Fiserv earnings missed by $0.61, revenue fell short of estimates
LuxExperience BV DRC reported significantly better-than-expected earnings for the fourth quarter of fiscal year 2025, with both earnings per share (EPS) and revenue surpassing analyst forecasts. The company posted an EPS of 4.67, far exceeding the forecasted 0.04, resulting in a staggering earnings surprise of 11,575%. Revenue also came in strong at 587.8 million euros, beating the expected 340.21 million euros by 72.78%. Following the announcement, LuxExperience’s stock surged 14.2% in pre-market trading. According to InvestingPro data, the company’s market capitalization stands at $1.11 billion, with an impressive 108.42% return over the past year. InvestingPro analysis suggests the stock is currently trading near its Fair Value.
Key Takeaways
- LuxExperience’s Q4 2025 EPS and revenue significantly outperformed expectations.
- The company’s stock price jumped 14.2% in pre-market trading.
- LuxExperience maintained a strong cash position of 603.6 million euros.
- The company is undergoing significant restructuring efforts to improve efficiency.
- LuxExperience plans to return to positive cash flow in the next 2-2.5 years.
Company Performance
LuxExperience demonstrated resilience in a challenging market environment, reporting a Group Net Sales of 1.3 billion euros despite a 6.3% decline in Group GMV to 2.9 billion euros. The company’s focus on restructuring and cost reduction initiatives appears to be paying off, as it maintains a strong balance sheet with a 59% equity ratio. The luxury digital retail market is experiencing consolidation, and LuxExperience is positioning itself as a leader, particularly in Europe and the U.S., despite weaker performance in Asia.
Financial Highlights
- Revenue: 1.3 billion euros, down from the previous year
- Earnings per share: 4.67 euros, a significant increase over the forecast
- Adjusted EBITDA: 44.2 million euros, with a margin of 3.5%
- Cash position: 603.6 million euros
Earnings vs. Forecast
LuxExperience delivered a substantial earnings surprise with its EPS of 4.67 euros, compared to the forecast of 0.04 euros, marking an 11,575% beat. Revenue also exceeded expectations by 72.78%, indicating strong operational performance and effective cost management strategies.
Market Reaction
The company’s stock experienced a notable increase of 14.2% in pre-market trading, reflecting investor confidence in LuxExperience’s ability to navigate market challenges and execute its strategic initiatives. The stock’s pre-market price of 9.33 euros shows a positive trajectory, moving away from its 52-week low of 3.6 euros.
Outlook & Guidance
Looking forward, LuxExperience expects its Fiscal Year 2026 GMV to range between 2.5 and 2.9 billion euros, with an adjusted EBITDA margin guidance of -4% to +1%. The company aims for medium-term targets of 4 billion euros in revenues and an 8% EBITDA margin, with a return to 10-15% annual growth rates anticipated. InvestingPro data reveals the company maintains a gross profit margin of 46.79% and operates with moderate debt levels. Analysts have set a consensus price target implying 23% upside potential, though two analysts have recently revised their earnings expectations downward. Access the comprehensive Pro Research Report for detailed analysis of LuxExperience’s growth trajectory and financial health metrics.
Executive Commentary
CEO Michael Krieger expressed confidence in LuxExperience’s strategic direction, stating, "LuxExperience is in a remarkable position to become the one and only destination for luxury enthusiasts worldwide." CFO Martin Beer highlighted the company’s financial outlook, noting, "We expect to return to positive operating cash flow for the group in two to two and a half years."
Risks and Challenges
- Volatile consumer sentiment, particularly in Asia, could impact sales.
- Ongoing restructuring efforts may face implementation challenges.
- Macroeconomic pressures could affect luxury spending.
- Competitive pressures in the digital luxury retail market.
- Potential supply chain disruptions.
Q&A
During the earnings call, analysts focused on the impact of customs and restructuring timelines for Net-a-Porter and Off-Price segments. Discussions also highlighted opportunities arising from leadership changes in luxury brands, underscoring the company’s commitment to innovation and differentiation.
Full transcript - LuxExperience BV DRC (LUXE) Q4 2025:
Conference Operator: Greetings and welcome to the LuxExperience Fourth Quarter and Full Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today’s call is being recorded, and we have allocated one hour for prepared remarks and Q&A. It is now my pleasure to introduce your host, Martin Beer, the Chief Financial Officer of LuxExperience. Thank you, sir. Please begin.
Martin Beer, Chief Financial Officer, LuxExperience: Thank you, operator, and welcome everyone to the LuxExperience Investor Conference Call for the Fourth Quarter and Full Fiscal Year 2025. With me today is our CEO, Michael Krieger. Before we begin, we’d like to remind you that our discussions today will include forward-looking statements. Any comments we make about expectations are forward-looking statements and are subject to risks and uncertainties, including the risks and uncertainties described in our annual report. Many factors could cause actual results to differ materially. We are under no duty to update forward-looking statements. In addition, we will refer to certain financial measures not reported in accordance with IFRS on this call. You can find reconciliations of these non-IFRS financial measures in our earnings press release, which is available on our investor relations website at investors.luxexperience.com. I will now turn the call over to Michael.
