LuxExperience B.V. Aktie

Greetings and welcome to the LuxExperience 4th Quarter and Full Fiscal Year 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. Today's call is being recorded and we have allocated one hour for prepared remarks and Q&A. [Operator Instructions] It is now my pleasure to introduce your host, Martin Beer, the Chief Financial Officer of LuxExperience. Thank you, sir. Please begin.

Thank you, Operator, and welcome everyone to the LuxExperience Investor Conference Call for the fourth quarter and full fiscal year 2026, ended June 30, 2026. With me today is our CEO, Michael Kliger. Before we begin, we would like to remind you that our discussions today will include forward-looking statements. Any comments we make about expectations, including our guidance for fiscal year 2027 and our medium-term targets are forward-looking statements and are subject to risks and uncertainties, and uncertainties described in our annual report. Many factors could cause actual results to differ materially, and we are on 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.

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 of fiscal year 2026 and the full fiscal year for LuxExperience. We are very pleased with our results as they demonstrate that our group transformation is going very well and that we are outperforming the market. At group level, we have delivered on our full fiscal year '26 guidance as we achieved a GMV growth of plus 2.9% at constant currency and delivered a positive group adjusted EBITDA margin of plus 0.4%.

These are remarkable results just 15 months after taking over a financially distressed YNAP business. Compared to fiscal year '25 and considering all capitalized tech expenses, we have boosted group adjusted EBITDA by EUR 64 million. Even more exciting, we achieved in the fourth quarter of fiscal year '26 a GMV growth of plus 7.9% at constant currency and a group adjusted EBITDA margin of plus 2.1%. In the fourth quarter, we had positive top-line growth in all of our three reporting segments.

At Mytheresa, we have set again the gold standard in the fourth quarter in terms of growth and profitability. The success is based on outstanding customer economics and a resilient, profitable business model. This is exactly the formula that we now apply to Net-a-Porter and Mr. Porter. The fourth quarter, Net-a-Porter and Mr. Porter combined, now also delivered positive growth and profitability. It dovetails our strategy to focus on the healthy core of the business and make the business model leaner, now showing clear results. In the fourth quarter, YOOX achieved positive top-line growth and losses were cut almost in half compared to Q4 of fiscal year '25.

With the tremendous progress made in the past 12 months and the strong business momentum in Q4 of fiscal year '26, we are clearly on track to achieve our medium-term targets of group net sales of EUR 4 billion and an adjusted EBITDA margin of 7% to 9%. For full fiscal year '27, we expect accelerated top-line growth and further increased group-adjusted EBITDA margin. Strong current trading reinforces our continued positive business momentum. Martin will later clarify our guidance for fiscal year 2027. Let me now comment in more detail on the performance of the Mytheresa business. We again out-performed the industry with double-digit top-line growth and strong profitability.

By focusing on wardrobe building, big spending customers, Mytheresa possesses a very resilient business model driven by superior customer economics. A clear strategic focus and the excellent execution allowed Mytheresa to become a EUR 1 billion business in fiscal year '26, marking a significant milestone in the company's success story. In Q4 fiscal year 2026, Mytheresa grew its net sales by plus 10.2% on constant currency basis compared to Q4 fiscal year 2025. And for the full fiscal year 2026 by 11.5% on constant currency basis compared to full fiscal year 2025.

In the U.S., the Mytheresa business grew net sales by plus 39.3% on constant currency basis in Q4 fiscal year '26 compared to Q4 fiscal year '25. For the full fiscal year, the U.S. accounted for 23.8% of net sales in Q4 fiscal year '26 of Mytheresa's total business. Mytheresa's strengths and resilience are driven by its superior customer economics. In the fourth quarter of fiscal year '26, the number of top customers at Mytheresa grew by plus 18% compared to the prior year period. Furthermore, the average spend per top customer in terms of GMV grew by plus 4.8% in Q4 fiscal year '26 versus Q4 fiscal year '25 and plus 4.3% for the full fiscal year '26.

