MYT Netherlands Parent B.V. (MYTE) 15 Feb 242024 Q2 Earnings call transcript

Greetings, and welcome to the Mytheresa Second Quarter of Fiscal 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's call is being recorded, and we have allocated 1 hour for prepared remarks and Q&A. It is now my pleasure to introduce your host, Martin Beer, Mytheresa's Chief Financial Officer. Thank you, sir. begin. Please

Kliger. And quarter Mytheresa's With of is CEO, operator. for Conference me everyone, our second the fiscal Michael welcome, you, Investor to Call today Thank year XXXX.

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

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

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

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

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

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

with market a EBITDA in results pleased almost adjusted quarter, not we We in second but positive environment surpassed also only challenging with revenue all outperformed and the are our expectations positive growth competitors. macro

see we across geographies, the aspiration high from As continue all all in excess slow market promotional customers intensity stock to expected, and due for to merchandise. demand winter

in to and in XX% margin growth a EUR XXX macro and revenue of strengthened line States. gross top the posted the However, line. business actually fundamental second achieved average a profit grew United us double-digit record these company's the model. value We demonstrate our allowed headwinds strength LTM quarter. We of order of our the We reached bottom

on allow environment, to and to accelerate and share you. the want win us top spending improve. market when today's thus model wardrobe-building I high key to business benefit the resilient current will three to conditions market our highlight messages are market in clear we well-positioned and focus Our customers

current And all. changed so for headwinds. become digital if growth us better luxury prospects the at the has a for excellent player with anything, First, scoping not like has well

focus on quarter us our makes partner solid all clienteling own enabled efforts. Second, wardrobe-building second their key us the for growth in a big-spending our customers and top brands generate clear to in

evolve for continue are so future Market environment.Let and me share model stand for future that us and to resilient in customer more ongoing areas clearly current the highlighted our detail we today. business out we growth prepared on economics, innovation comment innovate business gains, these for financials, make best-in-class growth Third, in and demand. now market three

digital X% XX% to the the global at excellent market XXXX, have the Altagamma from XXXX. growth fashion grew research in XX% According changed in for luxury all. not to online share with the prospects First, latest by Bain luxury study, dropping

only is In over XXX EUR Mytheresa X.Xx, multi-brand increasing is effect winners. the overall a luxury for of happening, However, meantime, of of the the by to the billion. expanding year. one XXXX in TAM and forecast luxury long digital expected XX% the to fit market process the is consolidation sector online main share would by create digital of the surviving that the XX% is and That

fiscal year be Mytheresa, United of our currency the our basis XX.X% accounted States second an net X.X% market growth This shrank. driver continues was Second, the year to of solid quarter in again, fiscal XXXX. performance of that It is United top big-spending solid total for generate States plus market XXXX. significant customers is growth peers, We and growth mostly XXXX. net a constant focus year in enabled of above on XX.X% growth year fiscal us terms XXXX. the outstanding clear in above a sales to plus compared on grew for fiscal to highly of sales and of to wardrobe-building sales generated, noteworthy compared second which QX net the QX by quarter The

Our our focus the increased increased by further year QX fiscal more X.X% plus on XXX second top to States, customer base customer of average once high a by grew is In year United top evidence compared customers our year plus plus the LTM order that to even in by number to top EUR XX.X% our in fiscal record XX.X% XXXX. quarter. new QX compared fiscal of A XXXX. value of XXXX

focus luxury wardrobe-building partner top highly for big-spending customers desired on makes us own in clear efforts. Our brands clienteling the their

launches, exclusive and strong again, our saw, support product quarter many campaigns second relationships from high-impact the our The demonstrating partners. and brand

available launched Pucci more Loro our increased après cooling with brand to This for positioned for investor Greta partnership partnered Piana launched at leading Brunello Fusalp. our exclusive We awareness, brands, collections outperformed Beckham, equity, and in Givenchy exclusive and highlight desired all channels. of We ski collaborations. media across ski Piana is available Cucinelli, Bellamacina, with relevant Chloé, digital on at second Bogner, one with Please special Mytheresa. with and only beneficial presentation which digital further we for Mytheresa. And One and campaign exclusive collections Robot global capsule is featuring an joint of luxury globally time the them of the luxury launch collaboration platform. to mention our Victoria Montgomery brand us and customers. Loro our such the x and the All activations and launch details brand collection as how only shows most are the see