Michael Krieger, Chief Executive Officer, LuxExperience: Thank you, Martin. Also, from my side, a very warm welcome to all of you, and thank you for joining our call. We will comment today on the results and performance of the Fourth Quarter and the Full Fiscal Year 2025 of LuxExperience. As you know, we successfully closed the acquisition of Jux on April 23rd. Under the new name, LuxExperience, we now operate the leading global digital multi-brand luxury group. LuxExperience operates a portfolio of some of the most distinguished store brands in digital luxury and creates communities for luxury enthusiasts worldwide with unique digital and physical experiences. Mytheresa, Net-a-Porter, and Mr Porter offer highly curated edits of the most prestigious luxury brands featuring womenswear, menswear, kidswear, fine jewelry, and watches, as well as lifestyle products. Jux and THE OUTNET are the leading destinations for multi-brand off-season online luxury shopping.
With the acquisition now complete, we will report going forward on the basis of a new segment reporting structure. The three segments are luxury Mytheresa, luxury Net-a-Porter and Mr Porter, as well as off price, which is comprised of Jux and THE OUTNET. As the transaction closed on April 23rd, the performance of the two new segments was mostly driven by the previous management. In order to provide a more comprehensive view of the underlying performance of the segments, we will comment for all businesses on the full 12-month period ending June 30th, 2025, even though our financial reporting for the LuxExperience Group reflects the contribution from the acquired businesses only for the period between closing and fiscal year end.
Let me start by commenting on the overall progress of establishing a new operating model for the now formed LuxExperience Group, which is built on strong store brand differentiation while enabling significant cost efficiencies in the joint infrastructure for the luxury businesses and the separated infrastructure for the off-price businesses. We managed to have a very fast start and have already made significant changes to the YNAP structure, processes, and infrastructure since the completion of the acquisition in April. We have initiated cost reduction actions across all operation functions. This relates to changes at the global warehouse footprint and fulfillment models, the customer service provider landscape, and a global renegotiation of carrier contracts, all yielding significant savings going forward for the group.
The technology migration for luxury, as well as the simplification of a separate off-price tech stack, has also started, and we have fully validated our expectations for the time and effort needed that we had before the acquisition. We have also already enabled customer data analytics across the group by creating a joint data analytics layer on top of the different data platforms. We have come already a long way in the transformation of the group’s finance and HR functions, supporting the new operating model and driving significant G&A savings going forward. Finally, we have announced partial workforce reductions across LuxExperience that are subject to the completion of applicable information and consultation processes. All these actions aim to regain financial strength after years of decline for LuxExperience.
We are very pleased with the fast start of the transformation to leverage the scale and scope for strong growth and profitability for the whole group. Medium term, we expect therefore to reach €4 billion in net sales and an adjusted EBITDA margin of 7% to 9% for the group. LuxExperience is in a remarkable position to become the one and only destination for luxury enthusiasts worldwide. Let me now comment on the Mytheresa business, the main driver of our financial performance in fiscal year 2025. We are extremely pleased with the results of our Mytheresa business, confirming again our unique ability to deliver profitable growth despite ongoing macro headwinds. We clearly demonstrated the strengths of our business model, which focuses on wardrobe building, big spending, luxury customers.
In Q4 of fiscal year 2025, we grew our net sales by +11.5% compared to Q4 fiscal year 2024, and for the full fiscal year 2025, by +8.9% compared to full fiscal year 2024. This was an acceleration over the results of the third quarter, and we closed the year fully in line with our given guidance. In the U.S., the Mytheresa business generated a net sales growth of +6.4% in Q4 fiscal year 2025 compared to Q4 fiscal year 2024. For the full fiscal year, the U.S. accounted for 20.6% of net sales of our total business. In Europe, excluding Germany, we experienced an excellent net sales growth with +19.4% in Q4 fiscal year 2025 compared to the prior year period. This growth of Mytheresa was again driven by our resilient and loyal top customers.
The top customer base of Mytheresa grew by +3.6% in the fourth quarter compared to the prior year period. More importantly, the average spend per top customer in terms of GMV grew by +16.1% in Q4 fiscal year 2025 versus Q4 fiscal year 2024, and +15.9% for the full fiscal year 2025. As a consequence of our successful strategy at Mytheresa, our top customers accounted for 3.8% of all customers in numbers, but for 42.6% in terms of total GMV in fiscal year 2025. The average order value last 12 months for Mytheresa increased by a remarkable +10% to an outstanding €773 in Q4 fiscal year 2025, demonstrating the success of our focus on selling full-price, high-end luxury products to top customers, including our successful expansion of our fine jewelry office.
This high average order value also provides further economic leverage that we also use, for example, to invest further in our unboxing experience with added gifting for kidswear orders and branded hangers, as well as garment bags for high-value ready-to-wear items. The continued focus at Mytheresa on selling full price is also evident with the again improved gross profit margin growing by 90 basis points in Q4 fiscal year 2025. For the full fiscal year 2025, the gross profit margin grew by 130 basis points. Our excellent customer service proposition is highlighted by our internally measured net promoter score of 82.6% in Q4 fiscal year 2025, showing our consistently outstanding customer satisfaction. Our success with big spending, wardrobe building customers makes Mytheresa a highly desired partner for luxury brands.
