Almost half of MyTheresa customers in the US and Germany spend tens of thousands on luxury items annually: Cowen


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Cowen analysts surveyed customers in the US and Germany who shop at the upscale e-commerce site MyTheresa, and found that around 45% typically spend more than $ 30,000, or € 30,000, a year. The study also found that the site has high customer loyalty, with around 90% saying they are likely to recommend MyTheresa to others.

MyTheresa is one of the ecommerce retailers that has recently gone public, and the stock debuted in January. The parent company of Mytheresa Group GmbH is MYT Netherlands Parent BV MYTE, + 5.73%. “We like MyTheresa’s consistent execution reflected in consistent active customers, revenue, and profitability growth from fiscal 2018 to present, as well as 100% brand retention that is key to sourcing,” wrote analysts led by Oliver Chen. Analysts note that MyTheresa is a $ 600 million platform with the potential for long-term revenue growth of more than 20%. Read: Germany-based MyTheresa Joins Growing List of Publicly Listed Ecommerce Retailers “In addition to consistency, MyTheresa is positioned as a key beneficiary of global luxury that goes online; Cowen estimates that the global online luxury market will grow + 25% CAGR [compound annual growth rate]. “Cowen kicked off the outperformance of MyTheresa stock with a $ 40 price target. JPMorgan analysts say MyTheresa has a” chance to own e-commerce growth in early entries within the little online luxury retail sector penetrated. “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, -1.26% and Nordstrom Inc. JWN, + 0.89%, which sells online in addition to its traditional department store locations. See: Ralph Lauren cutting 30% of North American corporate office space, closing stores worldwide. Its highly curated product offering and disciplined approach in the high-end luxury segment, ”wrote JPMorgan.“ On the product side, MyTheresa facilitates an efficient purchasing process for its time-constrained consumers. po, with a focus on quality over quantity, making it easier for consumers to find the best product in a short space of time. ” JPMorgan started overweight MyTheresa shares with a price target of $ 38. UBS, which started MyTheresa in neutral, highlights the risks of the stock. “Risk factors include competition from the luxury industry, a concentrated supply base, a concentrated customer / buyer base, and the complexities of an international presence,” the note says. Still, UBS is “constructive” about the opportunity for the retailer as heads of online luxury. MyTheresa shares rose 5.3% in Tuesday’s trading. The shares began trading at $ 35.85 and closed at $ 31.34 on Friday.