LuxExperience B.V. (LUXE) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals mixed results: Mytheresa shows strong growth, but NET-A-PORTER and MR PORTER face declines. Overall group sales declined, but there are positive signs in profitability and margin improvements. The Q&A highlights cautious optimism, with improved EBITDA guidance and growth potential in the U.S. However, unclear responses about regional growth and restructuring risks temper the outlook. The lack of market cap data suggests a neutral prediction, as the positive and negative factors balance each other out.
Key Financial Performance
Mytheresa Net Sales Growth Net sales grew by 12.2% in Q1 fiscal year 2026 compared to Q1 fiscal year 2025. This growth was driven by a focus on wardrobe-building big-spending luxury customers and strong performance in key markets like the United States (21.9% growth) and Europe excluding Germany (14.1% growth).
Mytheresa Gross Profit Margin Gross profit margin increased by 70 basis points to 44.6% in Q1 fiscal year 2026 compared to 43.9% in the prior year period. This was due to continuous efforts to increase the full price share.
Mytheresa Average Order Value The average order value increased by 10.7% to EUR 797 in Q1 fiscal year 2026 compared to the prior year period. This reflects the success of focusing on selling full-price high-end luxury products to top customers.
NET-A-PORTER and MR PORTER Net Sales Decline Net sales declined by 10.8% in Q1 fiscal year 2026 compared to Q1 fiscal year 2025. The decline was attributed to lower merchandise order volumes from the previous year and a focus on full-price selling.
NET-A-PORTER and MR PORTER Gross Profit Margin Gross profit margin improved by 130 basis points to 47.8% in Q1 fiscal year 2026 compared to 46.5% in the prior year period. This was driven by a higher share of full-price sales and one-time effects in the previous year.
YOOX Net Sales Decline Net sales declined by 16.5% in Q1 fiscal year 2026 compared to Q1 fiscal year 2025. This was due to a deliberate focus on profitable customer cohorts and the shutdown of the unprofitable YOOX Marketplace.
YOOX Gross Profit Margin Gross profit margin increased by 400 basis points to 36.5% in Q1 fiscal year 2026 compared to 32.6% in the prior year period. This was driven by previous year destocking initiatives and a higher share of first-price sales.
LuxExperience Group GMV and Net Sales Group GMV amounted to EUR 588.9 million, and group net sales were EUR 557.2 million in Q1 fiscal year 2026, representing a decline of 4.3% and 4.2%, respectively, compared to Q1 fiscal year 2025. The decline was attributed to restructuring efforts and the exclusion of THE OUTNET from core financial performance.
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Operating Highlights
Exclusive Product Launches: Mytheresa launched exclusive styles from Loewe, Max Mara, Brunello Cucinelli, Calvin Klein, Moncler, God's True Cashmere, and ZEGNA's Fall/Winter '25 collections. NET-A-PORTER launched exclusive capsules with Jimmy Choo, Chloe, and Nili Lotan. MR PORTER launched exclusive styles from Bottega Veneta and Eau Fraîche Déprimés.
Customer Engagement Events: Mytheresa hosted events like private diamond master classes, styling sessions, and curated dinners. NET-A-PORTER and MR PORTER hosted dinners and events for EIP customers, including collaborations with brands like Drake and Loewe.
Geographic Expansion: Mytheresa achieved 21.9% net sales growth in the U.S., which now accounts for 22.1% of its total business. Europe (excluding Germany) saw 14.1% growth.
Segment Restructuring: LuxExperience restructured its reporting into three segments: Luxury Mytheresa, Luxury NET-A-PORTER and MR PORTER, and Off-Price. The sale of THE OUTNET assets to O Group LLC was finalized to simplify operations.
Profitability Improvements: Mytheresa's gross profit margin increased by 70 basis points to 44.6%. NET-A-PORTER and MR PORTER improved their gross profit margin by 130 basis points. YOOX's gross profit margin increased by 400 basis points.
Divestment of THE OUTNET: LuxExperience sold THE OUTNET assets to O Group LLC for $30 million, aligning with its transformation plan to focus on core businesses and reduce complexity.
Transformation Plan: The company is executing a transformation plan to improve operational efficiency, reduce SG&A costs, and achieve profitability across all segments by fiscal year '27.
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Risk or Challenges
Macroeconomic headwinds: Despite strong performance in some segments, the company acknowledges ongoing macroeconomic challenges that could impact growth and profitability.
Regulatory approvals for asset sale: The sale of THE OUTNET assets is subject to regulatory approvals and payment adjustments, which could delay or complicate the transaction.
U.S. tariff situation: Increased U.S. customs duties have raised shipping and payment costs, impacting profitability in the U.S. market.
Decline in NET-A-PORTER and MR PORTER sales: Net sales for these segments declined by 10.8% due to lower merchandise order volumes, indicating challenges in inventory management and market demand.
YOOX sales decline: YOOX experienced a 16.5% decline in net sales, driven by restructuring efforts and a focus on profitable customer cohorts, which could impact short-term revenue.
Complexity in transformation plan: The ongoing transformation plan involves significant operational adjustments, technology integration, and organizational changes, posing execution risks.
Cash flow challenges: Negative operating cash flow of EUR 146.4 million in Q1 fiscal year '26, driven by restructuring expenses and seasonal effects, highlights liquidity pressures.
Dependence on high-spending customers: The company's growth heavily relies on big-spending luxury customers, making it vulnerable to changes in consumer behavior or economic downturns.
