Luxury Fashion Platform Mytheresa Valued at $2.2b in US IPO

Luxury Fashion Platform Mytheresa Valued at $2.2b in US IPO
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Luxury Fashion Platform Mytheresa Valued at $2.2b in US IPO

Luxury Fashion Platform Mytheresa Valued at $2.2b in US IPO

Munich-based luxury fashion platform Mytheresa said on Wednesday it raised $406.8 million in its US initial public offering (IPO), valuing the e-commerce site at $2.2 billion.

The company said its offering of 15.6 million American depositary shares (ADS) is priced at $26 per ADS, up from its previously planned range of $16 to $18 apiece.

Mytheresa, a digital platform that sells products from luxury fashion brands to customers such as Alexander McQueen, Fendi and Gucci, said in a statement it is selling around 13.6 million ADS and its sole shareholder would sell 2 million ADS.

The company will list its shares on the New York Stock Exchange under the ticker symbol “MYTE” and will begin trading on Thursday.

The IPO proceeds are earmarked to repay debt related to last year’s bankruptcy of former parent Neiman Marcus.

Morgan Stanley & Co and J.P. Morgan Securities are the lead underwriters on Mytheresa’s offering.



Burberry Shows Early Signs of Recovery as 1st Quarter Sales Fall Less than Expected

FILE PHOTO: A Burberry store is seen in London, Britain, January 16, 2023.  REUTERS/Peter Nicholls/File Photo
FILE PHOTO: A Burberry store is seen in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo
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Burberry Shows Early Signs of Recovery as 1st Quarter Sales Fall Less than Expected

FILE PHOTO: A Burberry store is seen in London, Britain, January 16, 2023.  REUTERS/Peter Nicholls/File Photo
FILE PHOTO: A Burberry store is seen in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo

Burberry's retail sales fell by a less-than-expected 1% in the first quarter, it reported on Friday, in early signs of a recovery for the British luxury brand struggling with underperformance.

Shares in Burberry, which have more than doubled since September, rose 5% in early London trade.

Known for its trench coats and check pattern scarves, Burberry is using its British heritage designs to try to win back customers under the leadership of CEO Josh Schulman, who took over a year ago.

Comparable sales returned to growth in Europe, the company said, while trading in the Americas strengthened. Sales fell in China and in the rest of Asia, but the rate of decline was around half the level seen in the previous quarter.

"The improvement in our first-quarter comparable sales, strength in our core categories, and uptick in brand desirability give us conviction in the path ahead," Schulman said, adding that the autumn collection was being "well received".

Burberry has issued several profit warnings in recent years, and as part of its turnaround drive since Schulman took over, it plans to cut a fifth of its global workforce, a radical cost-cutting measure that investors have welcomed.

The 1% drop in overall comparable retail sales in the first quarter, which ended on June 28, beat analysts' forecasts for a 3% decline in a consensus provided by the company, and improved on a 6% fall in the previous quarter.

According to Reuters, analysts at Citi said the brand had reported its third consecutive quarter of like-for-like improvement since Schulman launched its new strategy last November, implying comparable sales could turn positive in the current quarter.

"In a quarter marked by further macro and geopolitical pressures and weaker tourist spending in Europe and Japan, Burberry has likely held up better than peers quarter-on-quarter," they said.