LuxExperience Q2 FY2026 Earnings Call - Turnaround gains traction, group adjusted EBITDA positive at 2%

Operator: Greetings, and welcome to the LuxExperience second quarter of fiscal year 2026 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 second quarter of fiscal year 2026. With me today is our CEO, Michael Krieger. Before we begin, I would 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.

Operator: 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 second quarter of fiscal year 2026 of LuxExperience. We are extremely pleased with the results of the second quarter. The initiated turnaround of YNAP already shows good results with strong improvements across all three business segments. Growth and profitability at group level in the second quarter of this fiscal year confirm that we are fully on track with our transformation plan targeting medium-term group net sales of EUR 4 billion with an adjusted EBITDA margin of 7%-9%. The Mytheresa business continues to outpace the industry, delivering double-digit growth and high profitability. NET-A-PORTER and MR

NET-A-PORTER already show sequential improvements as a direct result of the execution of the new strategic focus on customer full-price selling and cost discipline. At YOOX, our strategy of focusing on the healthy core of the business by the new management is also generating clear improvements in the results. We continue to see seismic shifts in our sector as more and more of our competitors are not able to deliver profitable growth. LuxExperience is now the clear digital multi-brand leader for luxury enthusiasts on a global level. Over the past decade, Mytheresa has consistently built and grown trusted relationships with its brand partners and customers. These relationships are the foundation of our success. Sustainable and profitable growth in luxury comes from providing brands and customers with the very best in-service and experience. As a group, we know how to engage with true luxury customers through desirability, emotion, and community.

These principles remain at the core of everything we do. Together with NET-A-PORTER, MR PORTER, and YOOX, we will seize the tremendous opportunities that present to us going forward. As LuxExperience, we possess the secret sauce in digital luxury. Let me now start by commenting on the Mytheresa business. We are again extremely pleased with the outstanding results in the second quarter of fiscal year 2026. Mytheresa’s clear focus on wardrobe-building, big-spending luxury customers, and their needs through inspiration by curation, highest-quality service, and community-building with physical events has again strongly paid off. In Q2 of fiscal year 2026, we grew our net sales by +8.8% compared to Q2 of fiscal year 2025. In the United States, which is a key market for growth, net sales reached +22.9% in Q2 fiscal year 2026 compared to Q2 fiscal year 2025.

In the second quarter, the U.S. accounted for 23.3% of net sales of our total business. In Europe, excluding Germany and the U.K., we saw a net sales growth of +7.3% in Q2 fiscal year 2026. Mytheresa’s financial strengths and exceptional growth are fundamentally driven by its outstanding customer base. In the second quarter of fiscal year 2026, the top customer base of Mytheresa grew by +13.5% compared to the prior year period. Furthermore, the average spend per top customer in terms of GMV grew by a very strong +12.5% in Q2 fiscal year 2026 versus Q2 fiscal year 2025. The average order value last 12 months for Mytheresa increased by a remarkable +12% to an outstanding €824 in Q2 fiscal year 2026, demonstrating the success of our focus on selling full-price, high-end luxury products to top customers.

The continued full-price focus at Mytheresa is also evident with the again improved gross profit margin growing by 140 basis points in Q2 fiscal year 2026. Lastly, Mytheresa’s customer satisfaction, which we measure by our internal net promoter score NPS, hit a high note, reaching 83.7% in Q2 fiscal year 2026, up from 78.3% in Q1 fiscal year 2026, showcasing the continued excellence in customer service despite high volumes during the holiday period. Our success with big-spending wardrobe-building customers makes Mytheresa a highly desired partner for luxury brands. In the second quarter of fiscal year 2026, we saw again many high-impact campaigns and exclusive product launches underlining Mytheresa’s strong relationships with luxury brands.

We launched exclusive collections like the Dolce & Gabbana holiday collection for womenswear and kids’ wear, only available at Mytheresa, as well as exclusive holiday capsule collections for womenswear from Christian Louboutin, Roger Vivier, and Etro, only available at Mytheresa. We were the exclusive pre-launch partner for the Studio Nicholson and Aaron Levine’s collection for menswear. We also launched exclusive styles from Loewe’s and Bottega Veneta’s pre-spring 2026 collections and exclusive runway looks from Moncler Grenoble’s Fall/Winter 2025 collections for womenswear and menswear. Please see our investor presentation for more details on these capsules and exclusives. 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-buy physical experiences.

In the second quarter, we invited top customers to a special curated experience with Bottega Veneta at Teatro La Fenice in Venice that included the reopening of the historic theater enjoying Mozart’s La Clemenza di Tito, as well as an intimate gala dinner within the theater itself. We hosted an exclusive private gathering in Riyadh, unveiling Mytheresa’s latest curated luxury collections, including exclusive skiwear styles. We also hosted style suites in Warsaw, Frankfurt, Zurich, Hong Kong, New York, and Los Angeles, presenting new collections in immersive curated environments. A highlight in the United States was a style suite in partnership with Schiaparelli for two days in Miami to present the Drop 2 collection. Together with Roger Vivier, we welcomed our guests in the newly opened Maison Vivier in Paris, offering a special guided archive tour followed by an intimate dinner hosted by creative director Gherardo Felloni.

