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

United States

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, +6.41%.

“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, -1.25% and Nordstrom Inc. JWN, +0.92%, which sells online in addition to its traditional department store locations.

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“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 5.3% in Tuesday trading. Shares began trading at $ 35.85 and closed Friday at $ 31.34.