LuxExperience B.V. (LUXE) Q2 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed outlook. Positive elements include strong growth in the U.S. market, improvement in full price sales, and strategic transformation plans. However, concerns arise from unclear responses about potential U.S. market disruptions and the ongoing transition phase with significant cash outflows. The cautious guidance and mixed performance across regions balance the positive growth narratives, leading to a neutral sentiment.
Key Financial Performance
Mytheresa net sales EUR 242.7 million in Q2 fiscal year '26, an increase of 8.8% year-over-year. Growth attributed to focus on wardrobe building luxury customers, high-quality service, and exclusive product launches.
Mytheresa gross profit margin 52.3% in Q2 fiscal year '26, up 140 basis points year-over-year. Improvement driven by increased full-price sales.
Mytheresa average order value EUR 824 in Q2 fiscal year '26, up 12% year-over-year. Reflects success in selling high-end luxury products.
Mytheresa top customer base growth 13.5% increase in Q2 fiscal year '26 compared to the prior year. Driven by focus on high-spending customers.
Mytheresa adjusted EBITDA margin 9.3% in Q2 fiscal year '26, up 200 basis points year-over-year. Improvement due to cost savings and strong top-line growth.
NET-A-PORTER and MR PORTER net sales EUR 277.1 million in Q2 fiscal year '26, a decline of 1% year-over-year. Sequential improvement from Q1 fiscal year '26. Decline attributed to prior leadership's low investment in merchandise and shipping network issues.
NET-A-PORTER and MR PORTER average order value EUR 861 in Q2 fiscal year '26, up 13.6% year-over-year. Reflects improved customer engagement and focus on high-value products.
NET-A-PORTER and MR PORTER adjusted EBITDA margin -0.7% in Q2 fiscal year '26, a significant improvement from -6.9% in Q1 fiscal year '26. Improvement due to cost discipline and operational efficiencies.
YOOX net sales EUR 125.3 million in Q2 fiscal year '26, a decline of 7.5% year-over-year. Decline due to focus on core business and deprioritization of high-cost overseas markets.
YOOX average order value EUR 255 in Q2 fiscal year '26, up 11.4% year-over-year. Reflects focus on profitable customer cohorts.
YOOX adjusted EBITDA margin -6% in Q2 fiscal year '26, an improvement from -18.1% in Q1 fiscal year '26. Improvement due to cost reductions and operational efficiencies.
LuxExperience Group net sales EUR 1,202 million in the first 6 months of fiscal year '26, a growth of 1.1% year-over-year. Growth driven by Mytheresa's performance and improvements in other segments.
LuxExperience Group adjusted EBITDA margin 2% in Q2 fiscal year '26, first positive margin since YNAP acquisition. Improvement due to cost initiatives and operational efficiencies.
LuxExperience Group operating cash flow EUR 118.5 million in Q2 fiscal year '26. Positive cash flow driven by seasonality and cost management.
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Operating Highlights
Mytheresa exclusive collections and campaigns: Launched exclusive collections like Dolce & Gabbana holiday collection, Christian Louboutin, Roger Vivier, and Etro holiday capsule collections, and exclusive prelaunches for Studio Nicholson and Aaron Levine's collection for menswear.
Mytheresa physical experiences: Hosted curated experiences such as a gala dinner with Bottega Veneta in Venice, style suites in various cities, and immersive shopping experiences in Asia, the U.S., and Europe.
NET-A-PORTER and MR PORTER exclusive launches: Launched exclusive capsules with Manolo Blahnik, Victoria Beckham, Rabanne, and others, along with private seasonal digital pop-up shops.
YOOX community events: Organized events like a holiday fashion dinner in Milan and a Fashion Meets Art event in Berlin to boost engagement and brand connection.
Mytheresa U.S. market growth: Net sales in the U.S. grew by 22.9% in Q2 FY26 compared to Q2 FY25, accounting for 23.3% of total business.