The average order value last 12 months for Mytheresa increased by a remarkable plus 13.1% to a record high of EUR 875 in Q4 fiscal year '26. The success of the focus on selling full price high-end luxury products to top customers is evident by the fact that top customers accounted for 4.8% of all customers in numbers, but for 48.4% in terms of total GMV in fiscal year '26. The continued focus on selling full price also drove again the gross profit margin increase of plus 150 basis points in Q4 fiscal year '26 compared to Q4 fiscal year '25. Lastly, Mytheresa's excellent customer service proposition is highlighted by our internal Net Promoter Score (NPS) of 83.6% in Q4 fiscal year '26. All these figures demonstrate the fundamental strengths and continued success of the Mytheresa business based on superior customer economics.

The success with big spending, wardrobe building customers also makes Mytheresa a highly desired partner for the world's most prestigious luxury brands. In the fourth quarter of fiscal year '26, Mytheresa launched 11 exclusive capsule collections and featured four exclusive pre-launches or exclusive styles campaigns. In collaboration with luxury brands such as Dolce & Gabbana, Pucci, Prada, Bottega Veneta, and Brioni, amongst many others. We're also very proud to have recently started digital partnerships with two new true luxury brands, Fendi and Piaget, which are now available on Mytheresa. Please see our investor presentation for more details on brand collaborations.

In the fourth quarter of 2026, Mytheresa also hosted more than 14 global top customer events and six exclusive money-can't-buy events with luxury brands, including Zimmermann, Dolce & Gabbana, and Brioni, across Europe, the U.S., and Asia. Creating a strong sense of community for its top customers. Mytheresa also returned with a second edition of Maison Mytheresa, creating a successful yacht experience along the French Riviera, hosting 29 events in 12 days, which hosted 790 customers on the boat. Please see our investor presentation for more details on these unique money can buy experiences.

To sum it up, Mytheresa reaffirmed its clear leadership position in the digital multi-brand luxury landscape in fiscal year 2026. Mytheresa sets the standard by delivering profitable growth based on its focus on big spending top customers. It does also serves as the internal blueprint for the successful turnaround of Net-a-Porter and Mr. Porter. Martin will later show how the strong top line results of Mytheresa translated into excellent bottom line results. Let me now comment on the luxury segment comprised of Net-a-Porter and Mr. Porter. We are in high gear re-establishing both as leading digital multi-brand destinations for luxury fashion shoppers seeking editorial inspiration and brand discovery.

By applying the secret sauce of LuxExperience, namely an obsessive focus on best customers, full price selling, and cost discipline, we are successfully rebuilding strengths and resilience in their business models. For the first time since the acquisition, Net-a-Porter and Mr. Porter combined achieved top-line growth and a positive bottom line in the last quarter of fiscal year '26. Net sales increased by plus 5.6% on constant currency basis in Q4 fiscal year '26 versus Q4 fiscal year '25, and for the full fiscal year 2026 by plus 0.5% compared to full fiscal year 2025 on Net-a-Porter and Mr. Porter combined. In the U.S., net sales increased by plus 15.1% on a constant currency basis in Q4 fiscal year '26 compared to Q4 fiscal year '25. For the full fiscal year, the U.S. accounted for 49.6% of net sales of the total business of both stores combined.

Improved and strong customer economics are also key for the success of Net-a-Porter and Mr. Porter. In the fourth quarter of fiscal year '26, after an initial focus on the quality of the customer base in the first quarters, we increased again the number of top customers by plus 3.2% compared to Q3 fiscal year '26. Moreover, the average spend in terms of GMV per top customer increased by plus 9.4% in Q4 fiscal year '26 versus Q4 fiscal year '25, and plus 5.3% for the full fiscal year '26. The average order value last 12 months increased by plus 9.1% to EUR 885 per year, Net-a-Porter and Mr. Porter combined in Q4, fiscal year '26.