In the fourth quarter of fiscal year 2025, we saw again many high-impact campaigns and exclusive product launches, underlying also Mytheresa’s strong relationships with luxury brands. We launched the exclusive Dolce&Gabbana Taormina capsule collection for womenswear and kidswear, only available at Mytheresa. We launched also high summer exclusive capsules with Pucci, Versace, Chloé, La DoubleJ, and Missoni for womenswear, all only available at Mytheresa. We were the exclusive pre-launch partner for the Alaïa Archetype collection, Valentino’s Été Fou capsule collection, as well as The Row Fall Winter 2025 collection for womenswear and menswear. We also launched exclusive womenswear bags and shoe styles from Bottega Veneta’s Pre-Fall 2025 collection and exclusive womenswear and menswear styles from Prada’s New Season collection.
In addition to creating desirability for our top customers with exclusive digital campaigns and product launches, we also create desirability and a sense of community for Mytheresa’s top customers through unique money-can’t-buy physical experiences. We aspire to constantly engage with our top customers across the globe to build strong, long-lasting relationships. In the fourth quarter, we hosted various top customer events, including an intimate afternoon tea with Patou at the private apartment of the Creative Director Guillaume Henry. We celebrated a de Vaux pop-up at the Mytheresa store in Munich. We invited top customers to a dinner and shopping experience with Prada at the Round Tree Hotel in Amagersfeld. Further highlights in the United States included a private behind-the-scenes viewing of the Boston Ballet’s rehearsal of Romeo and Juliet and a private tour at the Frieze Art Exhibition at Hudson Yards, hosted in collaboration with Stone Island.
In Shanghai, we created an unforgettable experience around Sarah Berki’s Debbie Runway collection together with Givenchy. In the spirit of being a community for luxury enthusiasts, we hosted a two-day Taormina experience in Sicily with Dolce&Gabbana in attendance of Alfonso Dolce. We invited guests to a dinner at the famous San Domenico Palace and a Sicilian market experience at Taormina’s Central Market. Another highlight was our two-day Rome experience with Aquazzura, including a private dinner at the Cinecittà Film Studio attended by Edgardo Osorio, founder and Creative Director of Aquazzura. We also hosted a Mediterranean escape in Ibiza with Isoni, including a boat tour and pool party. Finally, we invited clients to Naples to attend a private fashion show with Kiton and learn about the sartorial craftsmanship of the brand. In summary, we are extremely pleased with the results of the Mytheresa business.
We have demonstrated clear operational and financial leadership in an otherwise struggling sector, and we have also underlined that we have the expertise at LuxExperience to achieve profitable growth in digital luxury. Let me now comment on the luxury segment comprised of Net-a-Porter and Mr Porter. As stated in our investor presentation in May, both Net-a-Porter as well as Mr. Porter are truly iconic digital luxury brands that have distinct high-end customers, quite different from the MyTheresa customer base. Our key strategic priority will be to strengthen the unique identities of the brand and maintain the differentiation for MyTheresa. A renewed clear focus on luxury customers looking for editorial inspiration and brand discovery, as well as a focus on full-price selling, will be fundamental for the turnaround at Net-a-Porter and Mr Porter. Of course, reduced cost of operation will also be needed.
In Q4 fiscal year 2025, net sales declined by -8.9% versus Q4 fiscal year 2024 and by -10.9% for the full fiscal year 2025 compared to full fiscal year 2024 for Net-a-Porter and Mr Porter combined. The U.S. with -8% and Europe, excluding the UK and Germany with -6.5%, saw similar decreases in terms of GMV in Q4 fiscal year 2025 compared to Q4 fiscal year 2024. While the overall top line declined, the average order value last 12 months increased by +14.5% to €811 for Net-a-Porter and Mr Porter combined in Q4 fiscal year 2025. The gross profit margin remained almost stable in Q4 fiscal year 2025 for Net-a-Porter and Mr Porter combined, compared to the prior year period. Going forward, the clear strategy will be on a renewed focus on high-end, big spending customers and on full-price selling, both fully in line with our group strategy.
The immediate priority after closing the acquisition has been to appoint highly experienced and strongly driven leadership teams at Net-a-Porter and Mr Porter after years of decline. Both store brands now have outstanding dedicated leadership teams in place. This needed change was done in record speed under the leadership of Net-a-Porter’s new CEO, Heather Kaminetzky, who significantly drove MyTheresa’s U.S. growth since 2021. New Chief Buying and Merchandising Officer, Brigitte Chatron, and new Chief Brand and Customer Officer, Claudia Plant, are engineering the successful return of Net-a-Porter’s global appeal and customer passion based on editorial authority and luxury fashion discovery. No less pivotal is the return of co-founder Toby Bateman as CEO to Mr Porter.
Under his leadership, Jeremy Langmead as new Brand Director, Daniel Todd as Buying Director, and Cassandra Baxlund as new Customer Director are charting the course of Mr Porter to regain its unique leadership position as the only global menswear digital luxury destination. While we expect net sales to continue to decline in the short term for Net-a-Porter and Mr Porter, based on a lack of marketing spend in the past, as well as too little investment into the buying of attractive new merchandise, the new leadership team in place and a radical transformation program will soon bear fruit and create a much healthier and resilient business model. Lastly, let me comment on the off-price segment comprised of Jux and THE OUTNET. Both store brands have suffered the most from the lack of dedicated resources, marketing spend, as well as low investment in attractive merchandise.
