Luxury online retailer Mytheresa plans to increase investment in the Middle East despite geopolitical instability, as CEO Francis Belin focuses on long-term regional expansion.
Belin told the Financial Times the company will step up spending on marketing, personal shopping services and client events across Gulf markets, where affluent shoppers already contribute just under 10% of total revenue.
In a statement to the news outlet, 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 move comes amid disruption linked to Iranian missile strikes affecting countries, including the UAE and Saudi Arabia, which have impacted tourism and led some wealthy residents to leave.
Belin previously worked at Christie’s and held senior roles at Swarovski and Jaeger-LeCoultre.
His appointment came amid wider disruption in the luxury retail sector, after Saks Global filed for bankruptcy earlier this year and platforms Matchesfashion and Farfetch collapsed in 2024.
Mytheresa faced temporary shipping interruptions in the region at the beginning of the conflict involving the US, Israel and Iran, but has since restored normal delivery services for Gulf customers.
It operates under the LuxExperience group, established following the acquisition of Richemont’s Yoox Net-a-Porter (YNAP) division, with former CEO Michael Kliger now heading the wider group.
According to the report, the company continues to rely on a selective wholesale approach and a focus on high-spending repeat clients, supported by gross margins of 50%.
It also uses exclusive events to maintain close ties with its core customer base.
For the quarter ending 31 December 2025, Mytheresa reported net sales of €242.7m ($283.8m), an increase of 8.8% year-on-year, while adjusted EBITDA rose to €22.6m, up by nearly one-third.
Alongside its Middle East plans, the retailer is preparing to expand further in Asia, particularly China, where it currently accounts for a single-digit share of sales but is delivering double-digit growth in certain areas.
