So year, a know also

So while market, predict clear be it that not easy merchandise which spring/summer a and more second is capsules, And 'XX it of less for the was spring/summer on is to crystal in price given top ready-to-wear. that for question, market. ongoing sale the the demand the Martin is to, in will the talking we focus uncertainties 'XX, on merchandise there will be less focus course, the driver to disciplined, collections, more focus end, our customers, exclusive promotions. instead on on top full of focus efforts your There

superior most shrank needs for market discount, All But to results allowed worst current these compete still into us not price, seen XXXX, conditions the as big not to in on exclusivity not market best us but that to that is where exactly approach has financial a allowed compete be losses. service on deliver newness, efforts and grow and XXXX. allow fall situation the since to solid the to people are on our with on to That us of has combine customers.

intensity creative out will, than better other there, for more business much That for product choice. the difference endless the unprecedented, right aspirational And are on the in the or last model. understand we customer guiding test resilience evidence out how is business difference of the IL business That performing against that and more focused there. our business now, conditions the we armor business posting approach this that's models, difference and years are are merchandising the is numbers moment base focusing a at multi-brand model. believe to we least key focused that really very is So that promotion and we are tough we believe important customers, in is are are product is a models much much, which of on. That on because choice we numbers full the the in much test, at the differentiator. XX model And

question next Ashley from the Jefferies. comes of Your Helgans from line

for on Blake Ashley. It's

rate I of unpack that there this? of And around drivers throughout the those the kind how of the very key [indiscernible] you sustainable? if up the One was XX%. Are then year? nicely, you wondering drivers rest first could of view

We do sustainable. are drivers believe these

do we different go-to-market to things as five, six a don't have at to U.S. done now coming focus we have for on. believe for We almost drivers we digit is don't So continue double can that grow The we consistently. the back in quarters offer others approach. or least

We curated very offer. have a

end. We very focusing high are much on the

products If our very distracted website, by you look set. box confused, you're with are low-price for product on not at points brands that not your in

this one exclusive of inspiration, quarter. Brunello products last which we had product I Cucinelli, offer best-performing brands. on focusing and the mean, much very are just in we We with

very that very of us that continue something gave X-week offers. we customers Hanson and pop-up L.A. and an start customers. something what sustained brands. we shoppers' customer product on in personal underlines of new acquiring with customers see a with East continue week, be focus our holiday inspiration We that in access uniqueness emotional on presence will of team, have we build next in resonate space the U.S. best-performing competitors. Again, seems multi-brand this house resulted in that exclusive one We clearly new unique Piana, in We retailer exactly can is and great unique, presence pop-up again curated holiday, as U.S. the that a a continue do getting And course, market see to we'll, our U.S. to high-end offer that well the with to experiential great the the And will We cohorts. this track our consumer, and with our into U.S. will with with do Loro to against for

gross question. in you EBITDA QX could margins you positive quarter. then second a in Did you think the expect I know say you And well? margin as out mentioned model shake where

don't We to And to give you quarter. also in a next for immediate situation, the this the quarters, don't least season. usually lead they gross guidance, evolve, gross at bit to by we quarterly then, 'XX margin in we second of buy wanted especially a but in guide the spring/summer how due margin Michael significant while the in improvement different referred what profit the driven is year to, 'XX given fiscal the exceptional half

Your Kunal the from of line UBS. next from question comes Madhukar

can represent? AOV are you we when talk what did AOV top different do customers, top And XQ customers the year-over-year basis? customers? how perform top for customers of the how And a kind on talking terms non-top for AOV, of How is fiscal 'XX? versus One, from about in was then GMV of that about that percentage

top the the business XX.X%. for the LTM share GMV in of On was QX terms customer, of

earnings exactly. recall another last report, reported or we So don't increase the I XX.X% XX.X%,

quarter. added So as point from quarter percentage we we the went this another to last