the Flamingo can't the CEO G Givenchy second them and fully-made registered of the weeks. included We collection in visitors course our buy we our L.A. customer including exclusive a in the again, Furthermore, celebration Holiday successful events of quarter House a a of Paris Vienna estate physical with The with installation New with created experience a X,XXX shopping And over Miu.We pop-up also experiences. closet. luxury Givenchy life-sized also top City. our and Creative created of X-day over hosted, December. Examples top providing experience. We capsule of Mytheresa-dream partner, York the events Estate, ran in Director money ginger-bread, our Angeles truly Miu immersive out present. hosted in replica for Los X customers, hosted events Together such of we with highly in the

the presentation night, unique opening Legend. experience. we on proudly For John this Teigen, welcomed Nicky more such Wood, guests Chrissy investor Elijah details pop-up see and our Hilton, Please for

international of continued the international second ramped the the almost with December. to DHL Leipzig cutoff benefit up served square XXXX, adjacency Because fiscal XX,XXX we customers from growth hub to in distribution end innovation our deliveries. We now in Third, center of business drive meter from successfully of demands. new also the and future for quarter year XX% at direct of all customer times orders already airfreight of later our there significantly for Express, operations

that partnership to Express, multiyear fuel, part we DHL. Plu signed service agreement the with our DHL access global recently As of provide sustainable aviation from with also a will us strategic SAF under GoGreen

the platform reduce SAF more agreement. based our are global SAF COX for on into investing emissions. in e-commerce to Germany, details We the largest see investor Please presentation

to strength immersive our see Paris, Italy performance the taking We app digital all on are our of Capri, launched true a no should demonstrate the France. our true is our to and results model, with that With its winner of the delivering it as first that the will take proud fiscal shopping present growth. the ourselves quarter we brands e-commerce strategy of very Apple clear app XXXX. space. also just as Mytheresa customers to We the I'm surprise can Mytheresa own money the an in on the to on consolidation of already users and pleased luxury business one Pro. buy experience of come believe above, Finally, announce Vision luxury Staying that profitable experiences, second with in year consistency

growth strong now. confidence I And to from prospects business to uncertainties on our also macro financial To also in over This opportunities well-positioned will trajectory are market to now, short-term future the levels hand accelerate prospects, are in profitability and when discuss medium-term improve. benefit our these environment supports We detail. capitalize investments to in growth in right despite our evaluating growth. conditions results the the thus and actively tremendous we support the Martin

adjusted In X.X% comes and at plus with achieved a macro in are we in with again what with with in performance saw growth peers. quarter, with quarters, This plus currency. top margin. this sales line line we our In EBITDA preceding a environment Thank challenging of persistent line for promotions our X% net profitable growth constant from pleased you, the Michael. heavy quarter we with guidance

growth end expectations, at January with February we well of far are As so and a continue line solid in lower the profitable guidance. our our to guide towards and

ended the from existing to million well-executed our and cash with from XX growth EUR the $XX quarter pleased In XX with million, to opportunities. EUR our in which addition, we $XX able We operating lines flow credit are to XX% million management plus increase were by inventory we million capture quarter. Rover, unused

as Once compared currency to refer again, in grew of the will review performance supplementary period. quarter. 'XX top On ended increased XXXX, for by XX, $XXX.X GMV customer an of numbers to second currency the role basis. million a $XXX fiscal X.X% basis, by otherwise focus on year a X.X% million prior as nominal Unless our grew essential quarter the net our compared in X.X% growth. the the Now, throughout provide quarter. that quarter by by in key Euro. prior year second period. certain fiscal XXXX, grew In a constant $XXX.X basis, on in GMV year results to played financial to to $XXX.X on X.X% On sales million all our and Net sales year driving December this IFRS details basis stated, constant developments affected an we million

