MyTheresa IPO: What We Know

mytheresa ipo

After rumors began circulating last month, the MyTheresa IPO is official.

The German retailer of luxury goods has announced that its parent company has filed for an American initial public offering, with a valuation of $150 million.

Reportedly, this valuation is indicative of the retailer’s desire to penetrate the American market even further in the wake of the COVID-19 pandemic.

MyTheresa IPO: A Lower Valuation Than Initially Thought

Back in November 2020, Reuters believed that the MyTheresa IPO would come with high valuation, putting it in the rarified air of “unicorn companies” like Match, with super-high valuations in the billions of dollars.

“The number of American depositary shares to be offered and the price range for Mytheresa’s proposed offering have not yet been determined, its parent company, MYT Netherlands Parent B.V, said in a statement,” the outlet reported at the time.

“The firm, which sells clothes from 250 of the world’s biggest fashion brands including Prada, Gucci, Burberry, and Dolce&Gabbana, may seek a valuation of $1 billion to $1.5 billion.”

mytheresa ipo

The ultimate valuation, however, was going to be based on the success (or failure) of the holiday season. MyTheresa, however, enjoyed a sales boom thanks to the COVID-19 pandemic, as did most online retailers, and its success was boosted thanks to the Chapter 11 filings of such former retail juggernauts as Neiman-Marcus, Barney’s, and Lord & Taylor.

But the MyTheresa IPO filed earlier this week showed a much lower valuation. So what happened?

Increased Sales Helped

Even though the German retailer reported an increase in sales over the past three months, there’s a good chance that its losses from the previous year contributed to the lower valuation with the official MyTheresa IPO.

“Mytheresa, which sells clothes from the world’s biggest fashion brands including Prada, Gucci and Burberry, reported net sales of 126.4 million euros ($154.32 million) in the three months ended Sept. 30,” reports The Business of Fashion.

“The German online retailer also posted a net income of 9.6 million euros versus a loss of 4.3 million euros a year earlier.”

So, there’s a good chance that this loss contributed to a lower valuation.

The outlet also reports that MyTheresa will be listed on the New York Stock Exchange under the symbol MYTE, and that Morgan Stanley, J.P. Morgan, Credit Suisse, UBS Investment Bank, Jefferies and Cowen were the underwriters to the IPO.

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