LTM to for the is customer top around standard The We in it's versus aspirational But slowdown bigger. repeatedly reports, have don't compared EUR that more customers. of spend achieved average out for continued we So customers X,XXX that we of AOV break in customers expanding. top this specific customers the the make stated of top the share our XXX. the continued AOVs that business

determined levels slowdown then And that talked started. one the to the it was, about you spring/summer XXXX, that things were the of of comes the after kind buying when

more to end weaker market it so what is even than will retail remain up at overall? inventory level like the And of the is cases, So, continues possible that what they even -- feared? lower luxury with

the smaller And the equation obviously, 'XX. the will of spring/summer inventory to fall/winter combined one equation. mean, sure inventory or than for Inventory answer be market the cross the is is in combined of of smaller. that spring/summer I an part

it. that's So

equation line less improved in And it to it will to sell-throughs, to be better similar, promotions margin. they be other we The is, part of demand they they months? the to see levels Or the top The it leads speculation. then the the will best comparable to XX will and if leads are similar up is rest down? because be guess a as a better last will and market leads

if speculation. quickly, it that gives further suddenly reduced is by Of be reduced eaten the the very sort for the could boost. market up an of demand that goes course, you south, inventory even it market If much rebounds extra

And then sorry, one, and on. last one keep going I'm just I

of us for we you of understand have is cash help for whether like, term? flow year liquidity the that EUR needs should in side, you understand liquidity to the meet the near the rest think how free On million can order to revolver sufficient XX the

million for that. revolver. quite ended use the So the million the and no quarter fall/winter of which million the unique of debt EUR very X as we 'XX EUR balance quarter, in XX build cash, bank up We and pay typical use long-term is sheet. in with cash XX seasonal merchandise our EUR

So we revolver revolver. a EUR warehouse. XX EUR net the fall/winter million is And expect utilization merchandise of sufficient. the because million that now the in of Fully sufficient our XX all fully we have

We expect that the cover peaks. seasonal is the revolver to sufficient fully

today. what comfortable very with have so And we are we

Abhinav of line the from comes question Sinha next from Societe Your Generale.

on top the questions. One, it of to GMV. customers, that XX% grew the said two you So,

question will the EBITDA I business. you which the the mean, margin my start there showing as it like, XP normalized critical margin on number scenario, remember gross second on I XX%, one. that's if is have a in gross a So a margin. beyond well? And XX% correctly, was or So is for

that? X%? how rest X%, of also worse like was it the Was down it better the business? than Or or So, was

just or the tipping is margin customers. with customers Well, you answers first rightfully understand higher number top with question and as profitability aspirational question. like than assume let I point then the me Martin mean, take the I one,

we customer would, course, impact of it theoretical, the surely of the the EBITDA P&L. have top of business so course, And also customers, overall with overall of would XX% the if

sense, that that top customers But So over XX% is in to XX% we logic as having are years, the your from gone absolutely right. the last continually to but so X XX% speed. of is organic share expanding our see, you

to the to way in is customer or there's expectation top improvement top therefore, intensity market. customers, something not organic sort promotional of also but quarter no the focus within boost the possible. in And on one share XX%, two is within there to quarters no continued So reduce EBITDA that's close and actually

now, of access right to by due transitory see inventory. focus heavy due we we situation, profit do years, where Exactly, as to due points profit Yes, environment unprecedented I'm I XXX have to promotional we mean out, the And the due this you last core model. driven elements business basis margin to top this in question. margin the achieved the on our gross pointed to a are the margin XXX the operative to happy customers gross Abhinav, consistently XX% situation, dilution gross

margin profit and And again, next 'XX, says gross this this we obviously, expect saw achieve quarters we then so, the in And a slippage profit gross then especially of normalization transitory. levels that before. it's fiscal year the margin to

of question from Yawen line CICC. Gao comes Your from next the

Okay. the one China and have Chinese for market. I

some give Chinese recovery observations? your still more and what side, market could waiting on they're cost China wondering of company So in just the performance? comments for also demand market. I'm the luxury And you China about

Happy to address that question.

in Our brands. with luxury observation the is very much line

starting over We one. months, the in March, slow but have it's rebound last X April, seen very a a

the So, to to is on in two China, and this propensity, within by the Chinese within us ground inclination our travel teams, on we travel slow on One of high the for saw high a out, consumers is going contribute we China region. initially, spend also spend factors. recovery

than customer customers. in other pattern the so in much aspiration And is a top China, that that also is then is actually one that slower have in And seen rebound markets. similar the we second in segment spending

but lower improving, at is speed market the a than expected. overall, many So people

now disconnect. participation, This does may and you call. you for conclude today's your Thank conference