Myt Netherlands Adr ((LUXE)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Myt Netherlands Adr painted a mixed picture of the company’s current standing and future prospects. While the successful acquisition and integration of YNAP into the LuxExperience Group was a highlight, challenges persist in other segments such as NET-A-PORTER, MR PORTER, and Off-Price, which are currently undergoing restructuring due to declining net sales. The sentiment expressed during the call was cautiously optimistic, with a focus on leveraging successful segments to counterbalance the underperforming ones.
Successful Acquisition and Integration
LuxExperience has successfully completed the acquisition of YOOX NET-A-PORTER, marking a significant milestone in its strategy to become a leading global digital multi-brand luxury group. The acquisition, finalized on April 23, has already led to substantial changes in YNAP’s structure, processes, and infrastructure, setting the stage for future growth and integration benefits.
Mytheresa Business Performance
The Mytheresa segment stood out with impressive net sales growth of 11.5% in Q4 of fiscal year ’25 compared to the previous year, and an 8.9% increase for the full fiscal year. The average order value also rose by 10% to EUR 773, accompanied by a gross profit margin increase of 90 basis points in Q4, highlighting the segment’s robust performance.
Positive Financial Metrics
Mytheresa’s financial health was further underscored by a 130 basis point increase in gross profit margin for the full fiscal year ’25. Additionally, the adjusted EBITDA margin expanded by 180 basis points to 4.9%, reflecting efficient cost management and strong revenue growth.
Strong Customer Engagement
Customer satisfaction remains a key strength for Mytheresa, as evidenced by a Net Promoter Score of 82.6% in Q4 fiscal year ’25. The company has successfully engaged its top customers through exclusive product launches and unique customer events, fostering loyalty and repeat business.
Decline in NET-A-PORTER and MR PORTER Segments
Despite Mytheresa’s success, the NET-A-PORTER and MR PORTER segments faced challenges, with net sales declining by 8.9% in Q4 fiscal year ’25 and 10.9% for the full fiscal year. These segments are currently undergoing a turnaround under new leadership, aiming to reverse the downward trend.
Off-Price Segment Challenges
The Off-Price segment, including YOOX and THE OUTNET, also struggled with a net sales decline of 17.4% in Q4 and 13.2% for the full fiscal year. The gross profit margin decreased by 490 basis points in Q4, indicating significant challenges in this segment.
Overall Group Financial Performance
The group’s overall financial performance reflected the mixed results, with an illustrative adjusted EBITDA of minus EUR 58.7 million for the full fiscal year ’25 and a negative adjusted EBITDA margin of -2.1%. This underscores the need for strategic restructuring and focus on profitable segments.
Market and Economic Challenges
The luxury market is currently facing uncertainties, including indirect U.S. customs effects, which are impacting consumer sentiment and demand. These challenges add to the complexity of navigating the current economic landscape.
Forward-Looking Guidance
Looking ahead, LuxExperience has set ambitious goals, projecting medium-term net sales of EUR 4 billion and an adjusted EBITDA margin of 7% to 9%. For fiscal year 2026, the company anticipates GMV of EUR 2.5 billion to EUR 2.9 billion and an adjusted EBITDA margin range of minus 4% to plus 1%. The long-term objective is to achieve EUR 4 billion in revenue with an adjusted EBITDA of around EUR 320 million, leveraging its robust balance sheet and strategic restructuring.
In conclusion, the earnings call for Myt Netherlands Adr highlighted a company in transition, with strong performances in certain segments offset by challenges in others. The overall sentiment was one of cautious optimism, with a clear focus on strategic growth and restructuring to achieve long-term financial goals.