We also partnered with Tom Ford to host our guests at Claridge’s in London for an exclusive dinner honoring the creative director Haider Ackermann. Noteworthy was also our two-day mountain experience with Moncler Grenoble in Gstaad, featuring an afternoon tea aboard the iconic La Belle Époque train, an intimate dinner, and snow activities with lunch on the Egli Mountain the following day. In the United States, we also hosted an intimate dinner with Dolce & Gabbana at Casa Cipriani to celebrate the exclusive holiday capsule in attendance of Domenico Dolce. In the spirit of being a community for luxury enthusiasts, Mytheresa has intensified its outreach to high-end luxury customers with three immersive shopping experiences in Asia, the United States, and Europe. In Jilin City, we invited guests for Mytheresa’s first-ever winter experience in China, combining Alpine Sport après-ski culture and a Mytheresa après-ski pop-up bar.

In New York, Mytheresa partnered with Honey’s Bakery for an immersive holiday gift shop experience on Madison Avenue, inviting guests to step into a world where the nostalgia of festive sweets met the sophistication of high fashion. Finally, in St. Moritz, Switzerland, Mytheresa opened an immersive hotel-inspired space offering guests a captivating experience for four months, envisioned as a private club. The setting brings Mytheresa’s world to life through trunk shows, presentations, and workshops. Please see our investor presentation for more details on these unique money-can-buy experiences. In summary, we are extremely pleased that Mytheresa, for the third quarter in a row, delivered above-market growth, and Martin will later show how the outstanding top-line results translated into very strong bottom-line results. Let me now comment on the luxury segment comprised of NET-A-PORTER and MR PORTER.

In the second quarter of fiscal year 26, we saw continued improvements as a direct result of the execution of the new strategic focus on the luxury customer seeking editorial inspiration and brand discovery, as well as a strict focus on full-price selling. This clear focus on customer and, of course, cost discipline already starts to bear fruits. In Q2 fiscal year 26, net sales declined by 1% versus Q2 fiscal year 25, demonstrating a clear improvement compared to the net sales decline in Q1 fiscal year 26 of -10.8% for NET-A-PORTER and MR PORTER combined. Europe, excluding Germany, increased by +14.4% in terms of net sales in Q2 fiscal year 26 compared to the prior year period.

The overall small net sales decline is still driven by too little investments into attractive new merchandise a year ago by the previous leadership, as well as still-needed improvements in the global shipping network and stock allocation. But we can already see improved results for the new upcoming spring/summer 2026 season. Beyond the overall net sales stabilization for NET-A-PORTER and MR PORTER combined, the average spend in terms of GMV per EIP, the so-called extremely important people, grew by plus 3.6% in Q2 fiscal year 2026 versus Q2 fiscal year 2025. The average order value last 12 months increased by an outstanding plus 13.6% to EUR 861 for NET-A-PORTER and MR PORTER combined. The customer satisfaction at NET-A-PORTER, measured by our internal NPS, reached 65.3% in Q2 fiscal year 2026, increasing by plus 1,200 basis points compared to Q2 fiscal year 2025.

All these KPIs point to a significantly improved health and quality of the business of NET-A-PORTER and MR PORTER. In the second quarter of fiscal year 2026, NET-A-PORTER started to show high-impact digital campaigns and exclusive product launches that underlined the fashion authority and positioning of both brands. NET-A-PORTER partnered with Manolo Blahnik for an exclusive capsule inspired by and to coincide with the Marie Antoinette Style Exhibition at the V&A Museum in London. Guests were invited to a private view of the exhibition after hours hosted by Christina Blahnik herself. To coincide with the global release of the Netflix documentary, NET-A-PORTER launched an exclusive capsule with Victoria Beckham.

NET-A-PORTER also launched an exclusive party capsule with fashion brand Rabanne, amplified with a star-studded event at the Scotch London, Le Club Le Rabanne, for the night, as well as Porter cover featuring Rabanne’s designer Julienne Dossena and Victoria Faola. This fashion moment launched the party season and made it onto the cover of WWD. NET-A-PORTER also unveiled an exclusive capsule with the whole of seasonal items only available at NET-A-PORTER. Also, two private seasonal digital pop-up shops were featured with Jia Jia, Jessica McCormack, and the House of Schiaparelli, confirming NET-A-PORTER as the destination for fashion discovery and unparalleled access for its customers. Editorial excellence continued with Serena Williams as December cover star of Porter magazine, marking one of the most-viewed covers of 2025. NET-A-PORTER also relaunched its same-day delivery service in London and New York, promising customers to shop today and wear it tonight.

The relaunch, including new training and uniforms, is a core element of NET-A-PORTER’s improved service commitment and was celebrated with a multi-channel holiday and gifting campaign. Also, MR PORTER started to show high-impact digital campaigns and exclusive product launches. MR PORTER launched Michael Rider’s debut collection for Celine as their exclusive online wholesale partner. The Solomeo exhibition, an exclusive 40-piece capsule collection with Brunello Cucinelli, also launched on MR PORTER. Further exclusive product launches included Gallery Dept., The Elder Statesman, and Moncler. MR PORTER also created a number of unique experiences for its EIPs, including an intimate dinner to bring together New York’s core menswear industry at new hotspot Wild Cherry, driving an earned reach of 6 million views across Instagram from invited guests. Brand director Jerry Langneed and the actor Billy Piper hosted a joint party upstairs at The Langdons, London.

The event was strategically timed to create buzz during the busiest holiday season, and female-focused talent drove awareness as female customers account for 34% of MR PORTER’s customers during gifting season. The dedicated event, Carousel on MR PORTER’s Instagram, was the fourth most-viewed post of all time, with over 1.5 million views and 74% new follower engagement. As part of the editorial focus of MR PORTER, brand-new video franchises were launched, including Raised Wear, Behind the Brand, and three gifting video campaigns. MR PORTER also launched its winter campaigns, including Weekend Away, The Great Outdoors, and Party Wear. MR PORTER’s journal feature on musician and writer Jörn drove 20,000 visits in its first week, while the video drove 1.6 million views on Instagram, making it the second-most-read talent story and viewed Instagram post in 2025. Please see our investor presentation for more details on NET-A-PORTER’s and MR.

