In this week’s luxury briefing, Kering sliding further into the red while Mytheresa reports a jump in sales. If you have any comments on this briefing or tips for future editions, please email me at zofia@glossy.co.
Kering’s full-year 2024 earnings reflect a luxury powerhouse in flux. Revenue slid 12% to $18.5 billion while recurring operating income plunged 46% to $2.8 billion. Free cash flow from operations clocked in at $1.5 billion — a silver lining in an otherwise challenging year.
Gucci, Kering’s crown jewel, struggled with a 23% revenue drop to $8 billion and a 21% operating margin. Its wholesale revenue fell 28%, while retail fell 21%.
Still, CEO François-Henri Pinault said he remains confident. “Gucci will come back,” he said on the earnings call. “I have absolutely no doubts about this.”
He added, “The long-term health of our brands is not compatible with short-term compromises or quick fixes.”
But not everyone shares his optimism.
A luxury M&A specialist speaking off the record provided a more critical perspective on Kering’s strategy and positioning. “The customer has made a judgment on who is truly luxury and who isn’t,” he said. “Post-Covid, brands like Hermès maintained their luxury status, while others, like Gucci, capitalized on post-Covid spending but may have sacrificed long-term brand equity. Kering saw an opportunity to grow faster, and they took it. But in luxury, you have to play the long game. Otherwise, your company might be hot for three or four years, but then the core luxury consumer moves on.”
Post-Covid, Gucci expanded is entry-level products, ramped up its collaborations and leaned into hype-driven, logo-heavy designs.
Mytheresa reported a different trajectory. The Munich-based e-tailer posted a 13.4% jump in net sales to $263 million for the second quarter of 2025, with adjusted EBITDA up to $17.4 million, a 7.3% margin. Gross profit margins rose to 50.9% thanks to full-price selling and operational efficiency.
The U.S. market grew 17.6% year-over-year, now accounting for over 20% of total sales. Europe followed with a 12.8% boost, while Greater China showed signs of recovery despite macroeconomic headwinds.
“Luxury is a truly global consumer sector which provides a natural geographic diversification. There will always be stronger and weaker regions at any given point in time,” Mytheresa CEO Michael Kliger told Glossy.
He added, “At the moment, the U.S. and the Arabian Peninsula are strong drivers for growth — our highly curated selection of true luxury brands resonates very well with the big-spending U.S. luxury customers looking for multi-brand inspiration. But we strongly believe in the Chinese consumers as they have a very strong desire and understanding for luxury. We are strengthening our efforts in the region to be better known and understood and provide a seamless and convenient shopping experience. Overall, we are well prepared for market recovery in China as we are actively part of the Chinese luxury ecosystem.”
In September 2024, Mytheresa launched its WeChat mini program to expand its reach to Chinese consumers and introduced its Chinese name to highlight its unique positioning. In the coming months, it will host several Top Customer events to further engage with its audience in the region.
Top customers remain central to Mytheresa’s growth, with GMV from this segment up 9.1% and average spend per top customer climbing 13.6% globally — 34.7% in the U.S. alone.
A new focus for the company is fine jewelry. “Since our launch of the fine jewelry and watches category at the end of 2023, we have been extending our offer,” said Kliger, noting that Mytheresa recently launched Bvlgari fine jewelry and watches.
“Our customers are increasingly comfortable with purchasing these pieces and trust us,” he said. “We now sell pieces around €20,000 ($21,500) online. And our personal shoppers focus on pieces between €50,000-€100,000 ($54,000-$108,000). It clearly takes time, but selling fine jewelry online follows the same path we took 15 years ago when we pioneered luxury fashion online. It’s a journey, and we remain focused on building lasting client relationships.”
In the second quarter, the company hosted physical experiences for top customers including intimate New York dinners with Oscar de la Renta and a Zegna-led mountain retreat in the Biella Alps. Next up: an Aspen pop-up with Bemelmans Bar from February 14 to March 2. According to Kliger, the company already has a 2000 person strong waitlist for a table.
Exclusive brand partnerships have also fueled growth. In the second quarter, Mytheresa launched capsule collections with Victoria Beckham, Moncler Grenoble and Miu Miu.
The biggest move on the horizon is Mytheresa’s anticipated acquisition of Yoox Net-a-Porter, set to close in the first half of 2025. The combined companies will be called LuxExperience, trading on the NYSE under the ticker LUXE.
