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Mytheresa plans to expand its presence in the Middle East despite the ongoing conflict in the region, its CEO has said.
Speaking to the Financial Times, CEO Francis Belin said: “What is happening now is very sad, but we are very long-term in the way we approach opportunities, so I think it is probably an area we should continue to [invest in]. We are already quite successful in the Middle East. How we move it to the next chapter is on my mind.”
The Munich-based company currently generates just under 10% of its revenues from the Middle East. Belin intends to increase spending on marketing, personal shopping and events in the coming years to capitalise on the high concentration of wealthy Gulf clients in the region.
In addition to the Middle East, further investment in Asia, particularly China, will also be targeted despite a depressed market for luxury goods in the region.
Mytheresa said mainland China accounted for “a single-digit percentage” of its overall sales, but was growing by double digits in some regions.
Belin told the FT:s “I think it’s a question for us whether we want to start to invest more. My assumption is yes we will.”
Last November, LuxExperience appointed Belin as the new CEO of Mytheresa. Prior to this, Belin overlooked global Luxury and Asian Art at Christie’s, where he helped “cement Christie’s position as the global market leader”. There he played a key role in securing some of the most important collections and works of art.
News of the regional expansion plans under his tenureship comes as Mytheresa saw adjusted EBITDA rise “significantly” in the second quarter, rising to €22.6m (£19.68m), up from €16.2m (£14.11m) the prior year, as net sales rose by 8.8% to €242.7m (£211.34m), up from €223m (£194.19m).
It also welcomed “outstanding” GMV growth over the period, outpacing the industry, with GMV rising 9.9% from €244.7m (£213.08m) to €268.9m (£234.16m).
At the time, CEO of LuxExperience, Michael Kliger, said: “Over the past decade, Mytheresa has consistently built and grown trusted relationships with its brand partners and customers. These relationships are the foundation of our success.
“Sustainable and profitable growth in luxury comes from providing brands and customers with the very best in service and experience. We know how to engage with true luxury customers through desirability, emotion, exclusivity, and community. As a group we will seize the tremendous opportunities that present themselves to us going forward.”