Furthermore, the off-price businesses shared infrastructure and resources with the luxury businesses, which did not really fulfill the needs of a lower margin off-price business model. As stated in May, only by separating off-price from luxury and by decisively streamlining the businesses will the vicious cycle of declining revenues and decreasing investments be stopped. In Q4 fiscal year 2025, net sales declined by -17.4% for Jux and THE OUTNET combined. For the full fiscal year 2025, the decline was -13.2% compared to full fiscal year 2024. The U.S. with -21.8% and Europe, including the UK and Germany, with -15.6% saw similar negative developments in terms of GMV for Jux and THE OUTNET for Q4 fiscal year 2025 compared to Q4 fiscal year 2024. As for the other businesses, the average order value last 12 months for Jux and THE OUTNET combined increased by +17.4% to €292.
The gross profit margin decreased in Q4 by 490 basis points compared to the prior year period. This was mostly driven by the shutdown of the Jux marketplace business, as well as clearance activities during this quarter. Fully in line with our strategy, we have already taken very clear actions since the closing of the acquisition of YNAP. Separate leadership teams have been put in place and confirmed for Jux and THE OUTNET. Dedicated brand and marketing functions, separate from luxury, have been built up. Infrastructure, resources, and processes in finance, HR, operations, and most importantly, in technology are being separated from the luxury segment and streamlined to create the lean operating model required for the off-price business. Select operational administrative structures are being consolidated, and workforce reductions have been announced.
The group remains fully committed to Italy for Jux and the United Kingdom for THE OUTNET as their respective headquarters. All these measures will help us to regain growth and financial strength after years of decline for the off-price businesses. I now hand over to Martin to discuss the financial results in detail.
Martin Beer, Chief Financial Officer, LuxExperience: Thank you, Michael. As explained by Michael, we report across three segments: luxury Mytheresa, our legacy business; luxury NAP and Mr. P, which is comprised of Net-a-Porter and Mr Porter; and off-price, which consists of Jux and THE OUTNET. As the transaction closed on April 23, 2025, and our fiscal year ended June 30, our financial reporting for our LuxExperience Group reflects the contribution from the acquired businesses only for the period between closing and fiscal year end. We will refer to these as reported figures. To provide a more comprehensive view of the underlying performance of the segments and the combined business group, we will also report on certain key metrics of the new segments and the LuxExperience Group on an illustrative basis, reflecting the full last quarter and full 12-month period ending June 30, 2025.
I will now review the financial results for the fourth quarter and full fiscal year ended June 30, 2025, on a segment basis and highlight specific developments that influenced each segment’s performance. Following that, I will review the consolidated financial results for LuxExperience at group level and will then provide an outlook for fiscal year 2026 and the medium term. Unless otherwise stated, all numbers refer to euro. Let’s begin with the performance of our Mytheresa business. During the fourth quarter, covering April to June, Mytheresa’s net sales increased by +11.5% to €248.9 million. For the full fiscal year, net sales grew by 8.9% to €916.1 million, in line with our guidance. GMV grew by +11.1% in the quarter to €265.9 million and to €988.5 million in the full fiscal year, a growth of +8.2%.
Mytheresa’s gross profit margin increased by 90 basis points from 47.4% in the prior year quarter to now 48.3%, with our continued focus on full-price sales. This marks the fourth consecutive quarter of margin expansion. For the full fiscal year 2025, the gross profit margin increased by 130 basis points to 47% from 45.7% in the prior year period. I will now briefly review the cost line developments. The shipping and payment cost ratio improved by 180 basis points in the fourth quarter from 14.7% to now 12.9%. The reduction is a result of our continuous focus on improving unit economics, mostly driven by an increase in AUV and lower return rates. In the full fiscal year 2025, the shipping and payment cost ratio decreased by 110 basis points to 13.6%.
While the marketing cost ratio saw a slight increase both in the quarter and over the full fiscal year, the selling and general and administrative SG&A cost ratio decreased. In Q4 of fiscal year 2025, the SG&A cost ratio stood at 13.4% as a percentage of GMV, decreasing by 70 basis points from the prior year quarter. For the full fiscal year, the SG&A cost ratio decreased by 40 basis points to 13.6%. In Q4 of fiscal year 2025, the adjusted EBITDA margin expanded by 180 basis points from 4.7% to now 6.5%. For the full fiscal year 2025, the adjusted EBITDA margin increased by 180 basis points to 4.9%, with an adjusted EBITDA of €44.6 million, in line with our given guidance. Key drivers were our increasing gross profit margin and better unit economics through diligent cost management in all our cost lines.