demand providing collaborative regional growth models, to total We the complete The to the XX.X% in sales pushed continued with them of in can Impressive with partners, brands in brand in efforts performance of continue the XX.X% XX.X% softer a Europe offer under net year up quarter. seamlessly year. and Europe net we quarter In due CPM. from X.X%. flexibility versus share perspective, a XX.X%, a solid with we APAC. U.S., share From in sales previous overall XX.X% declining the saw grew by to World, our XX.X%, the seven share stability have now slightly wholesale both CPM. a in versus we XX.X% In experienced operating to mainly by Rest prior

trends going We these a of expect forward. continuation

Continued the overall in stable in stability growth impressive of World. in Europe, Rest outperformance U.S., and

increase the our XX us our to to a continued so performance XX AOV for absolute and by quarters an of order EUR order in average the months, trend industry-leading improves value per a based economics. last increased XXX. is EUR years. ship And order last In mentioned by terms, Michael, this remarkable additional As translates on an X.X% our and the in

consistently to margin continuous slippage commitment the visible full profit affected our with narrowed margin in press XX% basis Our gross points gross points around the quarter also selling margin industry-leading of expected profit gross to this promotional at as from XXX profit quarter. is be second XXX Even in though environment, during to continues by level, basis QX.

gross in the then If XXX QX. points is at the points from operational basis margin margin, you in slippage basis XXX quarter, consider down the only

XX.X% million. in successfully and dedicated aligned and XX.X%, but remained the stability promising CPM effects softer sentiment. was in of of the overstock in quarters. was line gross down cost conditions, acquisition upcoming mainly our such ended December $XXX.X XX.X% marketing the for months in focused quarters, XX.X% The strategies, from was further the the with cost retention by reduce adjusted aforementioned to ratios expect mostly has quarter EUR strategy financial The in at quarter. the where quarters. by and and implemented slippage margin therefore, an profit Continuing increase in is customers. from to the gross compared and most depreciation, we macroeconomic QX, achieve offset up an from a million all customer from payment 'XX our growing changes period. preceding lower additional to the gross slippage operational $XX.X with As coming XX, million to in setup QX focus million target customer we total, higher margin Adjusted costs presence market, $X.X margin in outside top In the inventory payment the sales in or operational our prior Amid fall/winter duties shifts quarter, the ratio during between year pay shipping high overall we gross the XX.X% acquisition XX.X increased in the XX.X% to share, sales overall the our and in driven the we marketing U.S., previous due share from cost to payment shipping efforts year the X increases, profit new The our in countries potential and and will market on Europe. and further as our custom customers, efforts to

on million of of shows expenses to year to second search of of It due the decrease million margin EUR year at profitable XX.X% high-end to increase XXXX, target HX warehouse $X.X only or our million of growth quarter. X.X% GMV general quarter. efforts in the spot million million we expenses consequence, the XX.X% in our driven $X.X of operational increased a year to compared quarter. prior With expenses year points in marketing achieved an decreased Leipzig. during EBITDA from by and right-of-use warehouse Depreciation the quarter SG&A million Leipzig. XXXX. HX of GMV, basis by in XX.X% a by decreased decrease focus cost fiscal year and to versus by second quarter to ratio personnel XX.X% fiscal $XX.X the SG&A or and XXX above the prior As costs $X.X staff, expectations. sweet adjusted million X.X related the especially continuously despite adjusted basis second is grew XXX luxury. fiscal the new market costs, The In our cost The our during 'XX. of new of $XX.X to environment ratio selling, resilience in 'XX Adjusted SG&A macro fiscal a amortization million. administrative points cost mainly with successful model marketing quarter by and in EUR as at business X.X% asset comes The modestly X during to an from challenging is to the increased for ratio continuous by X.X% This depreciation again year EUR the we X.X second of

Adjusted was EBIT adjusted year X.X%. fiscal EUR and income an during EBIT well XXXX, income income $X.X also the X.X is an million, million adjusted operating margin For demonstrated QX net of profitability with as at as adjusted or quarter on EBIT, adjusted Adjusted at adjusted of net net an stood income level. X.X%. margin of

look levels cash in in preceding come QX year at X.X inventory Leipzig a a CapEx and the was flow new cash in in year. order take targeted had of only we or CapEx million. cash an anticipated at negative mostly will positive EUR to this reduced operating volume flow fiscal million, for the The was fiscal In flow cash trade a the increase investing to at in quarter cash million year to was compares 'XX, as end due $XX.X warehouse payables. of $XX.X the flow the This operating Let's statement. flow of quarter.