NET-A-PORTER’s unique editorial content and campaigns. To sum it up, the second quarter has seen further sequential improvements at NET-A-PORTER and MR PORTER, demonstrating that we are making very good progress in the turnaround of both businesses under the new leadership team. Martin will later provide more details on the progress achieved in bringing the NET-A-PORTER and MR PORTER luxury segment back to profitability in the near future. Lastly, let me comment on YOOX performance in the second quarter of fiscal year 2026. We are pleased with the progress of the ongoing separation of the YOOX business from the luxury segment. The YOOX management has made very good progress to focus on its healthy core and operational fulfillment models that are profitable, creating a lean business model specifically tailored to the lower margin and lower AOV nature of the off-price business of YOOX.

In Q2 fiscal year 2026, net sales declined by -7.3% versus Q2 fiscal year 2025 for YOOX, a clear improvement compared to the net sales decline in Q1 fiscal year 2026 with -16.6%. In Europe, including Germany, a clear geographic focus going forward: net sales already increased by +13.9% compared to Q2 fiscal year 2025. The overall net sales decline is mainly driven by a renewed focus on a healthy core for the YOOX business and the deprioritization of overseas markets with high cost to serve. While the overall net sales declined for YOOX, the top-spending customer average spend in terms of GMV grew by +4.1% in Q2 fiscal year 2026 versus Q2 fiscal year 2025. The average order value last 12 months continued to increase by a remarkable +11.4% to EUR 255 in Q2 fiscal year 2026.

YOOX customer satisfaction, measured by our internal NPS, reached 50.2% in Q2 fiscal year 2026, significantly up from 34.5% in Q1 fiscal year 2026 and compared to 29.9% in Q2 fiscal year 2025, showcasing significant improvements of customer service operations. All the above KPIs clearly indicate good first results of the focus on the healthy core of the YOOX business. In the second quarter of fiscal year 2026, YOOX started to also deliver on its brand promise, empowering customers not only to own the pieces they desire but to unlock valuable community moments. For the first time in many years, YOOX created an intimate holiday fashion dinner at Nilufar’s iconic Nilufar Depot, in line with its holiday campaign theme. The event was designed to connect leading fashion media and key opinion leaders through culture and design embedded in the YOOX brand vision.

YOOX also kicked off a community-building event in Berlin through a Fashion Meets Art event hosted at the surprising NARA Gallery location. The event brought together fashion insiders, artists, and cultural tastemakers from diverse backgrounds, united by a shared passion to art and style. By blending fashion with contemporary art, YOOX created a space for meaningful connections, creative exchange, and authentic brand engagement, reinforcing YOOX’s role as a cultural connector. Both events boosted engagement through community building, delightful experience, and increased the guests’ emotional bond with YOOX. Please see our investor presentation for more details on these events. To sum up, the focus on a healthy core for YOOX shows first clear results and the much-improved quality and health of the business. And now, after having reviewed the good commercial results and strong improvements across all our businesses, I hand over to Martin to discuss the financial results in detail.

Thank you, Michael. As Michael mentioned, we’re very pleased with our strong results in Q2 of our fiscal year 2026, running from October to December 25. Just eight months after the acquisition of Wineapp, we already report top-line growth on group level, with net sales growing +1.1% reported and +5.7% on a constant currency basis. In addition, we are already turning profitable on group level with an adjusted EBITDA margin of +2%. All three segments improved the performance versus the prior year quarter on top and bottom line. Our cost initiatives are effective with decreasing SG&A cost ratios, and we were able to report strong operational cash flow of +EUR 118.5 million in the quarter. All these underline the success of our transformation plan and is fully in line with our expectations.

As a reminder, we are targeting EUR 4 billion in sales and an adjusted EBITDA margin of 7%-9% medium term. As planned, we expect to close the sale of the outlet in the current quarter, and our off-price business is now fully focused on the YOOX turnaround. The sale of the outlet will not have any effect on our segment and group reporting, as it has already been classified as discontinued operations. Let me first review LuxExperience B.V. performance at group level. I will then walk you through the performance of our three segments: Luxury Mytheresa, Luxury NET-A-PORTER & MR PORTER, and the off-price business of YOOX in more detail, and give an update on guidance. Unless otherwise stated, all numbers refer to euro.

For Q2 fiscal year 2026, and for the first time since the acquisition of Wineapp three quarters ago, we are already reporting top-line growth on group level. On group level, net sales grew +1.1% reported and +5.7% on a constant currency basis. On GMV, +0.2% reported in the quarter and +4.7% growth on a constant currency basis. This is a clear acceleration relative to Q4 with -5.3% year-over-year and Q1 with -4.3% year-over-year GMV decline. In the first six months of fiscal year 2026, LuxExperience had a GMV of EUR 1,274 million and net sales of EUR 1,202 million. Our SG&A transformation initiatives are clearly visible at group level.

Compared to the preceding Q1 of fiscal year 2026, the SG&A cost ratio decreased 270 basis points from 21.8% to now 19.1% in Q2 fiscal year 2026. For the first time since the acquisition of Wineapp, we achieved a positive adjusted EBITDA on group level with an adjusted EBITDA margin at +2%. Both the top and bottom line show clear signs of progress in our ongoing transformation and are fully in line with our expectations. Operating cash flow of the LuxExperience group was a positive EUR 118.5 million, driven by the underlying seasonality in our business. For the first half of fiscal year 2026, operating cash burn was only at minus EUR 30 million. In Q3 of fiscal year 2026, we expect that the cash effects of our layoff program will be visible. This will come in addition to the seasonality of our business.