To be able to continuously improve our profitability, even in challenging times for the overall industry, shows the resilience of our business model and the value of our positioning. Our inventory levels at Mytheresa stayed flat compared to the previous fiscal year end, despite double-digit top line growth. During Q4 of fiscal year 2025, Mytheresa had a positive operating cash flow of €17.6 million. For the full fiscal year, Mytheresa also had a positive operating cash flow of €3.6 million. In sum, Mytheresa outperformed its peers with double-digit top line growth and improving its profitability. In Q4 and for the full fiscal year 2025, we proved again that we are the best operator in digital luxury and are ideally positioned to fortify the leadership position of LuxExperience along its three segments. Let me now comment on the luxury Net-a-Porter and Mr Porter segment in more detail.
In the fourth quarter of fiscal year, net sales decreased by -8.9% and -10.9% LTM on an illustrative basis. As Michael outlined, this development is driven by a lack of targeted marketing and merchandise strategy and is being readjusted by the new leadership in place. This was anticipated and is reflected in our overall budget plan. The average order value on an LTM basis increased by 14.5% from €708 to €811. The adjusted gross profit margin in Q4 was mostly stable at around 51%, both in line with a strategic refocus on improving customer quality. Adjusted EBITDA profitability at Net-a-Porter and Mr Porter is below Mytheresa level at -1.1% adjusted EBITDA margin in the quarter compared to 6.5% at Mytheresa. On an LTM basis, the Net-a-Porter and Mr Adjusted EBITDA margin was at -0.7% compared to the +4.9% at Mytheresa.
As outlined in our May investor presentation, the key focus area for Net-a-Porter and Mr Porter rests in the SG&A cost ratio. In Q4, the SG&A cost ratio at Net-a-Porter and Mr Porter was at 24.6%, with now also integrating IT development costs into operating expenses instead of CapEx, the same way we have treated IT development costs at Mytheresa. In fiscal year 2024, Net-a-Porter and Mr Porter had tech people CapEx of $26 million. With closing of the acquisition, we changed towards this integration into SG&A expenses starting in this fiscal year Q4. From now on, this enables full transparency in the true SG&A cost development. The 24.6% SG&A cost ratio at Net-a-Porter and Mr Porter in the quarter compares to the 13.4% SG&A cost ratio at Mytheresa.
This is over a 1,000 basis points difference and is therefore the focus area of our transformation plan, with IT replatforming, operational efficiencies, simplifying the business model, and cutting overhead costs. Other cost lines of the Net-a-Porter and Mr Porter Q4 and LTM performance are in line with our expectations and the transformation plan. We also provided illustrative previous year numbers of Net-a-Porter and Mr Porter. Given the alignment to the group CapEx policy mentioned above and other adjustments in the setup, previous year numbers are not fully comparable to the current Q4 performance. As we provide previous year comparisons in the Mytheresa segment, we wanted to also make the financial development transparent at the other two segments.
With the new leadership team at Net-a-Porter and Mr Porter on board, we will refine and invest in our buying and marketing efforts to set Net-a-Porter and Mr Porter on a growth trajectory again while improving profitability. With the execution of our transformation plan, we expect the Net-a-Porter and Mr Porter segment to achieve comparable profitability levels to the Mytheresa segment, with a targeted adjusted EBITDA margin of around 7% to 9% medium term. Let me now review the financial performance of the off-price segment. The off-price segment is set to a more comprehensive restructuring of its business model. The new leadership team has been initiating multiple changes in its operational and business setup to return to a simplified, efficient, and more quality-focused setup. In Q4, especially with the discontinuation of the unprofitable Jux marketplace model, this led to a deliberate net sales reduction of -17.4% to $159.1 million.
On an LTM basis, net sales decreased by 13.2% to $792.8 million. The AUV on an LTM basis increased by +17.4% to €292, in line with the customer quality shift. The gross profit margin was at 37.9% in the quarter and 35% in the LTM period. The SG&A cost ratio of 28.1% in Q4 mirrors the fundamental restructuring effort needed to enable the off-price segment to return to its historic profitability levels. As with the NAP Mr Porter segment, the SG&A cost ratio now includes the IT development costs into operating expenses instead of CapEx. In fiscal year 2024, off-price had tech people CapEx of €18 million. We are starting to drastically simplify the operating model and to capture efficiencies in its IT and operational setup and corporate overhead.
In this current stage, the off-price segment experienced an adjusted EBITDA margin in Q4 of -17.9% and -12.1% on an LTM basis, in line with our expectations and the long-term plan. With the execution of our defined transformation plan, we expect to return to adjusted EBITDA profitability of the off-price segment in 18 to 24 months. In Q4, the two new segments, NAP Mr Porter and off-price, had combined a negative operating and investing cash flow of -€46.6 million. For the full fiscal year 2025, those two segments had an operating and investing cash flow of -€4.6 million, driven by low inventory intake and low marketing investments. With the measures of the transformation plan coupled with investments in marketing and networking capital buildup, fiscal year 2026 will be a cash consumption year for LuxExperience.
Now that we’ve reviewed the performance of our individual segments, let’s take a look at how these results translate into our group-level financials for LuxExperience. When we refer to reported numbers, it is our financial reporting reflecting the true contribution from the acquired businesses between closing and fiscal year end. When we refer to illustrative numbers, it is reflecting the contribution of the acquired businesses as if they were part of the group for the full periods presented, but excluding acquisition accounting and OFS and Fang Mao businesses that are being wound down. For the full fiscal year 2025 and the June 30, reported group GMV amounted to €1.3 billion. On an illustrative basis, group GMV in the full fiscal year 2025 was €2.9 billion, decreasing from €3.1 billion in the previous 12-month period, representing an overall decrease of -6.3%.