European market performance: Excluding Germany and the U.K., Mytheresa's net sales grew by 7.3% in Q2 FY26. YOOX's European net sales increased by 13.9%.
Group-level financial performance: Net sales grew by 1.1% reported and 5.7% on a constant currency basis. Adjusted EBITDA margin reached 2%.
Cost efficiency: SG&A cost ratio decreased to 19.1% in Q2 FY26, with significant cost-saving measures implemented across segments.
Inventory management: Mytheresa's inventory levels decreased by 2.5% despite double-digit top-line growth.
Transformation plan progress: LuxExperience is on track with its transformation plan, targeting EUR 4 billion in net sales and an adjusted EBITDA margin of 7%-9% medium term.
Focus on full-price selling: Strategic shift to emphasize full-price luxury sales across Mytheresa, NET-A-PORTER, and MR PORTER, leading to improved gross profit margins.
YOOX business restructuring: Focused on a lean operating model and profitable customer cohorts, deprioritizing high-cost overseas markets.
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Risk or Challenges
Market Conditions: The company faces challenges in the U.S. market due to new tariff situations, which have increased shipping and payment costs. Additionally, the overall market is described as soft, which could impact growth.
Competitive Pressures: The luxury sector is experiencing seismic shifts, with many competitors unable to deliver profitable growth. This creates both opportunities and risks for LuxExperience to maintain its leadership position.
Regulatory Hurdles: The U.S. tariff situation has increased operational costs, particularly in shipping and payment, which could affect profitability.
Supply Chain Disruptions: Improvements are still needed in the global shipping network and stock allocation for NET-A-PORTER and MR PORTER, which have been cited as factors affecting sales performance.
Economic Uncertainties: The company is operating in a soft market environment, which could impact consumer spending and overall growth.
Strategic Execution Risks: The turnaround plans for NET-A-PORTER, MR PORTER, and YOOX are still in progress, with risks associated with achieving profitability and operational efficiency within the planned timelines.
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Guidance & Outlook
Medium-term group net sales target: EUR 4 billion with an adjusted EBITDA margin of 7% to 9%.
Mytheresa growth expectations: Continued double-digit growth and high profitability, with a focus on full-price high-end luxury products.
U.S. market growth for Mytheresa: Net sales growth of 22.9% in Q2 fiscal year '26 compared to Q2 fiscal year '25, with the U.S. accounting for 23.3% of total business.
NET-A-PORTER and MR PORTER turnaround: Sequential improvements with a focus on full-price selling and cost discipline. Expected continued GMV and net sales growth in the second half of fiscal year '26.
YOOX business focus: Focus on healthy core and European markets, with expected return to adjusted EBITDA profitability in 12 to 15 months and top-line growth in fiscal year '27.
Group-level financial targets: Targeting EUR 4 billion in net sales and an adjusted EBITDA margin of 7% to 9% medium term.
Cash flow expectations: Operating cash burn expected to stay well below EUR 150 million for fiscal year '26, with break-even on operating cash level in two years.
Guidance for fiscal year '26: GMV and net sales expected between EUR 2.5 billion to EUR 2.7 billion, with an adjusted EBITDA margin of -1% to +1%.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Which regions or divisions performed better than expected in terms of revenue, and how does Europe compare to the Americas?
A:Europe showed good traction with 14% growth, particularly in the off-price market sector. The Americas, especially the U.S., showed strong performance with Mytheresa achieving 25% growth in the U.S. in Q2 (over 30% in constant currency). Asia presented a mixed story, but the Arabic Peninsula showed good growth opportunities.
Q:Are you expecting full price selling to continue to fuel gross margin expansion at Mytheresa?
A:Yes, management expects full price selling to continue driving gross margin expansion. They believe there is still room to improve the full price share to pre-COVID levels.
Q:What progress has been made on SG&A cost ratios, and how is the strategy being balanced with customer-facing service?