We, therefore, expect a negative operating cash flow in Q3. For the full fiscal year 2026, we expect operating cash burn to stay well below EUR 150 million, given fiscal year 2026 as a key transition year for our transformation plan. As a reminder, we’re executing our transformation plan on a fully funded basis, with total cash outflow during all years of the transformation plan to range between EUR 350 million and EUR 450 million. We expect to break even on an operating cash level in two years. The group ended Q2 of fiscal year 2026 with cash and cash financial investments of in total EUR 543.6 million. Together with our non-utilized revolving credit facilities, our total available funds are at EUR 724.2 million. We are in an ideal situation to operate the fully funded transformation and our growing business model completely debt-free. Given the seasonality in our business, Q2 is typically a strong quarter.

The performance in Q2 underlines the success of our transformation plan fully in line with our expectations. We confirmed our medium-term targets of EUR 4 billion in net sales and an adjusted EBITDA margin of 7%-9%. Let’s now review the performance of our Mytheresa business. During the second quarter of fiscal year 2026, GMV grew by +9.9% to EUR 268.9 million compared to the prior year period. On a constant currency basis, GMV grew by +12.7% year-over-year. Net sales grew to EUR 242.7 million in the quarter, representing a +8.8% increase. On a constant currency basis, net sales growth is at +11.6%. We continue to significantly take share in an overall soft market. In Q2, Mytheresa’s gross margin increased by 140 basis points to 52.3% as compared to 50.9% in the prior year period.

We were able to, again, significantly increase the gross profit margin while growing top-line double-digit. Main driver was our continuous effort to increase the full-price share. Given the new U.S. tariff situation, in Q2 of the fiscal year, the shipping and payment cost ratio was up 150 basis points compared to Q2 of fiscal year 2025, but at similar levels compared to the previous quarter. As we pay all duties for our U.S. customers, the cost increase for us is reflected in our shipping and payment cost ratio. If you excluded the duties cost, the shipping and payment cost ratio decreased by 90 basis points from 8.5% to 7.6% compared to Q2 of fiscal year 2025. Main drivers of this improved cost ratio were higher AOVs and lower negotiated shipping fees based on higher group volumes.

Same as in the previous quarters, the overall increase in the shipping and payment cost ratio in the P&L is offset by an increase in our gross profit margin. In Q2 of fiscal year 2026, the marketing cost ratio decreased by 70 basis points from 12.3% in Q2 of fiscal year 2025 to 11.6%. We are successfully capturing market share, but are mindful of the overall soft market situation. As targeted, we will increase marketing spend throughout the remaining fiscal year if deemed effective. Our executed cost savings measures are visible in the selling general and administrative SG&A cost ratio decreasing by 220 basis points to 11.7% compared to the prior year quarter. SG&A expenses on absolute numbers decreased by -7.7% compared to the previous year quarter, and the cost ratio further benefited from the strong top-line increase.

Subsequently, the adjusted EBITDA margin expanded by 200 basis points during the quarter to 9.3% as compared to 7.3% in the prior year period. Adjusted EBITDA grew by EUR 6.4 million versus the prior year quarter, to EUR 22.6 million in Q2 of fiscal year 2026. Just as a reminder, due to the seasonality of our business, our fiscal Q2 is always a very strong quarter. For the first six months of our fiscal year, the adjusted EBITDA margin significantly improved from 4.5% to 6.5%. We are continuing our effective inventory management with inventory levels at Mytheresa down -2.5% compared to previous year despite double-digit top-line growth. Let me now comment on the Luxury NET-A-PORTER & MR PORTER segment in more detail. In the second quarter of our fiscal year 2026, GMV only declined by -1.9% to EUR 290.7 million.

This was a strong sequential recovery compared to the -10.8% GMV decline year-over-year in the preceding Q1 of fiscal year 2026. On a constant currency basis, GMV even increased by +4.9% in the quarter. Net sales were at EUR 277.1 million, a -1% decline year-over-year. Also at net sales level, a strong sequential recovery from the -10.8% net sales decline in the preceding Q1. On a constant currency basis, net sales grew +6% year-over-year in Q2 of fiscal year 2026. The new leadership team is working on improving the current and upcoming season’s buying volumes and aligning the subsequent marketing strategy to re-embark on top-line growth again. We expect to see continued GMV and net sales growth in the second half of this fiscal year.

The gross profit margin in Q2 of fiscal year 2026 decreased to 46.1% due to one-time effects in the previous year. Excluding this effect, the underlying operative gross margin was stable compared to the previous year quarter. Core focus of our transformation plan is to bring down the SG&A cost ratio. The SG&A cost ratio in this quarter was at 22.7% of GMV, significantly down from 27.6% in the previous quarter. It was also down compared to Q2 of previous year at 23.8% if you include capitalized IT development costs. With the communicated layoff program now being executed, we will see more significant effects in Q3 and Q4 of this fiscal year. The 22.7% SG&A cost ratio in this quarter compares to the 11.7% at Mytheresa and signals the more than 1,000 basis points opportunity for us to achieve significant cost savings.