Inventory management risks: Inventory levels are up 4% at Mytheresa and down 8.8% at NET-A-PORTER and MR PORTER, indicating potential mismatches in supply and demand.
IT and operational downsizing risks: The planned IT downsizing and operational simplifications at YOOX and other segments could disrupt operations if not executed effectively.
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Guidance & Outlook
Digital Luxury Market Growth: LuxExperience is positioned to benefit from the expected further growth of the digital luxury market and ongoing consolidation among players.
Mytheresa Growth: Mytheresa is expected to grow mid- to high single digits for the full fiscal year 2026, driven by a focus on big-spending wardrobe-building customers and exclusive product launches.
NET-A-PORTER and MR PORTER Turnaround: NET-A-PORTER and MR PORTER are expected to show growth in the second half of fiscal year 2026, with a decline by low single digits for the full fiscal year. The medium-term target is an adjusted EBITDA margin of 7% to 9% and a return to 10% to 15% annual growth rates.
YOOX Transformation: YOOX will continue to adjust its revenue base downwards in fiscal year 2026 but aims to return to adjusted EBITDA profitability within 15 to 21 months and top-line growth in fiscal year 2027.
Group Financial Guidance: For fiscal year 2026, LuxExperience expects GMV at around EUR 2.4 billion to EUR 2.7 billion and an adjusted EBITDA margin between minus 2% and plus 1%. Medium-term targets include adjusted EBITDA profitability at 7% to 9% and annual growth rates of 10% to 15%.
Operational Adjustments and Transformation Plan: Fiscal year 2026 is identified as a key transition year, focusing on operational adjustments, technology platform integration, and organizational alignment to achieve sustainable growth and profitability.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What are the strongest signs that the acquisition plan is working so far, and what areas have been surprising?
A:The acquisition plan is on track with positive developments in quality KPIs such as margin, AOV, and spend per top customer. Positive growth is expected for NET-A-PORTER and MR PORTER in 2026. Workforce reductions and SG&A cost reductions have been implemented successfully. No major surprises were encountered due to extensive due diligence.
Q:Were there any changes to the guidance aside from THE OUTNET sale, and can you provide more color on the Mytheresa segment?
A:The guidance was reconfirmed with adjustments for THE OUTNET sale, which accounted for EUR 212 million of net sales. Mytheresa segment is expected to grow mid- to high single digits, reflecting a cautious approach due to the soft market. No specific callouts were made, but strong growth signs are observed in both luxury segments.
Q:What trends have been observed in consumer appetite for luxury fashion, and how have recent creative director changes impacted interest?
A:There is a shift towards bolder, more colorful, and feminine styles, moving away from quiet luxury. Creative director changes have generated more interest, but the impact will be clearer when collections drop in February-April. Quiet luxury brands like ZEGNA and Brunello Cucinelli remain successful. Growth is driven by ready-to-wear clothing, vacation themes, and fine jewelry, with strong traction in digital sales.
Q:What adjustments were made to the EBITDA margin guidance, and what are the primary drivers?
A:The adjusted EBITDA margin guidance improved from -4% to +1% to -2% to +1%. Primary drivers include the transformation plan, new leadership teams, and SG&A cost reductions. SG&A costs decreased by EUR 15 million in Q1 compared to the prior year. Growth in NET-A-PORTER and MR PORTER in the second half of the fiscal year is expected to further improve profitability.
Q:What regional performance trends have been observed?
A:The U.S. is the fastest-growing geography, with 31% of the group's business now in the U.S. Europe (excluding Germany) shows stable growth, while YOOX focuses on its healthy core in Europe. Asia has stabilized at a low level, with potential upside in China, though it is still early to confirm.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the quarterly breakdown by segment and used vague language when discussing market conditions and future growth expectations for certain regions, particularly in Asia and China.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Calvin Klein
EIP dinner
EIPs
EUR GMV
EUR SGA
EUR YOOX
EUR development
Fashion
GMV SGA
GMV sale
Germany term
Group LLC
Hong Kong
Inventory level
KPIs focus
London Milan
MR sign
Milan Paris
New York
OUTNET Price
OUTNET asset
OUTNET cost
OUTNET group
SGA EUR
YOOX SGA
YOOX margin
capsule collection
line decrease
plan SGA
point increase
runway collection
sale decline
share price
volume
LUXE Transcript
LuxExperience B.V. (LUXE) Q1 2026 Earnings Call Transcript
Unknown11-19
The earnings call reveals mixed results: Mytheresa shows strong growth, but NET-A-PORTER and MR PORTER face declines. Overall group sales declined, but there are positive signs in profitability and margin improvements. The Q&A highlights cautious optimism, with improved EBITDA guidance and growth potential in the U.S. However, unclear responses about regional growth and restructuring risks temper the outlook. The lack of market cap data suggests a neutral prediction, as the positive and negative factors balance each other out.
LuxExperience B.V. (LUXE) Q4 2025 Earnings Call Transcript
Unknown9-25
The earnings call reveals declines in net sales and EBITDA margins across multiple segments, despite some positive trends in average order value and Mytheresa's performance. The Q&A section highlights ongoing challenges, such as inventory and marketing issues, and a lack of specific guidance, which may concern investors. The overall sentiment is negative due to weak financial results, uncertain guidance, and management's lack of clarity on resolving key issues.
LuxExperience B.V. (LUXE) Presents At Goldman Sachs 32nd Annual Global Retailing Conference 2025 Transcript
Neutral9-3
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