As a consequence of the renewed focus on the best customers at Net-a-Porter and Mr. Porter, their top customers accounted for 4.3% of all customers and numbers, but for 49.1% in terms of total GMV in fiscal year '26. A clear focus on full price selling to top customers instead of promotional discounting drove also a gross profit margin increase of plus 170 basis points in full fiscal year '26 compared to fiscal year '25. Customer satisfaction Net-a-Porter measured by our internal NPS remained at 59.7% in Q4 due to shipping backlogs in the warehouses, but for the full fiscal year '26, the NPS increased by plus 6.7 percentage points compared to fiscal year '25. All these KPIs confirm a significantly improved quality of the customer economics and business models of Net-a-Porter and Mr. Porter.

In line with their position as the leading digital multi-brand destinations for luxury fashion shoppers seeking editorial inspiration and brand discovery, Net-a-Porter and Mr. Porter launched, in the fourth quarter of fiscal year '26, 36 editorial campaigns for exclusive brand and product launches, with brands such as Chloé, Khaite, Carolina Herrera, Tom Ford, Brunello Cucinelli, and Celine amongst others. Net-a-Porter also hosted 11 unique experiences for their EIPs, the so-called extremely important people, with brand partners such as Khaite, Chloé, Gucci, and Schiaparelli in the U.S. and Europe in Q4. Net-a-Porter also continued to boost its editorial strengths with exclusive Porter cover stories that generated a reach of 194 million in Q4 fiscal year '26. Please see our investment presentation for more details on the unique editorial content and exclusive activations of Net-a-Porter.

Mr. Porter hosted six unique EIP experiences with brand partners including Zegna and Ralph Lauren in the U.S. and Italy. Mr. Porter also continued to strengthen its editorial voice with its journal, pushing brands, advice, and style stories. In total, the top journal stories reached over 13 million views. Please see our investor presentation for more details on Mr. Porter's unique editorial content and exclusive activations. To sum it up, Net-a-Porter and Mr. Porter are re-establishing themselves as leading digital multi-brand destinations for luxury fashion shoppers seeking editorial inspiration and brand discovery. Positive top-line growth, improved custom economics and positive bottom-line results in the fourth quarter of fiscal year '26 underline the success of the ongoing business transformation. Martin will later provide more details on the bottom line results of the luxury segment comprised of Net-a-Porter and Mr. Porter.

Lastly, let me comment on YOOX business performance. Our strategic focus on the core European markets and a leaner operating model in line with the lower margin and lower average order value nature of the off-price business is already showing clear results. Positive top line growth in the fourth quarter and adjusted EBITDA losses almost half speak to the success of the transformation thus far. This business momentum was further enhanced by YOOX's brand activations throughout the quarter to reinforce its position as the leading destination for long-lasting luxury fashion, built around individual creativity, culture and community. In Q4 fiscal year '26, net sales for YOOX increased by plus 6.6% on constant currency basis versus Q4 fiscal year '25. And for the full fiscal year '26, net sales contracted by minus 5.8% compared to full fiscal year 2025.

The net sales growth in Q4 fiscal year '26, net sales contracted by minus 5.8% compared to full fiscal year 2025. Q4 was also driven by extraordinary inventory clearance, but most important was that in Europe, excluding the U.K., YOOX increased net sales by plus 22.7% compared to Q4 fiscal year '25. For the full fiscal year '26, net sales in Europe, excluding the U.K., grew by plus 10.9% and accounted for 61.3% of net sales of the total YOOX business. Strong momentum in the European markets validates the strategy to focus on a healthy and more profitable core of the business.

Besides the overall net sales increase for YOOX in Q4 fiscal year '26, the average spend per top spending customer in terms of GMV grew by plus 12.3%. The average order value last 12 months decreased by minus 3.5% to EUR 243 in Q4 fiscal year '26. However, this was also driven by the reduced focus on the high AOV overseas markets. In Europe, excluding the U.K., the AOV last 12 months increased by plus 2.1% in Q4 FY'26. The gross profit margin decreased in Q4 fiscal year '26 driven by the mentioned destocking push. For the full fiscal year '26, the gross profit margin grew by plus 120 basis points to 38.5%, driven by a much more demand driven pricing system increasing the share of first price sales.