We will continue to bring down this difference with adjusting the operating model, the IT replatforming, corporate overhead cost savings, and re-embarking on top-line growth. Warehouse closures are executed, and the delivery models are being adjusted. Studio and customer care operations have already been consolidated. The unified data platform is fully protected, and the overall IT replatforming is being executed according to plan and without a single delay. The layoff programs in all jurisdictions are now fully concluded, with effects visible in Q3 and Q4 of fiscal year 2026. In sum, our comprehensive turnaround plan until fiscal year 2028 is being executed diligently and fully in line with our expectations. The NAP Mr. P. segment already almost broke even in the quarter with an adjusted EBITDA margin at -0.7%.

Therefore, also on bottom line is significant sequential improvement from the -6.9% adjusted EBITDA margin in the preceding Q1 of fiscal year 2026. This improvement clearly highlights the impact of our actions so far to strengthen profitability. At the same time, our quarterly performance is subject to the typical seasonality of our business, with Q2 and Q4 generally stronger and Q1 and Q3 generally weaker. With the full execution of our transformation plan and bringing down the SG&A cost ratio, we expect the NET-A-PORTER MR PORTER segment to achieve comparable profitability levels to the Mytheresa segment medium-term, with a targeted adjusted EBITDA margin of +7%-9% medium-term. Inventory levels at NET-A-PORTER MR PORTER are down -3.8% to previous year, and we will continue to enable top-line growth at NET-A-PORTER MR PORTER.

with adequate working capital and improvements in the global shipping network and stock allocation. Let me now review the financial performance of the off-price business of YOOX. In line with our transformation plan at YOOX, we are focusing on the healthy core of the business, deprioritizing overseas markets with high cost reserve, discontinuing the unprofitable marketplace model, and implementing a lean operating model supported by a simplified off-price tech environment. Also at YOOX, a significant improvement in top-line performance. Continuing the path of a more comprehensive restructuring effort at YOOX and with focus on profitable customer cohorts, GMV declined -12.1% in Q2 year-over-year to EUR 125.3 million compared to -19.3% in Q1 year-over-year. On a constant currency basis, GMV only declined -9.4% in the quarter. Net sales were also at EUR 125.3 million, a -7.5% decline year-over-year.

Also at net sales level, strong sequential recovery from the -16.6% net sales decline in the preceding Q1. On a constant currency basis, net sales declined only by -4.6% in Q2 year-over-year. This significant sequential improvement clearly indicates good first results of the focus on the healthy core of the YOOX business and on European markets and also includes the effect of discontinuing the unprofitable marketplace model. With the focus of YOOX on the European customer and despite increasing US duty rates, the shipping and payment cost ratio stayed mostly stable, only increasing 30 basis points from 14.5% in Q2 of fiscal year 2025 to 14.8% in Q2 fiscal year 2026.

As Michael mentioned, the operational focus of YOOX is on a fulfillment model that is profitable, creating a lean business model specifically tailored to the lower gross margin and lower AOV nature of the off-price business of YOOX. The core focus of our turnaround plan is to bring down the SG&A cost ratio also at YOOX. The SG&A cost ratio in this quarter was at 26.9% of GMV, down from 29% in the previous quarter. On an absolute level, SG&A expenses in Q2 of fiscal year 2026 decreased by EUR 4.6 million or -12.1% compared to previous year Q2 if you included all the IT development costs. This was achieved despite the stranded costs from the separation of the outlet. With the communicated layoff program now being executed, we will also see more significant effects in Q3 and Q4 of this fiscal year.

We are significantly consolidating warehouse, studio, and customer care operations. The tech legacy cleanup and simplification is going well and with full speed. Corporate costs are trimmed down and aligned to a lean business model. With a focus on healthy European targeted growth, the SG&A cost ratio will continue to decrease to the targeted levels. During the second quarter of fiscal year 2026, the adjusted EBITDA margin improved significantly from -18.1% in Q1 of fiscal year 2026 to now -6% in Q2 of fiscal year 2026. With the execution of our defined transformation measures, we expect to return to adjusted EBITDA profitability of YOOX in 12-15 months and return to top-line growth already in fiscal year 2027. Inventory levels at YOOX are -8% to previous year.

Given our H1 of fiscal year 2026 performance fully in line with our expectations and with more visibility in the ongoing full fiscal year, we would like to provide an update on guidance for our full fiscal year expectations. With the implementation of our transformation plan executed in line with our targets, we narrow the ranges of our existing guidance for the full fiscal year 2026. For the full fiscal year 2026, we now expect GMV and net sales between EUR 2.5 billion-EUR 2.7 billion, previously EUR 2.4 billion to EUR 2.7 million, and an adjusted EBITDA margin of -1% to +1%, previously -2% to +1%. With the underlying seasonality in our business, we expect Q3 softer than Q4, with Mytheresa growing high single digit in H2 and full fiscal year 2026. For the luxury business of NET-A-PORTER and MR PORTER.

P., we expect positive growth rates towards the end of the fiscal year and therefore expect in sum a low single digit GMV decline for the full fiscal year 2026. For the off-price business of YOOX, we expect top-line to further moderate through H2 of fiscal year 2026 with overall low teens top-line decline. Our medium-term targets remain unchanged with our EUR 4 billion net sales target at an adjusted EBITDA profitability of +7%-9% and to return to 10%-15% annual growth rates. We will continue our track record of diligently executing our plans and delivering what we target. With this, I hand over to Michael for his concluding remarks.

