Shopaholics, unite! Luxury retailer Mytheresa just hit the New York Stock Exchange, trading as MYT Netherlands (NYSE:MYTE). MYTE stock is popping on its first day in the public markets, but not all investors are familiar with the premier name. If you fall into that category, what should you know about the Mytheresa IPO now?
To start, investors should know that Mytheresa emerged out of a luxury boutique. Now a leading name in the world of luxury e-commerce, MYTE stock is looking to capitalize on interest in all things designer.
With that in mind, here is what you should know about MYTE stock and the Mytheresa IPO:
- Mytheresa has been around since 1987 and calls Munich its home.
- It took its first stab at luxury e-commerce in 2006.
- Today, it started trading on the NYSE. Shares are up 26%.
- The company raised $407 million as part of the initial public offering process.
- This is because it offered 15.6 million American Depositary Shares at $26 each.
- Investors should note that $26 was the upper end of a revised price range.
- The Mytheresa IPO was initially eyeing an IPO price range of $16-$18.
- As it comes public, Mytheresa says it is growing and commands financial strength.
- Its net sales came in near $546 million in 2020, representing 18.6% year-over-year growth.
- Investors should note that this growth comes as e-commerce booms and luxury retailers find their footing amid the pandemic.
- Mytheresa carries 200 top brands including Valentino, Balenciaga, Miu Miu and Saint Laurent.
- Initially focusing on women, the company has since launched lines for men and children.
- Additionally, Mytheresa made a big shift from brick-and-mortar to e-commerce retail.
- Within the e-commerce realm, it stands out with personalized touches.
- The company also touts its 72-hour delivery window to 133 countries.
The Mytheresa IPO and MYTE Stock
Although the Mytheresa IPO and MYTE stock certainly look interesting, retail experts point out two things that should give investors pause.
First, Mytheresa has a complicated business history. Neiman Marcus, the department store retailer that entered and exited bankruptcy in 2020, once was the parent of the luxury e-commerce business. Back in 2014 Neiman Marcus acquired it, riding its coattails so to speak. While other segments of Neiman Marcus suffered, Mytheresa delivered growth. This relationship led to two years of chaos and conflict. In fact, as Ben Unglesbee wrote for Retail Dive, the Mytheresa IPO prospectus says the company still faces negative publicity risks because of Neiman Marcus.
Lastly, luxury retail analysts are not so sure that Neiman Marcus is the best pick. Rival Farfetch (NYSE:FTCH) has a larger product assortment and spends less to acquire customers. It also just entered a strategic partnership with Alibaba (NYSE:BABA) and other luxury competitor Richemont.
The Mytheresa IPO and MYTE stock are still worth watching, particularly thanks to the strength in the luxury market. However, as you do your own research, these risks should be part of the equation.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.