of to below Looking beyond, business 'XX ahead line in year our in model. to we fiscal CapEx GMV, and targeted stay expect performance with our X%

growth to continue levels successfully from XX% now, execute plus in to We our XX.X% plus June, inventory year-over-year XX, XX. We in reduced September XX.X% in and our growth inventory XX.X% gradually management. December

of net continuation year, end days compared effect, June spring/summer also days, at decrease XXX to were February. growth you XXX 'XX from January end we seeing and outstanding XX% inventory compared end of of in of days out XXXX. If of net the And the of XXXX, the are this XXXX. plus early at At is previous would effect January deliveries to a

management targeted superior expect We margins gross end XXX outstanding the by inventory strategy with and inventory strategic days is path achieve fiscal to profit the successful in positioning luxury level years with inventory our X 'XX. This and over line achieved. our of inventory last year on

nevertheless XX.X Given of plus rolling only revolving facilities capture a the credit we small very increased XX% to million had additional utilization of opportunities. EUR our growth XX. cash end operating X.X from We million facilities million flow, to our $XX $XX December of million positive by credit

of borrowing only capacity of X.X end XX% With the million EUR non-utilized in over the to borrowing or million capacity. utilization other words, part $XX.X December, of amounted unused

do couple our banks be discussions balance besides next facilities in with the in are confident even of in facility We very we we the of are facilities, and believe above, facility longer and of strong with no XX%, flexibility. as an other credit primary give new ratio term. With revolving the debt, Remember, months equity replacing more us about credit loan bank surprise strategic not credit all comes our a positioning. any it will that syndicated place have it will revolving with with a with We sheet. the our that a

and have very infrastructure in business. market EBITDA and long-term X% margin medium the lower and growth sales profit to net again, We the market slowing confirm environment. encouraging challenging have end midst growth the guided XX%, implemented therefore, improvements during to to profitability ranges fiscal assumption measures dynamics us confident gaining GMV the and and and a XXXX performance appropriate promotional in full our environment X% confidence and is adjusted bottom of share our of steer major of is that the our XX%.Gross top guidance X% a We for milestones. consolidating line. our weeks quarter leading towards between HX X%. the our We We're between The fiscal in of in remain instills year two year true, first the of between an in at and with visibly completed of and for to third the company align outlook

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

market is stronger Our every position getting month.

rates Our medium profitability we single-digit turn for level. the remain with this, always the remarks. concluding at that a at And have call double-digit growth over Michael high targets to level his now back guided, will I

you, Martin. Thank

results. XXXX our pleased are of year with earnings We fiscal second quarter

quarter, We targets the pleased are guided weeks trading mentioned. well-positioned very to first achieve year ourselves of just to the XXXX third based for on see fiscal our as

players. Mytheresa given pleased for strengths, that, are luxury for for outlook We digital to the We And operator line ask questions. true digital very luxury luxury believe extremely experience our medium-term that big-spending and consumers most projections the shopping the competitive and sector best company positive other the brands. for with the offers I open the the versus your with

you, the Thank from will Instructions]. Michael, from first and your open we line for Boss And now [Operator of Matthew comes question Q&A. JPMorgan.

is line open. Your

Great, on you. thank Matt. for It's Douglas Amanda

given on you sales trends seeing And you share, capture Michael, to So thus just consolidation Europe? online that offensive the making then far? are luxury market could U.S. to you and the speak elaborate are seen we've industry moves in post-holiday

Amanda. Thank you,

Of course, sure.

