LuxExperience B.V. Q2 FY2025 earnings call

• Strong revenue growth and improved adjusted EBITDA in Q2, with positive momentum from previous quarter and H1 FY2025 vs H1 FY2024.
• Focus on high-spending, wardrobe-building top customers, with GMV from top customers growing 9.1% and AOV LTM up 9.5%.
• Key operational highlights include excellent customer satisfaction (Net Promoter Score 83.3%), stable return rates, and improving cost ratios.
• Extensive brand collaborations and physical experiences, e.g., partnerships with Moncler, Victoria Beckham, Bvlgari, and exclusive events worldwide.
• Upcoming acquisition of YNAP to create a global digital luxury platform, with expected closing in H1 2025 and formation of new group LuxExperience.

In the second quarter of fiscal year 2025, net sales grew by 13.4% to €26.4 million. The United States saw double-digit net sales growth of 17.6%, accounting for 20.6% of total net sales. Europe, including Germany and UK, had a 12.8% net sales growth. GMV for all customers increased by 6.3%, and GMV with top customers grew by 9.1%. The average order value (AOV) last 12 months increased by 9.5% to €736. Inventory levels decreased by 1.3% year-over-year with a DIO of 258 days.

• Confirmed full fiscal year 2025 guidance: GMV and net sales growth between 7% and 13%, and adjusted EBITDA margin between 3% and 5%.
• Expect H2 FY2025 to have a similar gross profit margin performance to H1, with stable or slightly increasing margins due to focus on full price sales and targeting high-end customers.

• Macro environment uncertainties impacting the business.
• Continued headwinds in China and Asia due to ongoing macroeconomic conditions.

Q: Top customer profile by region and Greater China trends?

A: Top customers make up ~4% and ~40% of revenue across regions, with higher AOVs in Arabic Peninsula, Asia, etc.; Greater China showing slow recovery due to macro environment, but continuous improvement expected with potential economic stimulus in China.