Reported group net sales amounted to €1.3 billion for the full fiscal year 2025. On an illustrative basis, net sales were $2.8 billion compared to $2.9 billion in the comparable period, resulting in a decrease of -5.9%. Reported group adjusted EBITDA for the full fiscal year 2025 amounted to $44.2 million at an adjusted EBITDA margin of 3.5%. This higher reported group adjusted EBITDA in comparison to illustrative numbers is mostly driven by effects from acquisition accounting. On an illustrative basis, group adjusted EBITDA was -$15.3 million in Q4 of fiscal year 2025 and -$58.7 million for the full fiscal year 2025. The adjusted EBITDA margin was -2.3% in Q4 and -2.1% for the full fiscal year. At the end of the full fiscal year 2025, reported group inventory stood at $1.2 billion and $20 million, with net working capital at $814.4 million.
Reported group operating cash flow for the fiscal year was -$30.6 million. On an illustrative basis, including all three segments, operating and investing cash flow for the last 12 months was -$2.3 million, driven by a significantly reduced inventory intake at Net-a-Porter, Mr Porter, and off-price. The group ended the fiscal year with a cash position of $603.6 million and additional access to an undrawn revolving credit facility of $179.8 million. LuxExperience has a strong balance sheet with $1.8 billion of current assets, mostly inventories and cash, almost no bank debt, and an equity ratio of 59%. Let me now talk to the financial outlook of LuxExperience based on the most recent near-term and medium-term expectations. With the implementation of our transformation plan, fiscal year 2026 will be a transition year. In addition, given the persistent uncertainties on the direct and indirect U.S.
customs effects on worldwide customer sentiment, we look at the next 12 months with prudent conservatism. We expect Mytheresa to continue growing its GMV top line. Net-a-Porter and Mr Porter will still need fiscal year 2026 to readjust their buying and marketing strategy and will therefore still slightly decline in GMV. Off-price in fiscal year 2026 will continue the restructuring of its operating and business model. We therefore expect GMV at off-price to continue to decrease considerably. In sum, in fiscal year 2026, LuxExperience at group level is expected to have a GMV at around $2.5 to $2.9 billion. Medium term, we expect LuxExperience to return to 10% to 15% annual growth rates. Given the uncertainties in the market mentioned earlier and fiscal year 2026 being a transition year, we expect in fiscal year 2026 comparable profitability levels to fiscal year 2025.
In sum, LuxExperience at group level is expected to report an adjusted EBITDA margin between -4% and +1%. We are in an ideal position to execute our transformation plan. With our continued success at Mytheresa, we have proven that we are the best execution team in global digital luxury. The new leadership teams at NET-A-PORTER, MR PORTER, and off-price have begun their work, and at group level, we are in the midst of implementing the measures of our transformation plan. The integration of the YNAP finance teams and formation of all LuxExperience group structures have started early, and we are well on the way.
Key activities included a new group-wide organization and governance setup, an integrated finance consolidation and IFRS 16 tool, new segment reporting, unified accounting and reporting policies with transparent cost center structures to enable accountability and cost savings, and a highly efficient and effective finance group team setup. The statutory and group audits for fiscal year 2025 under strict PCAOB guidelines are progressing well, and we expect to file our 20-F as planned end of October. The full execution of the transformation plan, which includes operational adjustments, technology platform integration, and organizational alignment, is already fully funded and with additional leeway for the €555 million cash injection of Bridgemore at closing. At the end of June 2025, LuxExperience had a total available liquidity of €784 million, including cash at hand of €604 million and no bank debt, just a small utilization of our revolver of €20.2 million.
We expect the turnaround to require funds in total of no more than €350 million to €450 million, and we expect to report positive operating cash flow for the group in two to two and a half years. The setup of LuxExperience with its three operating segments is designed to preserve the strength of each segment while unlocking meaningful long-term value. While we are already seeing initial positive momentum, we will continue to carefully manage the business to drive operational improvements and strategic growth. We are fully committed on executing our transformation plan and creating significant value for our shareholders and stakeholders. Medium term, we expect to grow LuxExperience to $4 billion revenues with adjusted EBITDA of around $320 million at an adjusted EBITDA margin of around 8% at the levels we have proven to achieve in the past.
As the clear leader in global digital luxury, we have the track record of multi-year growth at CAGR’s well above 12%. With this, I hand over to Michael for his concluding remarks.
Michael Krieger, Chief Executive Officer, LuxExperience: LuxExperience is in a remarkable position to become the one and only destination for luxury enthusiasts worldwide, bringing together some of the most iconic brands in digital luxury retail. The outstanding performance of Mytheresa shows our unique ability to deliver continued success in digital luxury. We will bring these capabilities and our successful approach to the new store brand. We managed to have a very fast start and have already made significant changes to the YNAP structure, processes, and infrastructure since the completion of the acquisition in April. We will leverage the scale and scope of the newly formed group for efficiencies and value creation across the business segments. By building a community for luxury enthusiasts worldwide and creating desirability through digital and physical experiences, we will continue to generate enormous value for our customers, brand partners, and shareholders. I ask the operator to open the line for your questions.
