LuxExperience continues to show progress in the turnaround efforts necessitated by last year’s Yoox Net-a-porter acquisition.
On Tuesday, Munich-based LuxExperience Group reported improved profitability, full-price selling, better margins and heightened cost savings through streamlining over the fiscal third quarter ended March 31. LuxExperience operates the Mytheresa, Net-a-porter and Mr Porter luxury e-commerce websites as well as the Yoox off-price e-commerce website.
Net sales for the quarter reached 618 million euros at constant currency, which was flat to last year’s quarter. Gross merchandise sales grew 0.3 percent, at constant currency, to 654 million euros.
Net losses tallied 31.2 million euros; adjusted net losses were 15.3 million euros. Main adjustments centered on staff severance payments, costs for closed facilities and discontinued technology services.
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Adjusted EBITDA reached 5.7 million euros with an adjusted EBITDA margin of 0.9 percent.
The cash position was strong with 436.1 million euros and the balance sheet is debt free.
The selling, general and administrative cost ratio, as a percent of sales, has been improving this year, from 21.9 percent in the first quarter and 19.1 percent in the second, to 18.3 percent in the third. LuxExperience has been streamlining warehouse, studio production and customer care operations while reducing corporate costs including insurance, technology and carrier fees.
Mytheresa in April 2025 closed its deal to buy Yoox Net-a-porter from Compagnie Financière Richemont, forming LuxExperience. Richemont which provided LuxExperience with 555 million euros and a 100 million-euro credit facility for Yoox Net-a-porter, in exchange for 33 percent of LuxExperience shares. Best practices at Mytheresa are being applied to the Net-a-porter women’s luxury website and Mr Porter men’s luxury website; Yoox, an off-price e-commerce business, is being downsized, and the Outnet off-price website was sold off. Net-a-porter, Mr Porter, Yoox and the Outnet were all part of Yoox Net-a-porter, otherwise known as YNAP.
“Mytheresa had a very strong performance,” Michael Kliger, chief executive officer, told WWD. “GMV grew 11 percent in the quarter to 280 million euros at constant currency. Adjusted EBITDA margin showed very good improvement at 5.5 percent compared to last year’s quarter at 3.9 percent. The margins were better and there was more full-price selling. The U.S. is one of the strongest markets [where] Mytheresa has grown 34 percent in the last quarter.”
GMV at the Net-a-porter/Mr Porter division decreased by 5.2 percent to 243 million euros. “With the outbreak of war in Middle East, we saw not only a hefty decline in that region, but also consumer sentiment overall dipped,” Kliger said.
GMV was also impacted by “a continued detox of getting out of promotions. Last year, the quarter was quite promotion heavy,” he said.
“But as of the end of March, sentiment has improved and we are back to very strong growth. We improved the gross profit margin for Net-a-porter and Mr Porter by about 700 basis points, to 48.5 percent compared to 41.6 percent last year, so it’s way up because last year was still very promotionally intense.” EBITDA margin was 0.5 percent compared to minus 1.7 a year ago.
At Yoox, GMV declined by 8.9 percent to 131 million euros as the brand continues to focus on Europe and reduce business in the U.S. and Asia to improve profitability. “The U.S. and Asia are high cost regions. Yoox is still losing money, but there’s been significant improvement,” Kliger said, citing the third quarter’s negative EBITDA margin of 5.5 percent, a big improvement from a negative EBITDA margin of 17.3 percent a year ago.
“We expect Net-a-porter and Mr Porter, to break even this calendar year. We expect that for Yoox in calendar year 2027,” Kliger said. “We are fully on track to reach $4 billion in net sales and 7 to 9 percent EBITDA margin range in four to six years.
“We are very pleased with the quarter because it is fully aligned with our transformation plan, despite exogenous geopolitical shocks with what happened in March with the breakout of war in the Middle East that gripped our consumers, but we are fully on track to break even on Net-a-porter, Mr Porter and we have Mytheresa, which is a well-oiled machine that is the blueprint for Net-a-porter/Mr Porter,” he said. “It’s continuously producing great results, and as I always stress, one of the main KPIs [key performance indicators] I’m proud of is the net promoter score. It’s very high for Mytheresa, and it has now improved for the third quarter in a row for Net-a-porter, so we are heading absolutely in the right direction.
“We will probably continue to experience exogenous shocks. We cannot plan for that, but the resilience of the customer base, and of course, our efforts in cutting costs will get us to our targets,” he said. “The Middle East had an impact on Net-a-porter, Mr Porter and Mytheresa. It is what it is. Unfortunately, each year there’s something going on that we can’t influence and we have to deal with it. However, since the beginning of April, we can see that this dip has been digested. We see again very strong growth across the board.”
Commenting on recent performances in categories and brands across Net-a-porter, Mr Porter and Mytheresa, Kliger said, “We are very pleased with the fine jewelry segment. Net-a-porter had a very successful event just the other week with Jessica McCormack. Mytheresa just launched Messika,” a fine jewelry brand.
Resort collections from several luxury brands are showing more strength, Kliger suggested. “We’ve seen good businesses from the Zimmermanns to the Farm Rios to the Agua by Agua, just to name some,” Kliger said. “Dolce & Gabbana has always had a very strong resonance with resort. Just this last couple of weeks we have launched capsules with Pucci, Dolce & Gabbana and with Zimmermann.
“And no surprise, brands like The Row and Brunello Cucinelli continue to do quite well.”
Asked for his outlook on the rest of this year, Kliger replied, “What I know makes me optimistic. I’m just concerned about what I don’t know — the geopolitical. I follow the China summit,” last week with U.S. President Donald Trump and China President Xi Jinping. “Does that mean the tensions are decreasing or not? I follow what happens in Ukraine. Is there now potential for peace or not? I follow what is happening with Iran? Is the situation escalating or not? And then, of course, is there an interest rate increase coming or not in the U.S.? In the meantime, we just work very hard to be as resilient as possible to these shocks, but from what I know, we have seen a strong quarter, despite what happened in March. We expect a very good fourth quarter, so we are delivering the results we promised to the Street. There is really good new product out there. It’s a diverse field. There is no [single] luxury trend. For any good example, be it a Chanel or a Brunello, you still have struggling brands. Just to be in the luxury business is no guarantee of success, but you can succeed, and as a multibrand business, we of course are in a privileged position to ride the strengths of certain geographies, ride the strengths of certain categories and ride the strengths of certain brands.”