A:Significant progress has been made, including consolidating warehouses, customer care centers, and photo studios. Structural changes, particularly in technology, will take time. The transformation is on track and expected to complete by the end of 2027, with a medium-term target of 7%-9% EBITDA margin.
Q:What is the profitability outlook for Mytheresa in H2, and how does it compare to H1?
A:Profitability in H2 is expected to be around the same level as H1, at 6.5% adjusted EBITDA margin, an improvement from 5.2% in H2 of the previous year. This is driven by increased gross profit from a higher share of full price sales.
Q:How did revenue trend relative to guidance this quarter, and what are the expectations for the second half?
A:Revenue guidance is driven by all three segments. Mytheresa achieved 11.6% GMV growth in H1 and is expected to have high single-digit growth in H2 and the full fiscal year. NET-A-PORTER and MR PORTER are expected to show sequential improvement, with low single-digit decline for the fiscal year. YOOX is expected to see a low-teens decline in net sales for H2 and the fiscal year.
Q:How is the portfolio positioned to capitalize on market share globally and acquire new customers?
A:Mytheresa is well-positioned, showing over 20% growth in the U.S. for two consecutive quarters. NET-A-PORTER and MR PORTER have strong brand awareness and are improving operations, such as same-day delivery in Greater Manhattan. The focus is on presenting the best selection, curation, and full price selling.
Q:Where does the luxury industry stand in terms of its cycle, and what are the trends among aspirational and high-net-worth consumers?
A:The luxury industry is transitioning from a digestion phase to a growth phase, with double-digit growth expected in 2026. High-net-worth consumers are driving growth, and new creative collections from major brands are expected to boost the market.
Q:Are there changes in the pricing architecture or price points that consumers are gravitating towards?
A:There is currently a pause in price increases after a phase of significant hikes. Growth is primarily seen in high-end items from major luxury houses, while the contemporary aspirational segment shows early signs of progress.
Q:What is the timeline for EBITDA margin improvement and the transformation plan?
A:The transformation plan targets 7%-9% adjusted EBITDA margin by fiscal years 2029-2030. Sequential improvements are expected, with fiscal year 2026 being a key transition year and fiscal year 2027 showing further progress.
Q:How does guidance account for potential disruptions in the U.S. luxury department store sector?
A:Management believes in focusing on full price selling for sustainable profitability. They expect market share gains in the U.S. regardless of disruptions, as their model emphasizes inspiration, service, and curation.
Q:What progress has been made in inventory management, and what is the current state of inventory?
A:Mytheresa has healthy inventory levels with good aging structure. NET-A-PORTER and MR PORTER are increasing inventory to support growth, while YOOX has reduced inventory. Overall, inventory levels are in line with expectations and support the transformation plan.
Q:What drove the 6% growth in luxury YNAP, and what are the expectations for the second half?
A:Growth was driven by top spenders, double-digit AOV increases, and reduced promotions. The focus on full price selling contributed to both top-line and margin improvements. Better traction is expected in H2 with new fall/winter collections.
Q:What is the timeline and shape of operating cash flow improvement?
A:Fiscal year 2026 is a key transition year with significant cash outflows. Fiscal year 2027 will also be negative, but operational cash flow is expected to break even in two years. The transformation plan is fully funded and supported by a strong balance sheet.
Q:Review of Unclear Management Responses
A:Management avoided directly addressing the potential impact of U.S. luxury department store disruptions on their guidance, providing a general statement about their focus on full price selling and market share gains instead of specific details.
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Earnings Word Cloud
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LUXE Transcript
LuxExperience B.V. (LUXE) Q2 2026 Earnings Call Transcript
Unknown2-10
The earnings call presents a mixed outlook. Positive elements include strong growth in the U.S. market, improvement in full price sales, and strategic transformation plans. However, concerns arise from unclear responses about potential U.S. market disruptions and the ongoing transition phase with significant cash outflows. The cautious guidance and mixed performance across regions balance the positive growth narratives, leading to a neutral sentiment.
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
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LUXE Slides
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