Conference Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now. If you have dialed into today’s call, please press star nine to raise your hand and star six to unmute. Please stand by briefly while we compile the Q&A roster. Your first question comes from the line of Oliver Chen with TD Cowen. Your line is open. Please go ahead.
Hi, Michael. Martin, thank you. On the Mytheresa business, the AOV was impressive as well as the margins. What parts of the Mytheresa business experienced upside relative to your expectations? What should we expect in terms of the margin profile going forward? You had a nice benefit with the unit economics. Also, you called out that SG&A, a big opportunity on the SG&A side on the Net-a-Porter division. What’s the roadmap for timing of what we should expect there, given it’s a nice opportunity and some of it’s within your control? On the customs effect, that would be helpful for us to understand what we should be thinking about with the risk associated with the sentiment that you articulated relative to customs.
Finally, as you articulated the guidance on the $2.5 to $2.9 billion, it’d be helpful for us to understand what you’re seeing regionally and what you’re assuming geographically in terms of achieving that guidance level at the top line. Thank you.
Michael Krieger, Chief Executive Officer, LuxExperience: Thank you, Oliver, for this one question. Let me start with your first question. I think clearly the group guidance expects that we will continue to improve the profitability in the Mytheresa business, continually improving full price and thus have a further increase in gross margin. Upsides, I mean, we reported a very strong European business in this quarter, which is great. This is an important or the largest part of the Mytheresa trading. We do expect continued strong growth in the U.S. We’re all aware that things are quite fickle nowadays, so this is all based on what we know today. There is continued growth and continued margin improvement for Mytheresa definitely possible. On the SG&A roadmap, I think also based on the May presentation, the elements are clear. It’s in the operations, it’s in the corporate functions, it’s in the technology, it’s in the data leverage.
A lot of it is under our control, as you rightly put, Oliver. We are moving very fast on operation, and this will definitely show the fastest and first results. Corporate also, we are going with a fine comb to all SG&A cost. Technology, this is the biggest part of savings, but this is the one that definitely takes two to two and a half years. Maybe for the two last questions, I hand over to Martin on customs and guidance.
Martin Beer, Chief Financial Officer, LuxExperience: Yeah. Happy. Hi. Hi, Oliver. Happy to answer on the customs side. What we currently see is that the indirect customs effect on the customer sentiment is containable. We see a continued strong growth of Mytheresa and all other businesses. The overall effect of U.S. customs in the industry is still there, but we see green shoots. We see positive developments and also for us, not a barrier to continue our strong growth worldwide. Sorry, what was the second question?
Regionally, as you think about the growth rates and how are you thinking about the US relative to Europe, and any comments or thoughts on what you’re seeing in Asia in terms of the model going forward, geographic dynamics?
Thank you. Yeah, I mean, maybe if we start with the last aspect, in our guidance growth, there’s nothing like unexpected, you know, super growth in Asia modeled in or built in. We continue to see what everybody sees that, you know, Asia, especially China, is still weak. As you know, our base is very small, so we don’t, so China is for us rather an option for further growth once the situation improves. In the guidance, nothing is built in there. As Michael called out, the regional growth avenues are quite vast for us. We continue and expect to continue to grow worldwide with strong growth in Europe, continued also strong growth in the U.S. This is also clearly visible for us. We are able to grow in all regions, no matter what the situation is there.
On the regional side, especially looking at the guidance, no unexpected or change in what we have seen so far. A continuous strong development of LuxExperience in all regions.
Michael Krieger, Chief Executive Officer, LuxExperience: Thank you. Best regards.
Conference Operator: As a reminder, if you’d like to ask a question, please raise your hand. If you’ve dialed into today’s call, please press star nine to raise your hand and star six to unmute your line. We have a follow-up question from the line of Oliver Chen. Please go ahead. Hi, Oliver. Can’t hear you currently, so we’re going to move on to the next question. Next question comes from the line of Blake Anderson with Jefferies. Your line is open. Please go ahead.
Hi, guys. Congrats on all the deal progress so far, and I appreciate you taking the question. I wanted to just ask on guidance. Could you give any more color on the key factors that would lead you to hitting the lower end of your EBITDA margin guidance versus the higher end? I’m wondering, on quarterly cadence, can you provide maybe any quarter-to-date trends you’ve seen in any shaping of the year? Thanks so much.
Michael Krieger, Chief Executive Officer, LuxExperience: Yeah, I mean, if you look at the quarterly guidance, as you know, the quarters are mostly driven by the seasonality of the business, with Q2 and Q4 being stronger quarters and Q1 and fiscal Q3 being weaker quarters. This seasonal cadence will continue. On the overall guidance, obviously, given that we’re in the midst of the restructuring of two segments and seeing the overall situation in the market, also with other brands, we want to be conservatively prudent. Therefore, we have guided for a large spread of the adjusted EBITDA margin. The lower end is then driven by a more conservative approach of looking at the overall market development that obviously stays still a bit uncertain on multiple fronts. Yeah.
