Myt Netherlands Adr Earnings Call Shows Turnaround Momentum

Myt Netherlands Adr ((LUXE)) has held its Q2 earnings call. Read on for the main highlights of the call.

Myt Netherlands Adr’s latest earnings call struck a cautiously optimistic tone as management pointed to tangible progress across its multi‑brand platform. Mytheresa’s outperformance, a return to positive adjusted EBITDA at group level and stronger cash generation signaled momentum, even as executives acknowledged that YOOX and the wider luxury segment still face profitability and cash‑flow challenges.

Mytheresa: Growth, Higher Margins and Stronger Customers

Mytheresa delivered standout Q2 results, with net sales up 8.8% year on year and U.S. revenue jumping 22.9%, now over 23% of the mix. Gross margin expanded to 52.3% while adjusted EBITDA margin climbed to 9.3%, supported by a 12% rise in average order value, a larger top‑customer base and lower inventory.

Group Revenue Expansion and Return to Profitability

At group level, net sales grew 1.1% on a reported basis and 5.7% in constant currency, with GMV also improving. For the first time since the acquisition, the group posted a positive adjusted EBITDA margin of 2%, helped by a 270‑basis‑point reduction in SG&A costs and a strong Q2 operating cash inflow that left liquidity comfortably funded.

NET‑A‑PORTER and MR PORTER: Sequential Recovery Takes Hold

NET‑A‑PORTER and MR PORTER showed clear signs of recovery as net sales slipped only 1% in Q2, a sharp improvement from the prior quarter, and rose in constant currency. Customer quality and engagement improved with higher average order values, rising EIP spending, a double‑digit NPS increase and an adjusted EBITDA loss close to breakeven.

YOOX: Early Turnaround but Still in the Red

YOOX’s trends improved sequentially, with net sales and GMV declines narrowing and Europe posting double‑digit growth. Higher average order values, better NPS, lower SG&A ratios and reduced inventory point to operational progress, yet adjusted EBITDA remained negative, underscoring that the off‑price segment still needs substantial work.

Brand Exclusives and Experiential Luxury Drive Engagement

Management highlighted exclusive capsules and curated experiences across Mytheresa, NET‑A‑PORTER and MR PORTER as key levers to support premium pricing. Collaborations with top luxury names and “money‑can’t‑buy” events are designed to reinforce brand desirability, sustain full‑price selling and deepen relationships with the highest‑value customers.

Operational Restructuring and Medium‑Term Ambitions

The transformation program is advancing through warehouse closures, consolidation of studios and customer care, and ongoing IT replatforming, alongside workforce reductions. Despite near‑term disruption and costs, management reaffirmed its medium‑term ambition of €4 billion in net sales and a 7%–9% adjusted EBITDA margin by FY29/30, signaling confidence in the revamped operating model.

YOOX and Luxury Profitability Remain Fragile

The company stressed that YOOX, while improving, continues to post double‑digit GMV declines and a negative EBITDA margin, highlighting the drag from off‑price operations. NET‑A‑PORTER and MR PORTER are also not fully restored, with slightly negative EBITDA and a lower reported gross margin, even though underlying recovery trends are encouraging.

Modest Group Profitability and Near‑Breakeven Outlook

Although Q2 adjusted EBITDA turned positive, management framed current profitability as modest and still vulnerable to execution risk. The full‑year FY26 guidance for adjusted EBITDA remains essentially at breakeven, indicating that investors should expect only limited near‑term earnings while the transformation is completed.

Transformation Cash Needs and Near‑Term Cash Headwinds

The turnaround is cash‑intensive, with management expecting negative operating cash flow in Q3 and a full‑year burn below €150 million in FY26. Over the life of the plan, transformation cash outflows are estimated at €350–€450 million, though the group emphasized it is fully funded and aims to reach operating cash breakeven in about two years.

Shipping Costs, Duties and Margin Pressures

Mytheresa’s shipping and payment cost ratio rose due to higher U.S. duties absorbed by the company, creating a concrete headwind to margins. While underlying logistics efficiency improved, management acknowledged that if duty trends persist, they could limit further margin expansion and require ongoing cost discipline elsewhere.

Seasonality and External Market Disruptions

Executives reminded investors that the business is seasonal, with Q1 and Q3 structurally softer, and flagged that Q3 should be weaker than Q4. They also warned that potential stress in the U.S. department store channel may trigger aggressive discounting, which could cause short‑term volatility and pricing pressure in parts of the luxury market.

Working Capital and Inventory Rebalancing

NET‑A‑PORTER and MR PORTER are now rebuilding inventory after previously buying too cautiously, which temporarily consumes cash. Management argued that this working‑capital investment is critical to support sales growth and capitalize on improving customer demand as the luxury platforms recover.

Guidance and Outlook: Gradual Improvement, Not a Quick Fix

The company narrowed FY26 guidance to GMV and net sales of €2.5–€2.7 billion and an adjusted EBITDA margin between -1% and +1%, with Q3 softer than Q4. Mytheresa is expected to grow at a high single‑digit rate with stable margins, NET‑A‑PORTER and MR PORTER should return to growth late in the year, and YOOX is guided to a low‑teens sales decline but a return to EBITDA profitability within 12–15 months.

Myt Netherlands Adr’s earnings call painted the picture of a complex but increasingly controlled transformation, with Mytheresa’s strength offsetting lingering weaknesses at YOOX and in parts of the luxury portfolio. For investors, the key takeaway is that profitability and cash generation are moving in the right direction, yet the story remains one of steady execution rather than a rapid turnaround.