YOOX customer satisfaction measured by our internal NPS reached 49.1% in Q4 fiscal year '26, increasing by 1520 basis points compared to Q4 fiscal year '25, showcasing also the effect of the LuxExperience secret sauce on YOOX customer service operations. All the above KPIs demonstrate that the strategic focus on the healthy core is resulting in much improved customer economics. In the fourth quarter of fiscal year '26, YOOX leveraged its 26th anniversary to drive brand engagement, consideration and new customer acquisitions through flagship community events in Milan and Forte dei Marmi. The corresponding social media campaigns generated over 30 million estimated reach, almost 550,000 campaign page visits and nearly 1,000 new customer registrations.

These initiatives successfully leveraged a brand milestone into measurable commercial and brand performance, reinforcing YOOX's evolution into a culturally relevant lifestyle brand. Please see our investor presentation for more details these events and activations. To sum it up, the focus on a healthy core for YOOX and a lean operating model as part of our transformation plan is already showing great results. We are successfully rebuilding the position of YOOX as the leading destination for long-lasting luxury fashion built around individual creativity, culture and community. Martin will speak shortly to the tremendous improvements we made to the bottom line of YOOX in fiscal year '26. And now, after having reviewed the very strong commercial results and business improvements across all three reporting segments, I hand over to Martin to discuss the financial results in more detail.

Thank you, Michael. In this call, I will focus the top line development on net sales and constant currency. But before I will provide you with more details on LuxExperience Group and individual segment performance, let me summarize the financial highlights looking back into the full fiscal year '26 and fiscal Q4 ended June 30, 2026.

We have delivered on our full year guidance on top and bottom line. With one year into our transformation, we're already breaking even on adjusted EBITDA for the full year. We have no bank debt in our balance sheet, and EUR 442 million cash and cash investments, better than expected. In fiscal year '26, we achieved significant cost savings in SG&A of around EUR 55 million, or minus 9.9%. The last three months of the fiscal year, running from April to June, stood as an inflection point in our overall transformation. Net sales in the quarter grew by plus 7.6% at LuxExperience, the highest in any quarter of this fiscal year.

In fiscal Q4, we decreased our SG&A cost ratio by 400 basis points, from 21.6% to 17.6% versus prior year Q4. Adjusted EBITDA margin for LuxExperience stood at a positive plus 2.1%, the third consecutive quarter with positive and increasing adjusted EBITDA. These strong LuxExperience numbers are based on impressive performance at all segments. Mytheresa again with double digit net sales growth in the quarter at plus 10.2% and further strong increase of adjusted EBITDA by plus 10.9% in the quarter compared to previous year.

An inflection point at Net-a-Porter Group reporting plus 5.6% net sales growth for the first time and also achieving positive adjusted EBITDA profitability in the quarter. YOOX as well, and for the first time, re-embarking on net sales growth with plus 6.6% in the quarter. In addition, impressive profitability improvement at YOOX with a 920 basis points increase in adjusted EBITDA versus Q4 of fiscal year '25. SG&A expenses at YOOX decreased by minus 20% versus the previous year quarter. And now, as usual, I will first review in more detail, LuxExperience Performance at total segments view, and then walk you through our three business segments, Luxury Mytheresa, Luxury Net-a-Porter, and Mr. Porter, and the off-price business of YOOX.

As mentioned before in this call, I will focus top line development on net sales in constant currency. GMV numbers follow a similar pattern and are as always fully disclosed in our press release and investor presentation and annual report. In addition, all numbers in previous year include capitalized IT expenses for a true like-for-like comparison. We discontinued this practice for the acquisition. Unless otherwise stated, all numbers refer to EUR. LuxExperience grew net sales by plus 7.6% in fiscal Q4. This was the strongest quarter year over year growth in the fiscal year.

