LUXE — LuxExperience B.V.

Summary of LuxExperience Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Net Sales Growth: Group net sales increased by 1.1% year-over-year, with a 5.7% increase on a constant currency basis.
• Adjusted EBITDA: Positive adjusted EBITDA margin of 2% for the group, marking the first positive EBITDA since the acquisition of YNAP.
• Operating Cash Flow: Strong operational cash flow of EUR 118.5 million in Q2, with a cash burn of only EUR 30 million for the first half of the fiscal year.
• Segment Performance:
  • Mytheresa: Net sales grew by 8.8%, with a gross margin increase of 140 basis points to 52.3%.
  • NET-A-PORTER and MR PORTER: Combined net sales declined by 1%, showing sequential improvement from a 10.8% decline in Q1.
  • YOOX: Net sales declined by 7.3%, but showed improvement from a 16.6% decline in Q1.

2. Strategic Updates and Business Highlights

• Transformation Plan: The ongoing transformation plan is on track, targeting EUR 4 billion in net sales and an adjusted EBITDA margin of 7-9% in the medium term.
• Mytheresa Success: Continued strong performance driven by a focus on full-price selling, with significant growth in the U.S. market (22.9% increase).
• Customer Engagement: Mytheresa hosted exclusive events to enhance customer loyalty and brand partnerships, showcasing a strong community focus.
• YOOX Restructuring: Focus on core profitable segments and discontinuation of unprofitable marketplace models, leading to improved customer satisfaction metrics.

3. Forward Guidance and Outlook

• Fiscal Year 2026 Guidance:
  • GMV and net sales expected between EUR 2.5 billion to EUR 2.7 billion (up from previous guidance of EUR 2.4 billion to EUR 2.7 billion).
  • Adjusted EBITDA margin guidance revised to a range of -1% to +1% (previously -2% to +1%).
• Segment Expectations: Mytheresa is expected to continue high single-digit growth, while NET-A-PORTER and MR PORTER are projected to stabilize and improve in the second half of the fiscal year.

4. Bad News, Challenges, or Points of Concern

• Declining Sales in NET-A-PORTER and MR PORTER: Despite sequential improvements, these segments still reported a year-over-year decline in sales.
• YOOX Performance: Continued net sales decline, although improving, indicates ongoing challenges in the off-price segment.
• Cash Flow Concerns: Anticipated negative operating cash flow in Q3 due to the effects of layoffs and seasonal business trends.
• Competitive Pressures: Potential disruptions from competitors in the luxury department store sector could impact market dynamics.

5. Notable Q&A Insights

• Regional Performance: Strong growth in the U.S. for Mytheresa, with expectations of continued momentum. Europe is performing well for YOOX.
• Full Price Selling: Management emphasized the importance of maintaining a full-price selling strategy to drive both margins and top-line growth.
• Inventory Management: Healthy inventory levels at Mytheresa, while NET-A-PORTER needs to invest in inventory to support growth.
• Long-term Transformation: The transformation plan is expected to take until fiscal year 2028 to fully realize its benefits, with ongoing efforts to improve SG&A ratios and operational efficiency.

Overall, LuxExperience reported a solid quarter with positive signs of recovery and growth, particularly in Mytheresa, while facing challenges in other segments that require ongoing attention and strategic adjustments.