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Mytheresa: Our Update For This Promising Company

Oct. 03, 2021 7:29 AM ETMYT Netherlands Parent B.V. (MYTE)17 Comments
Vladislav Kolomeets profile picture
Vladislav Kolomeets


  • MYTE continues to grow its customer base and revenue, and the market potential remains enormous.
  • Due to the growing customer base and decreasing CAC, the company can reduce selling & marketing expenses as a percentage of revenue in the long run.
  • The Curated Platform Model could be an important driver for business revaluation as MYTE becomes more like a marketplace than a retailer.
  • CPM implementation can significantly optimize inventory management and improve capital efficiency.
  • According to our valuation, the upside potential to the fair price is over 30%. We maintain a bullish position in stocks.

Сток фото женщина покупает платье онлайн с телефоном и кредитной карты с дивана у себя дома

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Investment Thesis

In the previous article on Mytheresa (NASDAQ:NYSE:MYTE), we formed a bullish position. Our thesis was based on market potential, positive financial performance, and low business valuation:

I like growing companies with a

This article was written by

Vladislav Kolomeets profile picture
It is generally accepted that the increase in the number of securities in the portfolio certainly leads to a decrease in the total investment risk. This statement, originated in academia, is built on two important assumptions: investment opportunities must have the same mathematical expectation (range of all possible relative outcomes including negative, taking into account the probability) and not to have cross-correlation (i.e., the movement of some securities should not repeat the movement of others).However, this does not happen in life, and we are forced to work hard to find attractive opportunities for capital investments. Let’s say we have two companies with the same expected return, but one carries a risk of capital loss of 5% (suppose that risk is measured exclusively quantitative indicators, although this is not the case), and the second - 1%. Wider range of expectations of the first company only increases the overall risk portfolio. We prefer to focus on a few companies with high potential growth and near-zero risk of loss invested capital rather than excessive diversification that only reduces profitability and increase the risk. In other words, investment is by no means solving a math exercise. Investment is a gold washing process (it is desirable that the prospector also possessed Picasso's view on everyday things). Another question is where to find gold? If you want to beat the market, you have to look where the other 99% of the market participants do not. We research undercovered stocks from around the world looking for growth, deep value, and distressed companies.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MYTE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (17)

@Kolomeets Investments whats your opinion on MYTE now, the last two days it’s down %18 i have some money in it, what’s your opinion on it?
Vladislav Kolomeets profile picture
@my Capital The growth has slowed down, the margin is unstable, but cash from operations is okay. I would say MYTE is hold at the current price.
@Kolomeets Investments Thanks for the reply, what caught my attention is that it was down 25 - 30 % in a week, I’m holding on to it, as i think it’s a solid company, if i may ask at what price do you consider it a buy?
Gumption13 profile picture
The market has this one priced so wrong. Supply chain issues are transitory.
Back up the truck. MYTE is a great way to get some profits from luxury sales of private company goods from Christian Louboutin, Armani, Cucinelli, and others. And also from those publically traded companies that are harder to purchase stock in such as Moncler.
@Christian Louis Boutin if i may ask you, do you still believe in this company, and if so why has the stock been dropping so much?
Gumption13 profile picture
@Y Ungar The market doesn't understand this ultra-high net worth customer that MYTE focuses on. I've witnessed these buyers first hand. During the darkest days of the pandemic when people were not shopping and malls were closing, my wife was working at LV and then Hermes, and those wealthy folks were shopping like they were possessed. The ultra-high net worth social-economic group spending habits are much different from everyone else's—when they're sad, or feeling blue they shop... Hence why this company has had 48% gross margins for the past 5 years. The market has this one wrong in a major way. Time will prove it.
@Y Ungar This is about the action of the whole e-commerce share market. Not particular about MYTE, it is market sentiment. Look at FTCH, ETSY, SE, Ozon ... ETSY was $300 at 28 Nov`21, now it is $126. I think that at least for luxulary e-commerce this is temporary.
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