LuxExperience Turns Profitable for Q4 and Fiscal Year

With its turnaround “in full gear,” LuxExperience swung into the black in its fiscal fourth quarter, driven by continued strong performance at Mytheresa and operational reengineering at Net-a-porter and Yoox.

“We are very pleased that we have group sales growth and profitability,” said Michael Kliger, chief executive officer of the Munich-based digital luxury group, in an interview.

“Where is it coming from? Mytheresa continued on its trajectory of double-digit growth and high profitability,” Kliger said. “Net-a-porter swung to growth and profitability last quarter. We predict this continues in the next fiscal year. And Yoox achieved growth for the first time since the acquisition, and halved its loss. So the turnaround is in full gear. There was a significant swing from unprofitability to profitability at the group, driven by a strong last quarter. We fully achieved guidance.”

LuxExperience purchased Yoox Net-a-porter from Richemont in April 2025 creating a digital luxury powerhouse.

Adjusted net income for LuxExperience’s fiscal fourth quarter reached 7.8 million euros and compared with a loss of 2.4 million euros a year earlier. For the fiscal year ended June 30, LuxExperience reported adjusted earnings before interest, taxes, depreciation and amortization of 11 million euros, which is a 64 million euro swing from the year before when the company lost money.

“We achieved 2.1 percent positive adjusted EBITDA margin in the last quarter, and for the full fiscal year, 0.4 percent positive adjusted EBITDA margin,” Kliger said.

Net sales in the quarter rose 7.6 percent, at current exchange, to 653.6 million euros. For the full year, sales increased 3.2 percent to just over 2.47 billion euros.

“For the next fiscal year, which already started in July, we expect midsingle to high-single-digit growth in net sales for the group overall, which is a further acceleration. And we expect an adjusted EBITDA margin of 2 to 3 percent, which is also another significant increase over the just-closed fiscal year,” Kliger said.

The CEO cited positive trends in fine jewelry, gowns and expensive ready-to-wear, adding that the Munich-based company has been performing “very well” so far in its fiscal first quarter, which runs through September.

The LuxExperience portfolio includes Mytheresa, which focuses on highly curated women’s luxury fashion and personalization for the most affluent; Net-a-porter, which also focuses on luxury fashion but with a broader selection and a different target audience; Mr Porter, which focuses on luxury menswear, and Yoox, offering off-price designer goods.

Recapping the recent performances at the company’s divisions, Kliger said that at Mytheresa: “The story is absolute continued gold standard performance. We grew 10.2 percent in the last quarter and 11.5 percent for the full fiscal year. We cruised through the fiscal year with double-digit [sales] growth, and at the bottom line, had an adjusted EBITDA margin last quarter of 6.6 percent, and for the full fiscal year, 6.3 percent. We achieved adjusted EBITDA profit [for the year] of 62 million euros, which was 40 percent more than the year before.

For Net-a-porter and Mr Porter, “The last quarter really was a turnaround,” Kliger said. “Combined, they grew 5.6 percent, and had a profitable EBITDA margin of 2.7 percent. This is the first quarter since we acquired the business where we had growth and profitability. We now really see ourselves on that trajectory.…It still averaged out for the year at 0.5 percent sales growth, and minus 0.6 percent EBITDA margin. But it’s really a continued improvement from H1 to H2. The last quarter was the best. There’s momentum. Net-a-porter and Mr Porter are back, growing, and profitable.”

Kliger characterized Yoox as “another success last quarter.”

“The business grew 6.6 percent, marking the first time since the acquisition that we have growth for Yoox in a quarter,” he said. “There was still a decline of 5.8 percent for the year, but for Yoox it’s really a success. We know the most profitable region for that business is Europe where the business grew 23 percent last quarter. The business is still losing money, but we halved the loss,” from almost 80 million euros in the year-ago period to 45.5 million euros in the most recent fiscal year.

“For the second half of the calendar year, we expect continued strength in the U.S., and continued strength for Mytheresa and Net-a-porter,” Kliger said. “It’s more driven by our focus on our big spenders.”

Among the recent designer and brand additions were Fendi, Bulgari and Piaget at Mytheresa, and Jessica McCormack at Net-a-porter.

The best-performing brands across the LuxExperience platform included Pieter Mulier, Brunello Cucinelli, Phoebe Philo, Khaite, Dolce & Gabbana and Zegna.

Asked if the disruptions at the Exemplar Luxury Group, which operates Neiman Marcus, Saks Fifth Avenue and Bergdorf Goodman, contributed to the gains at LuxExperience, Kliger said: “It definitely played a role because in addition to operational challenges, they did not have enough stock. But even without those challenges at Exemplar, we would have seen the U.S. being a very good market for us, because that’s where the top client is really spending.”

Source link