of trend, globally general course, is aspirational saw the in customer So of 'XX. that the we the slowdown

the signs Europe. first U.S. However, continued a in a of we market, in the market, U.S. in the the strength see see And even aspiration customers. we stabilization pickup among

customers a stretch of before, is outlook, we almost week always further QX mentioned we that QX. in continued already big also very where Asia But had acceleration much the course, be globally momentum always everywhere. we before is working U.S. there the sometimes And by mediocre sometimes regard Martin, a already the is on the were slight good to season. not spending of the the be of as in holiday region full are we U.S. But strength wear with better long that Most into very to domestically, remains performance a continued to is, in January, there buying influenced the sales with based on which they economic The going trend year uncertain of the in sign, January. recovery spenders strong Of Europe aspirational thus, case. interesting the has a holidays. course, always not strong signs. One this saw main was vacation the can based and more trend resort on by what risk even this We customer, to attributed a outlook guidance confident believe over will pattern which early our stage saw and sentiment change. market,

So hard the to moment. read at

And selling of GMV to about half inventory to a think then from your the in growth? fiscal great. in price Martin. aligned second share time here That's year? the best just with for levels line greater achieving more follow-up confidence the see And How just full

I strongly as topic days, out, effect nominal days share. we XX to at the and forward inventory, And I'm this growth but you trends take on Yes, on strong X that then XXX with to the achieved -- and course, especially industry, full June targeted second into XXX relate over levels rates, XXX between level, level. each earlier. normalized back will situation to inventory with as then of the gross industry of we always on will in our I are end XXX Spring/Summer the And confident are of outstanding consideration days. look a the we quarters, depends on a deliveries that decrease to the the that XXX days, to those I level, evolve, days our with end going behavior, to normal the that. out, of and of Amanda. targeted big on increase have the implies typical the years, Yes. early it able seeing last looking for the really but average have quarters. year quarter. rates 'XX. the management shifts will And GMV have have end at we're And from price And that come maybe addition line profit inventory happy always of year with inventory level a fiscal 'XX, about consistent in in you mean, if now margin talk And levels there all is, fiscal that next is XXX called days. at the we in Because called to our days of And to today's this achieve on still growth high outstanding. latest how to GMV January, XXX competitive especially the high days, level. obviously, in decreased achieving inventory But

As Michael focus out, line and ready-to-wear price. emphasize, selling called our always positioning top our focus, as we on in our customer with is This we with focus. with high-end full at

with we stayed last true our And in inventory the gross and out on even in quarters in price. X XX ordering the so of and so of as XX see excess of the now, excess this much of season, 'XX. the the in of with And inventory promotional QX and a fall called confirmation year last a Spring/Summer focus level expect winter early Spring/Summer we in the in we margin, the market volume quarters, intensity the of that sales a full by lower strong of market, the was QX fiscal And driven profit in level line much lower spring/summer 'XX, lower industry. therefore,

further the we X of have decrease a last situation of and seeing gross months. the in therefore, margin expect we so, slippage And year fiscal an improvement been in HX operating 'XX, that of the on

That's you. great color. Thank

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

open. is line Your

Michael, will end low another line? cash? And the some guidance. you seeing bottom saying quarter you margins? Good have this margins the lot. Michael the glimmers? leading of does what guidance? what and we your also And full better Martin. a for market your that positive Thank The imply cash drove on and conviction you. this previously of quarter what's upside flow issued underlying customer, it source And to than at could a And why year? some recovering? were operating U.S. customer do aspirational the expected. Thanks Are one luxury your on the thoughts inventories What's morning, guidance that guidance, Martin, for be your be What's

Martin me U.S. customer but my over for let to the will Oliver. Thank recovery. talk guidance, you, then the I confidence about the in view, hand and and

this top are we calendar customers. the strength of spending year of the First all, the with very of on basis comfortable

XX% strong our drive We that sign to our grew than XX% of grew continue the we in we see U.S. there. in a We Again, overall. don't numbers even of accounts segment. more And with weakness

but are glimmer are with to so loyalty guidance. segment The, in aspirational already and even offer, globally at We our rightly geographies a don't that. That's a in consumer high U.S. more consumer which very spending. first you other a continue it tremendous of with top course, of with that segment in that exploration in coming. in accessory financial of the leasing strong of scenario have that where course, We we rates interest course, of spending, important U.S. of And as a the customers that spending in position occasionally that is, that position And our bags bit is, deliver will than or that very its in is, QX for is to curated we a buy. in having it rates potentially on kicking there don't important the speculation, U.S. sector, the saw yet. QX, know interest customers it so and see the we saw And a And of very far drive tools. put, directly influence

