LuxExperience B.V. Q2 FY2026 earnings call

Management Statement and Operational Highlights

• The turnaround of ex YNAP shows good results with strong improvements across all 3 business segments. Mytheresa continues double-digit growth and high profitability. NET-A-PORTER and MR PORTER show sequential improvements. YOOX's focus on the healthy core generates clear improvements.
• LuxExperience is the clear digital multi-brand leader for luxury enthusiasts globally. Mytheresa's strong customer base, exclusive campaigns (e.g., Dolce & Gabbana, Christian Louboutin exclusives), and physical experiences (e.g., events with Bottega Veneta, Moncler) drive success.
• NET-A-PORTER and MR PORTER's new strategic focus on customer full price selling and cost discipline leads to sequential improvements, with improved customer satisfaction and digital campaigns.
• YOOX's strategy of focusing on the healthy core and operational fulfillment models shows first results, with improved net sales in Europe and better customer service metrics.

Segment Performance

• Mytheresa: In Q2 FY2026, net sales grew 8.8% to EUR 242.7M (constant currency growth 11.6%). GMV grew 9.9% to EUR 268.9M (constant currency 12.7%). Gross margin was 52.3%, up 140 basis points. Adjusted EBITDA margin was 9.3%, up 200 basis points. U.S. accounted for 23.3% of total business net sales.
• Luxury NET-A-PORTER and MR PORTER: Q2 FY2026 net sales declined 1% to EUR 277.1M (constant currency growth 6%). GMV declined 1.9% to EUR 290.7M (constant currency growth 4.9%). SG&A cost ratio was 22.7%, and adjusted EBITDA margin was -0.7%.
• YOOX: Q2 FY2026 net sales declined 7.3% to EUR 125.3M (constant currency decline 4.6%). GMV declined 12.1% to EUR 125.3M (constant currency decline 9.4%). SG&A cost ratio was 26.9%, and adjusted EBITDA margin was -6%.

Guidance

• For full fiscal year 2026, expect GMV and net sales between EUR 2.5 billion to EUR 2.7 billion, and adjusted EBITDA margin of -1% to +1%.
• Mytheresa to grow high single-digit in H2 and full fiscal year. NAP and MR PORTER expected low single-digit GMV decline for FY2026. YOOX expected low teens net sales decline in H2.
• Medium-term targets: EUR 4 billion in net sales with adjusted EBITDA margin of 7% to 9%.

Risks

• Macro environment uncertainties affecting luxury market performance.
• Competition challenges, as many competitors struggle with profitable growth.
• Potential impact of department store disruptions in the U.S. on market share.
• Execution risks of the transformation plan, including challenges in fully implementing cost savings and operational changes.

Question and Answer

Q: Which regions or divisions were better than expected? And how would you contrast how Europe looks relative to the nice momentum you're seeing in Americas? Also on the 140 basis points at Mytheresa, are you expecting full price selling to continue to fuel gross margin expansion going forward there? And what should we know about the base case for the -- what's included in guidance for shipping as well? And would love your take on the main drivers of raising the low end of guidance as well. And finally, on the SG&A cost ratios, you made a lot of progress there. What's been easier versus harder in terms of lower hanging fruit versus longer term as you manage that? And how are you balancing the SG&A strategy relative to continuing to offer great customer-facing service?

A: Michael Kliger and Martin Beer discussed Europe for YOOX showing good traction (13.9% net sales growth) and Americas for Mytheresa with 22.9% net sales growth in U.S. in Q2 FY2026. Full price selling at Mytheresa is expected to continue fueling gross margin expansion. Shipping and payment cost ratios include duties, with stable trends. Main drivers of raising guidance include strong performance of Mytheresa and sequential improvements in NAP/MR PORTER. Easier parts of SG&A reduction include warehouse and customer care consolidations; harder parts include technology and longer-term changes, balanced by maintaining customer service.

Q: On the revenue side, which one beat relative to expectations? Or what should we know about how revenue trended relative to your guidance this quarter?

A: Martin Beer stated overall revenue guidance is triggered by all 3 segments. Mytheresa showed strong continuous trend with high single-digit growth, NAP/MR PORTER saw sequential improvement, and YOOX's progress aligns with expectations.

Q: With the seismic shift that you cited in the luxury sector, could you speak to how your portfolio is positioned today, maybe offensive initiatives that you've put into place to capitalize on market share globally and new customer acquisition?

A: Michael Kliger mentioned Mytheresa is well-positioned with double-digit growth in U.S., NET-A-PORTER and MR PORTER are improving with new buying volumes and marketing strategies, and LuxExperience is positioned as a digital multi-brand leader with focus on full price selling and differentiated tone of voice.

Q: For follow-up, could you elaborate on the progression of EBITDA margins into fiscal '27? Or what I wanted to know is relative to this year's flat base at the midpoint, what's the best way to model the time line for the transformation actions that you're taking across the portfolio as it relates to the bottom line?

A: Martin Beer explained sequential improvement driven by 3 segments, with each segment at different stages aligning towards medium-term targets of EUR 4 billion net sales and 7%-9% adjusted EBITDA margin, showing progress in fiscal year '27 and beyond.

Q: I guess I'd like to start near term, given the disruption at a luxury department store in the U.S. To what extent does guidance embed or do you expect some disruption as there could be some promotions coming from a competitor?

A: Michael Kliger stated focus on full price selling is key for sustainable profitability, and LuxExperience sees market share gains in U.S. regardless of department store disruptions, focusing on inspiration, service, and curation.

Q: It seems like there's been some nice progress made with some year-over-year inventory reductions. Can you speak to the overall health of the inventory and how much work is left to be done?

A: Martin Beer and Michael Kliger discussed healthy inventory levels at Mytheresa with good aging structure, NAP/MR PORTER investing in inventory to enable growth, and YOOX's inventory down, with new teams focusing on fall/winter '26 and spring/summer '27.

Q: I wanted to double-click on luxury YNAP that was strong in the quarter. I believe it was 6% growth, excluding currency, which was a bit better earlier than you expected. Can you unpack what drove the growth there in terms of new customers or the new merchandise you spoke to and then AOV versus units? And then what are you expecting for that business in the second half in terms of growth?

A: Michael Kliger explained growth driven by focus on top spenders, AOV increases (both more expensive items and more units), reduction in promotions, and expected better traction in fall/winter season with improved curation.

Q: I wanted to ask -- my follow-up would be on the operating cash flow target, 2-year time line. Martin, anything you would call out specifically there in terms of drivers that could get you there potentially earlier? And then any color on the shape of the improvement over the 2 years?

A: Martin Beer stated cash burn for FY2026 expected well below EUR 150 million, with strong operational cash flow in Q2, and expectation of cash breakeven on operating cash level in 2 years, with transformation plan fully funded and debt-free.