“Mytheresa, Net-a-Porter, Mr Porter, Yoox and The Outnet have each earned a strong reputation in the luxury industry for their pioneering roles in innovation, authoritative editorial voice and curation, and high-quality customer service,” said Kliger. “They stand for clearly differentiated but complementary multi-brand offerings for luxury customers worldwide. They carry a strong heritage and share the same principles, including a strong customer focus, curation and inspiration and the creation of desirability through unique digital and physical experiences. Within the group, we will further strengthen and develop the unique store brands and their identities with dedicated buying and marketing teams.”
As Kering seeks stabilization and Mytheresa accelerates its digital and experiential strategy, the contrast between these luxury players underscores the evolving landscape, where heritage must meet innovation to stay relevant.
Does luxury need Beamble? Another personal shopping app comes to market
In the ever-evolving world of luxury retail, personal shopping app Beamble is the latest contender aiming to bridge the gap between digital convenience and personalized service. Launched in February 2025, the London-based app connects users to in-store advisors via one-on-one video calls, offering the option for ultra-fast delivery within 30 minutes through Uber if the customer is within a 10-kilometer, or six-mile, radius.
“It’s about democratizing a VIP service that’s usually reserved for high spenders,” Sophia Elizabeth Hedjeres, founder of Beamble. “Even with a €100 ($104) basket, you can get the same personalized advice you’d expect from a luxury boutique.” Beamble has already partnered with department stores like Printemps in Paris and plans to expand into Italy, New York and Dubai by the end of the year.
Offering personalized luxury shopping through a digital platfrom is nothing new. In 2020, Gucci launched Gucci Live, offering bespoke video shopping experiences directly from the brand’s Florence-based showroom. And personal shopping company The Floorr, launched in 2021, has partnered with Browns, Luisaviaroma and Farfetch, among others.
“Apps like Beamble bridge the gap between tech and personal service,” said Rebecca Bingley, a luxury retail expert previously at Net-a-Porter. “It’s more concierge, less robot, and that distinction is crucial in the luxury space.”
“Video shopping helps customers better understand fabric, fit and color,” Hedjeres said.
Beamble differentiates itself with features like a 3D store experience, integration with Shopify for seamless brand management, and an assortment that includes young designers and vintage shops alongside established luxury brands. The app plans to expand to New York in April 2025 and Italy by year’s end, with future plans for Miami, L.A. and Dubai.
Beamble is introducing a tiered personal shopper service, offering Basic ($31/hour) for errands, Advanced for stylists and architects, and Expert for celebrity stylists — shoppers set their own rates while Beamble takes a commission. The company is currently in the middle of a fundraising round raise.
EssilorLuxottica bets on smart eyewear for future growth
EssilorLuxottica closed its fourth quarter of 2024 with an 8.2% revenue uptick, hitting $7.2 billion, driven by strong performances in North America and Europe. But the real buzz was around portfolio brand Ray-Ban’s Meta smart glasses, which launched in October 2023.
A high-profile Super Bowl ad for the smart glasses created new interest in the glasses, which have had a tough time gaining traction. The ad featured Chris Hemsworth, Chris Pratt and Kris Jenner and was directed by Matthew Vaughn. Reports indicate that over 90% of purchasers have discontinued using the devices, suggesting difficulties in integrating the glasses into daily routines. But now, they feature new AI-powered capabilities, including real-time translation, visual assistance, memory aids, voice messaging and enhanced music integration, announced in early 2025. On the earnings call, CEO Francesco Milleri called them “the perfect fusion of fashion and functionality.”
EssilorLuxottica is eying mid-single-digit growth in 2025. Another one of its portfolio brands, Oakley, also has smart glasses in the works.
Executive moves
Max Retail, the AI-powered B2B marketplace helping independent retailers turn excess inventory into revenue, has appointed former Moda Operandi CFO Hoddi Hafsteinsson as its new CFO. The move comes after the company’s $15 million Series A funding round last year, which was oversubscribed by 50%, bringing total funding to $25 million on a $65 million post-money valuation.
Hafsteinsson, who helped guide Moda Operandi through rapid expansion, joins Max Retail as independent retailers struggle with mounting excess inventory — an issue that accounts for over $740 billion in unsold merchandise annually. “What excites me most about joining Max Retail is the opportunity to bring financial discipline and strategic growth planning to a company that is redefining how inventory moves in fashion,” Hafsteinsson said.
Max Retail, founded by CEO Melodie van der Baan, has significantly grown, particularly among contemporary and designer retailers. The company is now rolling out new AI-powered features, including automated inventory tagging and “Ask Max,” a chatbot launching in late 2025 to help retailers make smarter inventory decisions. “We’re giving retailers the tools to be proactive rather than reactive,” van der Baan said. “That’s the future of retail.”
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