Conference Operator: Thank you. As a reminder, if you’d like to ask a question, please raise your hand. We have a follow-up question from Oliver Chen. Oliver, please ensure your line is unmuted.
Hi, thanks a lot. Appreciate that. On the details on Net-a-Porter, you mentioned a couple of issues regarding inventory as well as demand creation on the marketing side. What’s the timing and roadmap on both of those opportunities? It looks like they’re definitely impacting the margin. Thanks.
Michael Krieger, Chief Executive Officer, LuxExperience: As you know, there is a significant lead time in terms of changing assortment, moving the buy. We have a strong new Buying Director in place. He’s in the market. The fall/winter 2026 is the assortment that is now being bought, and this kicks in with early deliveries in May of next year. The performance of the coming fiscal year is still very much influenced by spring/summer 2026 that, outside of the main selections, has already been bought. There are many other opportunities on the marketing side in terms of customer acquisition and customer targeting.
We are changing the approach to performance marketing based on the experience and also models that we have built at Mytheresa over the years. Merchandise has the longest lead time on marketing and customers, but customer tactics, top customer engagement, all of these levers that have been neglected or, in our view, not executed correctly, will kick in and you will already see impact in those aspects in the first half of the next calendar year.
Okay, Michael. Also, there’s been a lot happening in the backdrop with different closures and distress as well. What are your thoughts on the current state of the promotional environment that you’re seeing and opportunities amidst the closures? As we look at the designer landscape, you have a lot of really strong relationships and there’s a ton of newness on the creative side. What are your latest thinkings on the changes creatively and quiet relative to louder luxury?
Yeah, on your first part, I think, yes, we have seen further steps in the consolidation of the sector. I still refer to it as a sort of perfect example of an industry curve that after boom and some weaker demand seasons, there is consolidation. I continue to believe, and I think this also drives some of our numbers, this consolidation helps to get to a healthier industry, to a reduction in promotional activities of different players. It’s for sure that we have a much more balanced inventory-to-demand equation at the moment in place. As long as demand continues to develop as it has over the last couple of months, we should be very fine. Of course, these things are fickle. To your second part, you’re absolutely right. I mean, we are really at the pivotal moment at many houses, new designers.
We’ve seen some first debuts, to name Thelma Gazzali as the new Creative Director at Gucci, which brought a lot of new attention to the brand. We will have further new designers at Bottega Veneta on Saturday with Louise Trotter. We will have a new designer at Versace presenting on Friday. We believe there’s a huge level of opportunity in there. There will be a lot of attention garnered by press, by influencers, by ambassadors. We believe that not everything will work, but there’s a significant amount of creativity coming into this market, and that’s what it needs. We are really looking forward to it, and our buyers are ready to jump in when they see opportunities, when they see attractive merchandise. As outlined by Martin, we are in a position to put dollars behind it if we believe there is a strong talent in the market.
Okay, and on the consumer sentiment piece, as you know, it’s been somewhat volatile. What are you seeing with consumer sentiment and the feel-good factor in relation to your business? Dimna’s been exciting at Gucci as well. It’s a rebirth or a transformation with what’s happening at that brand. Would love any thoughts on that opportunity as well.
I think I have, whatever I say, I have to really build on your remarks. We are in a very volatile environment, so everything we see is only as valid as far as we can sort of predict the future. Sentiment has been improving. I refer back to the strong results in the last quarter in Europe for Mytheresa. We continue to see good growth and acceleration in the demand in the U.S. In Asia, from a very low level, there are improvements visible. Current trends are positive at different sort of levels of strength. We are in a volatile environment and we have seen a lot of macro shocks that change that quite quickly. Gucci is one of the biggest luxury brands in the industry. Even with the negative trend of recent years, it’s still a top five luxury brand.
A new designer bringing in a lot of creativity and creating quite a lot of buzz in the last two days is very positive. This is never a one-season game. This is establishing new codes, building on the existing codes of the brand. Great start. Without a great start, you can’t have a continuation. A great start alone is, of course, also not enough.
Thank you. Finally, on the off-price division, you’ve been consistent with the need to take out costs there and rebase it to what’s appropriate for the margin profile of that division. What are the harder parts of that business? It’s pretty different in terms of the buying techniques as well as the customer. What do you see happening in terms of your core competencies relative to that division? How quickly can you get the margin structure in a place that you’re happy with?
It is a different business. I mean, we have shared the small overlap between the two luxury segments and that segment. Still, it is retail and we firmly believe that the strict application of the principles of focusing on the customer, understanding what he or she really desires, servicing them well, and of course, being frugal. It’s not so much that these two businesses spend without any understanding of their cost structure. They were fitting on a cost structure that was not engineered for off-price. It’s really what we stressed often, the separation of the infrastructure from the luxury. To provide them an infrastructure that fits their gross profit margin in off-price and off-season is lower by definition of that business model.
I think there are different challenges, but the opportunities are as big and the time horizon is as fast as we see with the Net-a-Porter, Net-a-Porter, Mr Porter luxury segment.
Conference Operator: Thank you. There are no further questions pending at this time. This concludes today’s call. Thank you for attending. You may now disconnect.
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