Updated 4:46 p.m. ET May 10.
Mytheresa is working with investment bankers on two fronts, sources told WWD — pitching investors on a buyout that would take the company private, and looking at acquiring Net-a-porter.
A buyout would let the Munich-based Mytheresa rev up its operations away from the glare of Wall Street. And acquiring Net-a-porter, a possibility first reported by The Financial Times, would bolster the company’s operations significantly as it currently ships out of Germany, while Net-a-porter has a complementary distribution system in the U.S. and Asia.
Mytheresa, which is said to be working with bankers at Morgan Stanley and B. Riley as it explores its options, isn’t the only player interested in Net-a-porter.
Sources said private equity company Bain Capital made a bid to buy Net-a-porter in Geneva recently and that the members-only off-price fashion player BestSecret has expressed interest in Yoox side of the business. Compagnie Financière Richemont plans to sell its long troublesome Yoox Net-a-porter operation this year, after its previous deal to dispose of the business fell apart during Farfetch’s meltdown.
With Yoox Net-a-porter slated for sale, Matches stripped down to IP in administration, and Farfetch tucked into Coupang, Mytheresa is one of the few solid players left standing in the luxury e-commerce space.
And the competition looks to be bulking up, with Saks owner HBC in late-stage talks to buy Neiman Marcus and combine the two businesses.
Fashion loves e-commerce, but digital multibrand luxury has proven to be a particularly treacherous space lately, hampered by both the complexities of selling, shipping and accepting returns online, but also competing with the brands’ own websites.
But Mytheresa, which specializes in pinnacle luxury products, has been successfully navigating the market by sticking to that niche.
The company’s third-quarter results are due out Wednesday and during a sneak peek last month Mytheresa said net sales would increase by 15 to 18 percent to 230 million euros to 235 million euros. The company’s adjusted earnings before interest, taxes, depreciation and amortization margin is slated to rise to 3 to 4 percent, up from 1.6 percent a year earlier.
“We are extremely pleased with the strong performance in a rapidly consolidating marketplace,” said Michael Kliger, Mytheresa’s chief executive officer, in a statement at the time. “The results underscore that Mytheresa is not just a luxury e-commerce platform. We build a community for luxury enthusiasts and create desirability through digital and physical experiences. This makes us the winner in an otherwise still-tough market environment.”
But Mytheresa is still not connecting on Wall Street, which has developed something of an aversion to e-commerce since the company staged its IPO in January 2021. While Mytheresa’s market capitalization neared $3 billion shortly after its offering, that has fallen to below $390 million. Shares of the company were roughly flat Friday afternoon, but jumped higher and then closed up 5.8 percent to $4.55 following word of its interest in a potential buyout in WWD.
That stock price still leaves the business ripe for some kind of a deal, to either pique the interest of traders or exit and and build away from the spotlight of Wall Street.
In a statement to WWD, the company said: “Mytheresa is constantly evaluating opportunities to grow our business, which may include M&A activities from time to time. It is our policy not to comment on potential M&A activities, including whether or not any potential M&A activities are under consideration at all.”
Morgan Stanley, B. Riley, Richemont, Bain and BestSecret all declined to comment.
— With contributions from Luisa Zargani and Samantha Conti
