Luxexperience B.V. Signals Profit Turn in Earnings Call

Luxexperience B.V. ((LUXE)) has held its Q3 earnings call. Read on for the main highlights of the call.

Luxexperience B.V. used its latest earnings call to paint a picture of a business in transition that is beginning to pay off. Management highlighted a return to profitability at group level, solid growth and margin expansion at Mytheresa, and tighter cost and cash discipline. Challenges remain in the form of deliberate top-line declines at NET‑A‑PORTER/MR PORTER and YOOX, as well as ongoing cash burn, but the tone was confident that momentum is turning in shareholders’ favor.

Group profitability improvement

The group posted an adjusted EBITDA margin of 0.9% in the third quarter of fiscal 2026, marking its second consecutive profitable quarter after a loss-making period a year ago. Management now expects full‑year adjusted EBITDA to roughly break even, versus a prior year third‑quarter margin of -3.2%, underscoring a sharp turnaround in underlying profitability.

Group GMV and net sales resilience

Despite geopolitical turmoil, gross merchandise value grew 0.3% at constant currency in the third quarter and group net sales were flat year over year on the same basis. Reported net sales fell 5.2%, but management stressed that this decline was almost entirely driven by currency movements rather than underlying demand.

Mytheresa: strong top-line growth

Mytheresa remained the growth engine, with third‑quarter net sales up 9.9% at constant currency to €256.0 million and up 12.0% over the first nine months. The U.S. was a standout, with net sales rising 33.8% at constant currency and now contributing 25.8% of Mytheresa’s total sales.

Mytheresa: margin and profitability expansion

Profitability at Mytheresa improved significantly, with gross margin expanding 240 basis points to 47.1% in the third quarter. Adjusted EBITDA margin rose 160 basis points to 5.5%, driving a 50% year‑on‑year increase in adjusted EBITDA to €14.1 million and a 56.6% gain to €44.5 million over the first nine months.

Mytheresa: customer metrics and spending power

The platform continued to deepen relationships with high‑value shoppers as its top customer base grew 18.6% year over year while average spending among these buyers was broadly stable. Average order value over the last 12 months climbed 12.5% to a record €847 in the third quarter, highlighting the brand’s strength in attracting affluent clients.

NET‑A‑PORTER / MR PORTER: quality over volume

At NET‑A‑PORTER and MR PORTER, management leaned into a “quality over volume” strategy that involved pulling back promotions, resulting in a 5.1% net‑sales decline at constant currency in the third quarter. However, that discipline lifted gross margin by 700 basis points to 48.5%, pushed average order value to €865 and brought adjusted EBITDA margin close to breakeven at -0.5%.

NET‑A‑PORTER / MR PORTER: customer engagement gains

Customer satisfaction indicators improved sharply, with Net Promoter Score rising to 68.1% in the third quarter from 62.3% in the first quarter and up 890 basis points year on year. Europe excluding the U.K. was particularly resilient, delivering 4.3% sales growth and suggesting that the brand’s repositioning is resonating with core markets.

YOOX: transformation and margin recovery

YOOX continued its turnaround, reporting a 620 basis‑point increase in gross profit margin to 37.5% in the third quarter as it refined its assortment and operations. Selling, general and administrative expenses were cut by €10.3 million, or 26.4%, year on year, lifting adjusted EBITDA margin from -17.3% to -5.5% and reducing inventory by 11%.

Group cost discipline and cash position

Across the group, SG&A fell 12% year on year in the third quarter, with the cost ratio improving to 18.3%, down 360 basis points versus the first quarter. Operating cash flow over the first nine months was -€117.9 million, comfortably better than guidance, while cash and liquid investments stood at €436.1 million and total available funds at €612.8 million, leaving the company effectively debt‑free.

Strategic execution and portfolio simplification

Management closed the sale of Outnet assets at the end of April, a move that they said will sharpen focus on the YOOX off‑price business and simplify the portfolio. The company reiterated medium‑term ambitions of reaching €4.0 billion in net sales, achieving a 7%–9% adjusted EBITDA margin and returning to annual growth of 10%–15% once the transformation is complete.

Commercial partnerships and exclusive experiences

Luxexperience highlighted a slate of high‑profile campaigns and product exclusives with brands such as Balenciaga, Gucci, Loewe and Bottega Veneta, as well as the launch of Phoebe Philo’s collection on its platforms. These were complemented by numerous physical experiences and pop‑ups for its most important clients, designed to deepen brand relationships and reinforce customer loyalty.

Technology and AI as growth levers

The group is ramping up its use of generative AI through a partnership with Google’s Vertex platform to personalize content, improve search and merchandising and streamline product copy and imagery. Management also emphasized that AI is accelerating software development for its ongoing replatforming, which they see as a key enabler of future scalability and efficiency.

Geopolitical and FX headwinds

The outbreak of conflict in the Middle East in March weighed on customer sentiment and logistics, particularly across the Arabian peninsula, causing a short‑term trading dip that began to ease in April and May. Currency movements also hurt reported performance, with the stronger euro versus the U.S. dollar contributing to a 5.2% decline in reported net sales despite stable results in constant currency.

Top-line trade-offs at NET‑A‑PORTER and YOOX

The group acknowledged that net sales at NET‑A‑PORTER and MR PORTER fell 5.1% at constant currency in the third quarter and 1.6% over nine months as it deliberately pulled promotions, accepting near‑term revenue pressure to rebuild margins. YOOX, meanwhile, saw net sales drop 7.4% in the quarter and 8.9% over nine months as it deprioritized higher cost‑to‑serve overseas markets in favor of more profitable regions.

Remaining profitability and cash-flow challenges

Despite progress, YOOX and NET‑A‑PORTER remain loss‑making with adjusted EBITDA margins of -5.5% and -0.5% respectively, underscoring the work still to be done. Operating cash flow over the first nine months remains negative and the company expects total cash outflows of €350–450 million over the transformation period, while Mytheresa faces higher shipping and payment costs in the U.S. due to tariff changes.

Cost opportunity at NET‑A‑PORTER / MR PORTER

NET‑A‑PORTER and MR PORTER carry a higher SG&A ratio of 23.4% compared with Mytheresa’s 12.2%, signaling significant potential for structural savings. Management framed this more than 1,000‑basis‑point gap as a major lever for future profitability, but one that will require continued execution on cost‑reduction initiatives.

Market expectations and near-term growth

Executives acknowledged that revenues came in slightly below market expectations and that the strategy of sacrificing promotions for better margins may unsettle some investors in the near term. However, they argued that focusing on healthier growth, improved unit economics and sustainable profitability is the best way to create long‑term shareholder value.

Forward-looking guidance and outlook

For fiscal 2026, Luxexperience expects reported GMV of around €2.6 billion and net sales of about €2.5 billion, with group adjusted EBITDA at or near break‑even and operating cash burn for the year below the first‑nine‑month level and well under its previous ceiling. Management reiterated that the transformation is fully funded, aims to reach operating‑cash break‑even in roughly two years and is targeting medium‑term net sales of €4.0 billion, a 7%–9% adjusted EBITDA margin and a return to double‑digit annual growth, with Mytheresa growing in the high single digits, NET‑A‑PORTER and MR PORTER narrowing declines and YOOX turning profitable within 12 to 15 months.

Luxexperience’s earnings call presented a company that is steadily trading short‑term revenue volatility for stronger margins, better customer quality and a healthier balance sheet. With Mytheresa as a clear outperformer, cost and cash discipline improving and a fully funded transformation ahead, investors are being asked to stay patient as the group works to bring all banners to profitability and reignite sustainable, high‑quality growth.