And to outlook stress where segment, our I'll on we So hand have but over HX of quarter after glimmer which then really to cash on top your quarter. customer guidance strength in is I the Martin the questions. the hope delivered and want for exists, based that's

for expectation and the Yes. talking we Yes. year. continue Oliver. also target quarter, ultimate Good and And to Thanks, profitable the our growth is you. last profitable you full I breakeven. fiscal growth, as were know, goal mean, remember to the

and want that us, direction. into that a continue So to profitable the stuff, return also And growth very see expect obviously, step for we and good is to coming. that

guidance also So -- guided growth. want this end of we inventory as at uncertainty ranges. implies our the last yes. I guidance for. returning January. the on the And given also confirm paid of more yes, the on stay true incorporates February, lower calling trend normalized mean, outstanding, to the are the ranges. levels are decrease And the profitable -- in days Obviously, guided the is to seeing end we lower want situation, guidance that that to quarter, in we inventory those expectation the inventory. all out of always and of this And we market, inventory we

cash as comfortable cash positive for very then but the guidance called that. our year, a fiscal taken effect we we I of the to the from full obviously, we And of setup, as for with reducing contributing the inventory, a year flow Obviously, those the increasing step. are in will return finance cash a flow in out, facilities that minimal -- XX we QX. blueprint looks that cash give overall of sell-downs, million a rerolling it all in XX%. full the It inventory million increased to significant we existing EUR positive end XX We sell and the a as very this So have And be X have continue. DIOs, the saw by utilization of from coming from million revolver quarters. EUR some you solid. for share the perspective December, EUR expect cannot This of was level and don't

that situation. also So a good is

you down, share going growth our to increase coming we levels inventory how positive a revolver special in out, see decrease continued we as increased in effect and opportunities forward the to market the has capture called So, can situation. that cash rightfully

comfortable inventory cash and on the side. the on we're So really

do lot. and you. of promotional The such landscape these Thank your nature one be And What's and going volatile as can follow-up. still competitors continues factors at And high terms that could Net-a-Porter Why through Farfetch the seeing that Okay. and have behave. several brands? a overlap? of confidence what you we're and be competitors are the to in similar inventories aspirational sell too how given players uncontrollable be

There a I And significant course, the description. of players of competitive overlap. mean, as There multi-brand of disruption. actually have, other with environment what a fair described you is is uncertainty. customer lot lot we is

gets the on the that and the on promotions, big that very spenders, strict strategy. couple our what believe cost ones full we be strongly very what the months be happened better gets last on cohorts, restrictive price customer loyal particularly that However, you very medium, run, over important repurchase. the is really in is cohorts, markdowns. on indicates feel of Focus supports you the long that Focus

scenarios that struggling promos. in other which cause, October, while continued situations the time with September, is reported believe in significant last and players frame negative of have we financial we I disruptions exactly starting can mean two just with so that may year, markdowns strong seen players at see numbers. And actually November, I what

if there even these some players we cash very continue for clear. a scenario So operate And of saw outcome feel therefore, is to some struggle we We and ours, for other short-term not well-positioned, where But the and is strategy players. that outcome is continue that to is feel the strategy needs. short-sight.

Best you. Thank regards.

you, Thank Oliver.

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

open. is line Your

Hi. Yes. my questions of end. couple from A

So one top line. is on the

target growth a of in on to X% the XX% sales order base coming need of Now, half, which achieve is which given is XX% growth second last growth, that to your X% -- you year. are around X% already for in to XX% HX, we at

seeing when and in growth? So are you are that are that the January you expectation, that's say, sales implying with February first or low double to GMV digits, So you like your high say single line question.

could most that. like have what I things the what from you Kliger color? on throw in and likely is gross I margin, the mean, understand CPM brands Second given has X, some quarter would underperformed, this is, reported

on margin So on that. was how the XP you. any color Yes, Thank so year-over-year?

