Myt Netherlands Adr ((LUXE)) has held its Q1 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, Myt Netherlands Adr demonstrated a mixed sentiment, with strong performance in Mytheresa’s net sales growth and profit margins, but faced challenges due to declining sales at NET-A-PORTER, MR PORTER, and YOOX. Despite these hurdles, the company is making positive strides in its transformation and growth initiatives.
Mytheresa Net Sales Growth
Mytheresa reported a robust 12.2% increase in net sales for Q1 of fiscal year 2026 compared to the same period in 2025, with the United States market showing a remarkable 21.9% growth. This significant uptick underscores Mytheresa’s strong market position and effective strategies in expanding its customer base and sales.
Improved Gross Profit Margins
The company achieved an increase in gross profit margins, with Mytheresa improving by 70 basis points and NET-A-PORTER and MR PORTER by 130 basis points in Q1 fiscal year 2026. This improvement reflects the company’s successful efforts in cost management and operational efficiency.
Successful Off-Price Segment Transformation
LuxExperience made strategic advancements in simplifying its Off-Price segment by reaching an agreement to sell THE OUTNET assets. This move allows the company to focus on YOOX, thereby reducing operational complexity and enhancing efficiency.
Strong Customer Engagement and Campaigns
Both Mytheresa and NET-A-PORTER launched high-impact campaigns and exclusive products, which have significantly enhanced brand partnerships and customer engagement. These initiatives are pivotal in maintaining and expanding their customer base.
Positive EBITDA Margin at Mytheresa
Mytheresa’s adjusted EBITDA margin expanded by 210 basis points to 3.5% in Q1 fiscal year 2026, highlighting the company’s ability to improve profitability through strategic initiatives and operational improvements.
NET-A-PORTER and MR PORTER Sales Decline
Despite improvements in profit margins, NET-A-PORTER and MR PORTER experienced a 10.8% decline in net sales in Q1 fiscal year 2026. This decline is attributed to low merchandise orders from the previous year, indicating challenges in inventory management and demand forecasting.
YOOX Sales Decline
YOOX faced a net sales decline of 16.5% in Q1 fiscal year 2026, driven by a strategic focus on profitable customer cohorts and market adjustments. Despite the sales drop, the focus on profitability is a strategic move to ensure long-term sustainability.
Group Operating Cash Flow
LuxExperience reported a negative operating cash flow of EUR 146.4 million in Q1 fiscal year 2026, primarily due to seasonal and one-time effects. This highlights the need for improved cash flow management amidst ongoing macroeconomic challenges.
Forward-Looking Guidance
Looking ahead, LuxExperience remains optimistic, forecasting a GMV between EUR 2.4 billion and EUR 2.7 billion for fiscal year 2026, with an adjusted EBITDA margin ranging from minus 2% to plus 1%. This guidance reflects the exclusion of THE OUTNET and a firm commitment to the company’s transformation plan, despite the challenging economic environment.
In summary, the earnings call for Myt Netherlands Adr presented a mixed sentiment with notable achievements in Mytheresa’s growth and profitability, contrasted by challenges in other segments. The company’s forward-looking guidance indicates a cautious optimism, with strategic initiatives aimed at overcoming current hurdles and achieving long-term growth.