Thank you, Michael. We are extremely pleased with our second quarter of fiscal year 2026 earnings results. LuxExperience has delivered strong results and improvements across all three segments and is fully on track with its transformation plan targets confirmed by the strong second quarter. The turnaround at YNAP has clearly started while Mytheresa continues to deliver remarkable above-market results. The continued outstanding performance of Mytheresa demonstrates our proven ability to drive profitable growth in digital luxury. The secret sauce is now applied to our new businesses. Overall, LuxExperience is perfectly positioned to benefit from the sustained growth of digital luxury and the ongoing consolidation within the sector, allowing us to capitalize on significant market opportunities. We are fully committed to being a reliable partner operationally, strategically, and financially for all our partners. We will continue to generate significant value for our customers, brand partners, and shareholders.

With that, I ask the operator to open the line for your questions.

Martin Beer, Chief Financial Officer, LuxExperience: 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, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Please stand by 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.

Operator: Hi. Thank you, Michael and Martin. Really nice results all around. On the revenue side, they were better. Which regions or divisions were better than you expected, and how would you contrast how Europe looks relative to the nice momentum you’re seeing in the Americas? Also, on the 140 basis points at Mytheresa, are you expecting full-price selling to continue to fuel gross margin expansion going forward there? And what should we know about the base case for what’s included in guidance for shipping as well? And would love your take on the main drivers of raising the low end of guidance as well. And finally, on the SG&A cost ratios, you made a lot of progress there. What’s been easier versus harder in terms of lower-hanging fruit versus longer-term as you manage that? And how are you balancing the SG&A strategy relative to continuing to offer great customer-facing service?

Thank you.

Thank you, Oliver. A whole battery of questions, so let me try to cover them and then hand over to Martin for some of the guidance and margin questions. So region, as explained, YOOX focuses on Europe. Sees good traction, 14% growth. So Europe is really a good market for the off-price market sector. NET-A-PORTER, Mytheresa, we, of course, have good opportunities in the US. Mytheresa has seized them. 25% growth in the US for Mytheresa in the second quarter in constant currency, even over 30%. So we see strengths in the US, and we believe it will continue, and we see good strengths in Europe. Asia is a mixed story, but I also always want to stress the Arabic Peninsula as good opportunities for growth. In terms of full-price selling, we have seen now many quarters of increased gross margin thanks to increasing the share of full price.

We still believe, also looking at historical numbers, that we can continue to increase the full-price share until we get back to sort of the normal that we have seen before COVID. So there is still room to improve, and we expect to continue to improve. On the SG&A, I mean, obviously, there are some structural changes that will take time, particularly technology. But on operations, consolidating warehouses, consolidating customer care centers, consolidating photo studios, we have actually progressed enormously quickly and have already closed warehouses, pulled all photo studios in Milan. So we’re making good progress, but I can assure you we have taken more actions than what is visible in the bottom line still because some of them have time lags. So we are well on track.

The whole transformation, the whole turnaround will take until end of 2027, but well on track, and that’s why we confirmed today our medium-term target of 7%-9%. And maybe for some of the guidance and shipping questions, Martin?

Martin Beer, Chief Financial Officer, LuxExperience: Yeah. Happy to answer. So I mean, the overall profitability in H2 is expected to be around the same level at Mytheresa as we saw in H1, so the 6.5%. In the previous year, H2, we had 5.2%. So it’s exactly as you call out. You always have to compare Q1 and Q2, the weaker quarter and the strong quarter, the same logic on Q3 and Q4. On the shipping and payment cost ratio, the duties are all included, and we see a stable trend in Q1 and Q2. So this will continue, and therefore, the improved profitability at the Mytheresa segment to an expected overall around 6.5% adjusted EBITDA margin is driven by the increase in the gross profit, exactly what Michael said, on continuing to increase the full-price share and therefore seeing improvements in the gross profit margin.

Operator: Okay. And on the revenue side, which one beat relative to expectations, or what should we know about how revenue trended relative to your guidance this quarter?

Martin Beer, Chief Financial Officer, LuxExperience: I mean, the overall revenue guidance is also triggered, I mean, by all three segments. So we saw in H1 at Mytheresa a +11.6% GMV growth. And so we guide towards a high single-digit top-line revenue guidance for Mytheresa in the second half and therefore a high single digit for the full fiscal year. But we see a very strong continuous trend at Mytheresa. So this is really a huge strength at Mytheresa. And that, MR PORTER, and Michael called it out, is driven by now improved buying volumes, aligning marketing, and improving the stock allocation. And therefore, we expect in the later part of H2 also top-line growth at NET-A-PORTER and MR PORTER, and therefore expect for the full fiscal year a low single decline. But the sequential improvement that we see on top-line really shows and now will continue at MR PORTER.

At YOOX, it takes a bit longer with the focus on the healthy core of the customer, with a focus on Europe and moving out of the unprofitable marketplace model. Therefore, we see low teens decline in net sales for the second half and for the overall fiscal year. The top-line development also mirrors the transformation plan and is fully aligned with the expectations.

Your next question comes from the line of Matthew Boss with J.P. Morgan. Your line is open. Please go ahead.

Matthew Boss, Analyst, J.P. Morgan: Thanks and congrats on a nice quarter.

Operator: Thank you, Matt.

Matthew Boss, Analyst, J.P. Morgan: Michael, with the seismic shifts that you cited in the luxury sector, could you speak to how your portfolio is positioned today, maybe offensive initiatives that you’ve put into place to capitalize on market share globally and new customer acquisition?

