LUXE Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Group GMV: EUR 588.9 million, down 4.3% year-over-year.
Group Net Sales: EUR 557.2 million, down 4.2% year-over-year.
Adjusted EBITDA: EUR -28.1 million, with a margin of -5%.
Mytheresa:
- GMV growth of 13.5% to USD 245.9 million.
- Net sales increased by 12.2% to EUR 226.3 million.
- Gross profit margin improved by 70 basis points to 44.6%.
NET-A-PORTER and MR PORTER:
- Combined net sales declined by 10.8% to EUR 212.3 million.
- Gross profit margin improved by 130 basis points to 47.8%.
YOOX:
- Net sales decreased by 16.5% to EUR 118.6 million.
- Gross profit margin increased by 400 basis points to 36.5%.

2. Strategic Updates and Business Highlights

Segment Performance: Mytheresa showed strong growth, while NET-A-PORTER and MR PORTER are in the early stages of a turnaround.
Divestiture: Agreement to sell THE OUTNET assets to O Group LLC, allowing LuxExperience to focus on core luxury segments and streamline operations.
Customer Engagement: Mytheresa hosted exclusive events and launched high-impact campaigns, enhancing brand relationships and customer loyalty.
Leadership Changes: New leadership teams at NET-A-PORTER, MR PORTER, and YOOX are expected to drive improvements in performance and profitability.

3. Forward Guidance and Outlook

Fiscal Year 2026 Guidance:
- GMV expected between EUR 2.4 billion and EUR 2.7 billion.
- Adjusted EBITDA margin projected between -2% and +1%.
- Mytheresa anticipated to grow mid- to high single digits, while NET-A-PORTER and MR PORTER expected to show growth in the second half of the fiscal year.
Long-term Targets: Aim for adjusted EBITDA profitability of 7% to 9% and annual growth rates of 10% to 15%.

4. Bad News, Challenges, or Points of Concern

Declining Sales: NET-A-PORTER and MR PORTER experienced a significant decline in sales, attributed to insufficient investment in new merchandise last year.
Cash Flow Issues: Operating cash flow was negative EUR 146.4 million, primarily due to seasonal inventory buildup and restructuring costs.
Market Conditions: The overall luxury market remains soft, impacting growth expectations.
SG&A Costs: Despite reductions, the SG&A cost ratio remains high, particularly for NET-A-PORTER and MR PORTER, which could hinder profitability.

5. Notable Q&A Insights

Transformation Progress: Management expressed confidence in the ongoing transformation plan, noting early signs of improvement in key performance indicators (KPIs) such as margins and customer spending.
Consumer Trends: There is a noted shift in fashion trends towards bolder styles, which may positively influence consumer interest in luxury categories.
Regional Performance: The U.S. market is showing strong growth, accounting for 31% of total business, while Europe remains stable. Asia's performance is stabilizing but at lower levels.

Overall, LuxExperience's Q1 2026 results reflect a mixed performance, with strong growth in Mytheresa and challenges in the NET-A-PORTER and MR PORTER segments. The strategic divestiture and ongoing transformation efforts are aimed at improving profitability and positioning the company for future growth.

LUXE — Emles Luxury Goods ETF

Q1 2026 Earnings Call Summary