Luxury retailer Mytheresa is pressing ahead with plans to expand in the Middle East, despite ongoing conflict in the region.
New chief executive Francis Belin said the business remains focused on the long-term opportunity in the market, even after recent disruption to tourism, shopping and logistics.
The Middle East currently accounts for just under 10 per cent of Mytheresa’s revenues, but Belin said the retailer is considering further investment in the region through marketing, personal shopping and events.
Belin, who took over as CEO in January, said Mytheresa remains optimistic about the Gulf despite recent instability, taking a long-term view of growth opportunities in the region.
The comments come at a time of major upheaval in luxury retail, with several high-profile players struggling over the past two years. Farfetch and Matchesfashion both collapsed at the end of 2024, while Saks Global filed for bankruptcy this year.
Mytheresa, however, has emerged as one of the more resilient operators in the space, supported by its full-price model, affluent customer base and improving profitability.
The Munich-based retailer, which stocks around 250 luxury brands including Prada and Brunello Cucinelli, said it experienced a few days of shipping disruption in the region at the start of the conflict involving the US, Israel and Iran, but has since continued deliveries without major issues.
Belin has stepped into the top job as Mytheresa enters a new phase under parent group LuxExperience, which was created after the retailer acquired Richemont’s Yoox Net-a-Porter division last year. Former CEO Michael Kliger now leads the wider group.
Mytheresa reported net sales of approximately £211.4 million for the quarter ended 31 December, up 8.8 per cent year on year, while adjusted EBITDA rose by nearly a third to around £19.7 million.
Alongside geographic expansion, Belin is also looking to grow categories such as menswear and jewellery to broaden Mytheresa’s offer beyond its traditional strength in womenswear and accessories.
The retailer’s model remains centred on full-price luxury, high-spending repeat customers and close brand relationships, with gross margins of around 50 per cent helping to fund logistics, marketing and exclusive client events.
That strategy has also allowed it to differentiate itself from discount-led platforms. While Yoox serves off-price luxury shoppers within the wider LuxExperience group, Belin said Mytheresa remains firmly focused on serving customers willing to pay full price for premium products and service.
He also said there was limited overlap between Mytheresa and sister platforms Net-a-Porter and Mr Porter, with each maintaining separate buying, communications and customer engagement teams.
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