Operator: I mean, obviously, with its fine-tuned machine, Mytheresa is best positioned to take advantage of these opportunities. And as we highlighted in West’s presentation, it’s now the second quarter where we grew over 20% in the U.S., at constant currency over 30%. So we are taking market share in the United States. We win customers. We increase our share of wallet with existing customers. But NET-A-PORTER and MR PORTER are absolutely well-positioned as well. They have actually even stronger brand awareness and brand appreciation in the U.S. They are not as finely tuned yet. There’s still work to be done. But with Wales operations out of Jersey being able to deliver same day in Greater Manhattan, there’s real opportunity also for NET-A-PORTER and MR PORTER.

As we come with fall/winter, with a new season buy, completely done by our new teams, we will see real good performance by NET-A-PORTER and MR PORTER in the US in Q3, Q4. It’s all about presenting the best selection, presenting the best curation, having the product that customers are looking for. At a global level, we are positioned as the one partner for brands for full-price selling, for a differentiated tone of voice. That’s how we see ourselves, and that’s what we strive to be.

Matthew Boss, Analyst, J.P. Morgan: Great. And then Martin, as a follow-up.

Martin Beer, Chief Financial Officer, LuxExperience: Your next question comes from the line of Grace Smalley with Morgan Stanley.

Operator: Sorry. Was Matt cut off, or?

Speaker 6: Sorry. I didn’t hear anything from Matt.

Operator: Yeah. I had a follow-up question. Maybe you can bring it back, and we first do Morgan Stanley.

Martin Beer, Chief Financial Officer, LuxExperience: My apologies. Please stand by. Your next question comes from the line of Grace Smalley with Morgan Stanley. Your line is open. Please go ahead.

Grace Smalley, Analyst, Morgan Stanley: Hi, everyone. It’s Grace. Hopefully, we can go back to Matt afterwards. I was going to ask a question more broadly on the luxury industry given your insights across all brands. Clearly, we had this period of significant growth for luxury followed by more of a digestion period over the last couple of years, which is sort of the if you look at the backdrop now, where do you think we are in terms of the general luxury cycle? What are you seeing both in terms of the aspirational consumer versus the high net worth, and also in terms of creative cycles and the product newness? We’d be interested to hear your thoughts. Thank you.

Operator: Thank you, Grace. We believe we look at a very solid calendar year 2026. As you can see in our numbers, there’s double-digit growth. It’s true. Some of the big names had to go through some transition phase, switching creative directors. But at the same time, as you’re very familiar, we have seen fantastic numbers by the likes of Brunello Cucinelli, by the likes of The Row, by the likes of Loro Piana. And as we saw real investment into new creativity in the last fashion season in September with a lot of new creative directors, we believe luxury has gone through a transition phase and maybe, as you said, a digestion phase. But we believe there is upside for luxury as a whole in the coming months. I think, as always, there will be some brands and some players that will take more advantage of it than others.

It’s still in the quality, in the desirability. But we have seen good collections in September, and they’re starting to be delivered now in February. We already pre-launched new Gucci. We will have launches from Balenciaga, from Saint Laurent, from Versace. So a lot of new impetus. So we believe it will be a good year, of course, all depending on the stability in the macro environment.

Grace Smalley, Analyst, Morgan Stanley: Great. Thank you, Federica. Then just to follow up on that, are you seeing any changes in terms of the brand’s pricing architecture or the different price points that your consumers are gravitating to?

Operator: I mean, we clearly are in a phase where there’s very little price increases. We’ve gone through a phase of massive price increases, also driven by scarcity in raw materials. There’s a bit of a pause there. So I always say it’s an equation between price and desirability. And as prices keep standing and hopefully desirability increase, then we will see that result. And then there is movement, still early, on the contemporary aspirational side. It will be interesting to see in the coming four weeks whether we see also progress. The progress so far we have seen are really in the big houses, I must say.

Martin Beer, Chief Financial Officer, LuxExperience: Your next question comes from the line of Matthew Boss with J.P. Morgan. Your line is open. Please go ahead.

Matthew Boss, Analyst, J.P. Morgan: Great. Great. Thanks. So Martin, for follow-up, I guess, could you elaborate on the progression of EBITDA margins into fiscal 2027? Or what I wanted to know is relative to this year’s flat piece at the midpoint, what’s the best way to model the timeline for the transformation actions that you’re taking across the portfolio as it relates to the bottom line?

Martin Beer, Chief Financial Officer, LuxExperience: Yeah. So you’re referring to already fiscal year 2027. Obviously, we will give guidance then in the summer. In the last quarter, we always give follow-on fiscal year. But clear, I mean, you see the sequential improvement. It is, again, always nicely laid out by the three segments. It’s driven by the three segments, which are completely, I mean, different than the current state, and then all will align towards the medium-term target of EUR 4 billion in net sales and 7%-9% adjusted EBITDA margin. So we will see a sequential improvement in the second half of fiscal year 2026, obviously driven by continued improvement of Mytheresa, NET-A-PORTER, MR PORTER regaining profitability, and the ongoing restructuring efforts at YOOX. And obviously, this will then turn into fiscal year 2027, where we obviously target along our five-year plan improvements.

This will obviously not be a linear function towards our medium-term targets of 7%-9% in fiscal year 2029, 2030. We will give an update. I’ll give an update on the fiscal year 2027 expectations in our next quarter report here.

Matthew Boss, Analyst, J.P. Morgan: Maybe just one follow-up. When you cite medium term, is there any quantification? How long is medium in your view?

Martin Beer, Chief Financial Officer, LuxExperience: It’s fiscal year 2029 and fiscal year 2030 is our medium term.

Matthew Boss, Analyst, J.P. Morgan: Okay. Great. Helpful color. Thank you.

Martin Beer, Chief Financial Officer, LuxExperience: Thank you.