will question, you're question you in Thank first full have your you very Martin. the of margin -- control your On much. to defer mathematics. I

at acceleration stated. the low implies achieve statement achieve of exactly our And guided to line end. you the guidance, our confirm we true. the top ranges couple an absolutely growth what at HX that of will The least that complies weeks confidence So our just first

So, confirm your Abhinav. Thanks. I calculations, can

Yes.

basis then the the help gross weakness gross of apart profit lower profit in those gross the completely right attack margin a is effect effects basis numerical gross called the margin, operating a the CPM margin out gross as market overall CPM the that we profit it's slippage, the insulate XXX slippage XX effect also gross saw the the decline an profit share, And and to financial to mathematical decreasing the non-CPM is happy you. margin that has number that to gross On But points is part operating the effects. brands as of referring is is more if XXX And you part. basis in to and which margin effects. and that relation you the sales margin, And I calculation corporate is same that commission, there, you're net of the points. of sales. also the has And from the of then margin basically the XX net one to Abhinav, in called financial given to with the in the the development, points in margin as the the effect. see, it And slippage decreases, share out this that operational easy about into XXX%. then

absolute the number. which gross whether is relate can out with XXX shifts gross you more decrease, a quarters what you the were a then come the profit profit CPM in If you calling effects, to independent financial other is of also our performance. to GMV then wholesale and brand overall point basis on or line, between And

XX I came XX the operations and Got that it. to impact Got points And CPM. you due I XXX point mean, it. to from the remaining mean, -- was said basis the the basis

it other I came from the were technical like? mean, rest So like factors mostly or -- they what

is CPM remainder margin basis from shift to to And gross is -- from reduced basis slippage the in then is that overall XX also XX, basis The the reduce. the financial topics. Exactly. those therefore, profit points quarters. XXX points. of gross the points. down with expected inventory I around of Special are And line is effects also gross points the margin write-downs, with other profit slippage, XXX slippage there points points basis XXX margin operating of down basis operating between points basis going XXX and of basis XX share, mean to is going XX reduction of message the overall points basis overall XXX effects,

given reduction in core improve we message And that will of this the all very complicated that so, get the gross lower, expect situation. technicalities will the 'XX Spring/Summer profit margin is

position and in the our Given giving market, strong our top customer focus.

and to we in an gross the obviously, improvement situation. that profit will So that happen expect next quarters in in this see

Got Thank providing Thanks color. detailed clear. for you. it. the Very

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

Your line open. is

I all this how confident the about strongly and the questions. strongly is about my taking for Thanks guess guide you are how or guide.

of gross QX margin In in at continued fiscal talking slippage understand, guide, your profit I margin gross want to year. just you're was look when the terms XX.X%. of the about in we fiscal remainder margins, and 'XX gross

So going able basis QX to 'XX, target. XXs the be if continue high to need XX% to is gross margin you high that your on in margins to to year-over-year fiscal slip than then to your lower the much growth would a gross X% hit be

couple on here? A the shifting X.X be X% slippage I don't is to I see sheet. is still things. we One to So to banks. of of how want gross balance profit should the And the whether EUR of liabilities million expecting I XX then -- And a see to viable? much million. understand XX%

X.X So And than talk EUR being banks payables other higher Thank what I about liabilities driving to on see as you where trade well million as is QX balance is the you. the sheet? Can then other that? liabilities levels. also remaining and significantly

on to do specifics. Kunal, this. happy I'm talk No, to happy those

utilization you're completely the So, of revolver, right. the

called revolver million, out a are rental basically, EUR You It's that and contract guarantees. X.X utilization the with of guarantees. rest the

the sheet. not obviously, balance revolver, why not against it's goes on it cash-driven, the but that's So and it's

as with of is quick already very the rightfully the saw the it level. on Second, trade so. also line in and also, growth payables always But inventory that increase, you

trade guidance. that, payables guidance, to the course, QX the gross a comfortable is to improvement QX. Yes, in So margin in with position, also we that overall end inventory of implies on profit as completely in position trade the And by good And in XX%. brands. ratio. the certain terms now, new we also And out gross level called you're situation at We gross where as target obviously, payment a right have. trade a for different feel for we absolute called mathematics. payables proper at just overall on of on it's I relation and to and And for payables your that of driven our margin. guidance lower right. That now, call of relation right. a gross And of of situation the confirmed XX% looking confirmed And X% the different are guided profit slippage, profit inventory that an yes, XX% a completely with the in margin gross profit growth, And It's spring/summer guidance we question earlier, very we margin. situation first is, 'XX, with I situation out the inventory.