Your next question comes from the line of Anna Glaessgen with B. Riley Securities. Your line is open. Please go ahead.

Anna Glaessgen, Analyst, B. Riley Securities: Good morning, and thanks for taking my question. I guess I’d like to start near term. Given the disruption at a luxury department store in the US, to what extent does guidance embed, or do you expect some disruption as there could be some promotions coming from a competitor? Thanks.

Operator: I mean, it’s hard to predict how the department store sector in the U.S. will unfold. As you know, there are Chapter 11 proceedings. I fundamentally believe that what the last years have shown is that the only way to have a sustainable, profitable business model is to focus on full-price selling. Promotions are very short-term. I hope that with whatever comes out of the proceeding, a new entity that will follow that principle because otherwise, there’s no sustainable, profitable business model. We have proven that. We had moments in our history where other competitors tried to find short-term gains. We always stick to our policies, and it has paid off.

So honestly, regardless of what will happen in the U.S. department store sector after Chapter 11, we feel there is market share gains to be had in the U.S. market because also a lot of this has started to be confusing and disappointing to customers. What you see is what you get at Mytheresa, at NET-A-PORTER, MR PORTER. It’s inspiration. It’s great service. It’s curation. That’s what we focus on. We see we can win with this.

Anna Glaessgen, Analyst, B. Riley Securities: Got it. Thanks. And then shifting to the YNAP businesses, it seems like there’s been some nice progress made with some year-over-year inventory reductions. Can you speak to the overall health of the inventory and how much work is left to be done?

Operator: Martin, you want to speak to inventories?

Martin Beer, Chief Financial Officer, LuxExperience: Yes. Yes. Happy to speak to inventories. I called out the healthy inventory levels at Mytheresa with a good aging structure and stable, a bit declining despite double-digit growth. So that continues to be in great shape. NET-A-PORTER, MR PORTER is more working with a legacy of having bought too little. And therefore, we are increasing. We’re investing in inventory to enable the growth in addition to all the other measures of the transformation plan. So inventory level is down at NET-A-PORTER, driven by past-time decisions. At YOOX, also inventory down. So the logic of the inventory, I mean, or the current state of the inventory, it’s fully in line with expectations. It’s good. It’s healthy. But we need to grow the inventory. We need to invest in working capital as this is also targeted in our transformation plan.

So from the inventory side, the new teams, new leadership is heavily working on fall/winter 2026 and spring. It’s now spring/summer 2027.

Your next question comes from the line of Blake Anderson with Jefferies. Your line is open. Please go ahead.

Blake Anderson, Analyst, Jefferies: Hi, guys. Thanks for taking my question. So wanted to double-click on luxury YNAP. That was strong in the quarter. I believe it was 6% growth excluding currency, which was a bit better and earlier than you’d expected. Can you unpack what drove the growth there in terms of new customers or the new merchandise you spoke to and then AOV versus units? And then what are you expecting for that business in the second half in terms of growth?

Operator: I mean, the growth mirrors very much the pattern that we have seen at Mytheresa. It starts from the top. So it sits with the big spenders. Of course, it’s driven by really focusing on that customer. It is driven by AOV increase. We have called out that we have seen double-digit AOV increases, both at MR PORTER and Net-a-Porter. Two-thirds is ARV, so more expensive items, which is not higher prices. It’s actually sort of picking items higher at the ladder. And also one-third is more units. And that’s where the growth is coming from. And then what I always stress, we are massively reducing promotions. We have cut back on discounts. And that also helps, of course. Full-price selling is not only good for margin. Full-price selling is also good for the top line.

This focus on the top spender and this continuous detox, so to speak, from discounting and promotion, we will continue. This will be part of the strategy going forward, of course. Then with Q3, Q4 particularly, where the fall/winter season comes into play, where we have bought more, where the new team has really driven the curation, we expect even better traction on the fall/winter collections.

Blake Anderson, Analyst, Jefferies: Great. Thank you. And then I wanted to ask, my follow-up would be on the operating cash flow target to your timeline. Martin, anything you would call out specifically there in terms of drivers that could get you there potentially earlier? And then any color on the shape of the improvement over the two years?

Martin Beer, Chief Financial Officer, LuxExperience: Yeah, Blake. I mean, I really called out in the call that you always have to combine Q1 and Q2 and Q3 and Q4 given the seasonality of the business. So for the first half, given our strong operational cash flow in Q2, we have a cash burn of -EUR 30 million. And for the full fiscal year, I expect overall cash burn to be well below EUR 150 million given fiscal year 2026 is our key transition year. So that implies that the payout of the severance packages and other transformational payouts will be in this H2, in this coming H2, so Q3 and Q4, leading to an overall cash burn of below EUR 150 million for the full fiscal year. And this is the key transition year. I mean, the transformation plan is a two-to-three-year program.

We clearly guided on the overall cash burn for the whole plan for all years. So we expect then the cash burn to be still significant next year but then will decrease. I also called out that we expect to be cash break-even from operational cash in two years. So it is fiscal year 2026. The second half fiscal year 2026 is a key cash outflow. Fiscal year 2027 will continue to be negative. But we are really happy with the flow, fully in line with our expectations. So cash will not be the limiting factor for our transformation plan for returning to profitability and for re-engaging on top-line growth. I think it is really worthwhile to repeat that we work on a fully funded transformation plan, and we work on a completely debt-free environment.

I have a very strong balance sheet on top to the additional cash for the transformation plan and the buffer.

There are no further questions at this time. This concludes today’s call. Thank you for attending. You may now disconnect.