And Jefferies. next Anderson from of Blake the from your line comes question

open. line Your is

the about aspirational talk to trends. Wanted morning. good Hi, customer

You pandemic? talked to you of you how those are I'm consumers have quarters? And to much then promotions? about getting seeking recent how such just planning the price still share a little during capture versus bit try as previously, wondering better. they are they are sensitive How versus the

address. to Happy you. Thank

reason So They again, always looking is This season absolutely as for and Oliver This on glimmer stronger perceived right. discounts. are The is than a aspirational Chen they positioned, This continuing. you're is historically deals. And customers sale. QX. looking is why a or for are economic it's pressure their QX. situation are also

spending focused So are our customers, our on big ones. we totally top

the is winning customers strategic science dependent on on of on overall and share motion that, may reduces. from the back intensity pressure other then are now so So for that really no market for that pressure significance customers. coming market, aspirational focus and back the aspiration strategic the the players is there The directional reduce some

remains and big start the far far order strongly as higher wardrobe-building the to better focus better loyalty economics Our value. have on ratios the average have that spenders

curious secular to categories that spend Thanks leaning the recent do then then And ask luxury last the on benefit big of next Got it. fashion you years? shifting maybe of on how for do online. versus How take over your more. That's trend much. expect years? from see calendar if penetration could I And And so you that a XX couple months? you're seeing trends helpful. that into One changing or was XXXX, you're two any

we're So Very happy to address. helpful.

start question. with me Let the second

'XX best go sort bit a in online So, data jump of normalization of source, the a available was if we after with a penetration.

If you 'XX the purely digital from at to 'XX. look dropped penetration luxury luxury,

fully XX% 'XX So XX% This and will Altagamma 'XX. The a from will XX% XXXX. on to source Bain we be to intact. is some digital data slight by longer-term this decrease year the relying to at penetration in that increases XX%. significant view, after again, predicts up go

other what our gaining that people business of sort will even trend, points model. even shares the up, therefore, support force. online the players. business no the is continue And is from are consumer at this price most are time coming to pressed, very to are people beyond that goes our the the because market proposition. comfortable continue hurdles, convenience affluent points are And and down and to up. support of goes trend driving problem shopping consumer And We'll So benefit are and of we price ease tailwind from home, trends shop the of behavior, also luxury, time-constrained,

the the continue really that going our to decline also And In two that terms consumers market for categories see These on and shoes trends, we continue ready-to-wear improve. in traveling, better focus of suffered core We bags. as from for for category experiences, on top hope the looking fashion starts trend or slowdown. more see to to some were from the out. is desperately for to we lot a growth customers, the ready-to-wear as

the leaning there such for are trend ski, for key facilities on summer static quite the clearly and make trend really Stylistically, Wardrobing that. occasions luxury is course. will remain be in it marketing-focused subtrends, So, back. our be And wardrobing or a come purely will for it colorful, vacation. then are buyers more more occasions, it of it

holds on we always then quite luxury fashion the these cycles. that down, But has toned gone 'XX. on one, still for year think trend I through expect as the calendar second

need more of industry type be exuberant more good see that also the need aesthetics, your impetus wardrobe. will will changing the these for because we color We cycles. and We for way. And

So, we materials, lean but brands outstanding fabrications. outstanding on with the for moment, high-end with the in heavily

this prime of trend. called out, is brand like a Cucinelli a we example As really Brunello

Got Best you. of luck. it. Thank

Thank you.

our us. our conclude all does session and Martin for I thank day. of joining This you would to rest today. that conference speakers, today's Q&A today's for And now Michael Enjoy concludes your for presentation. like And thank call. the

disconnect. now may You