In fiscal Q4, we achieved a positive adjusted EBITDA margin of plus 2.1%, our third consecutive quarter with positive adjusted EBITDA profitability. The success is also visible in the strong sequential adjusted EBITDA margin improvement, looking at the six-month period to reduce the seasonality effect. Fiscal H2 adjusted EBITDA margin improved by 220 basis points compared to fiscal H1. For the full fiscal year '26 and in line with our expectations, our adjusted EBITDA margin returned to positive territory, improving 260 basis points to 0.4% compared to the prior year. And please remember, this turnaround comes after years of YNAP with a persistent lack of profitability, with a peak of a negative minus EUR 175 million EBITDA in their fiscal year '24.

As you know, one key driver of improved profitability is our focus on SG&A cost savings. In Q4, LuxExperience's SG&A cost ratio improved significantly by 400 basis points to 17.6% compared to 21.6% in the prior year quarter. If you look in the course of fiscal year '26, and on a quarter by quarter basis, the SG&A cost ratio dropped in total by 430 basis points from 21.9% in Q1 to 19.1% in Q2, further improving to 18.3% in Q3 to now 17.6% in Q4 for fiscal year '26. In the full fiscal year '26, SG&A expenses went down by EUR 55 million or minus 9.9% of the cost base. In the fourth quarter of fiscal year, we generated a positive operating cash flow of plus EUR 9 million.

Operating cash burn in the full fiscal year was at minus EUR 108 million, significantly better than the minus EUR 120 million maximum operating cash burn communicated previously. As mentioned before, the group ended the fiscal year with a continued strong balance sheet and no bank debt, holding cash and cash investments of EUR 442 million. Noteworthy is that we have Citibank join our existing strategic banking partners, Unicredit, J.P. Morgan, and Commerzbank for our long-term value creation setup. With that, our banking RCF also increased by EUR 25 million to now EUR 125 million.

Despite strong top line growth, inventory on group level only increased by plus 3.7% compared to the end of the last fiscal year. We are pleased to share that on September 3rd, management received the authorization for a share repurchase program of our ADRs, which may be executed through an accelerated share repurchase program and at management's discretion based on market conditions. We have not implemented the repurchase program as of now, and there is no guarantee that we may do so. Let me now review the performance of our Mytheresa business. We've seen continued strong net sales growth on all comps.

During the fourth quarter of fiscal year '26, net sales grew by plus 10.2% to EUR 269.2 million compared to the prior year period. For the full year, net sales grew by plus 11.5% to EUR 994.3 million. We continue to significantly take market share. In Q4, Mytheresa's gross profit margin increased by 150 basis points to 49.7% compared to 48.3% in Q4 fiscal year '25. For the full fiscal year, Mytheresa's gross profit margin increased by 150 basis points to 48.5%. We were able to again significantly improve the gross profit margin driven by our successful focus on full price.

Delivering a continuous gross profit margin increase while at the same time taking market share with double digit top line growth is a testament to the strength of our positioning. Subsequently, the adjusted EBITDA margin at Mytheresa expanded 20 basis points during the quarter to 6.6%, as compared to 6.5% in the prior year period. For the full fiscal year, the adjusted EBITDA margin significantly improved by 140 basis points, from 4.9% to 6.3%. On absolute terms, adjusted EBITDA grew by plus 39.8% to record EUR 62.3 million in the full fiscal year.

At Mytheresa, IEPR territory funds in Q4 had an insignificant effect of 50 basis points in the adjusted EBITDA margin. In sum, and looking at the Mytheresa business model, we have successfully coped with various tariff situations in the past quarters and years and expect to do so in the future. From fiscal year '24 to fiscal year '26, we were able to increase the adjusted EBITDA margin by 320 basis points. We are continuing our effective inventory management with inventory levels at Mytheresa up only plus 3.9% despite continuous double-digit top-line growth. In fiscal year '26, Mytheresa had a positive operating cash flow of around plus EUR 20 million.

Being able to achieve strong operating cash flow, even with double-digit top-line growth, highlights the reliability and resilience of our business model. Let me now comment on the Luxury Net-a-Porter and Mr. Porter segment in more detail. In the fourth quarter Net-a-Porter and Mr. Porter delivered a clear turnaround across both top and bottom line, driven by strong execution of our new leadership teams and the success of our transformation plan. During the fourth quarter of fiscal year '26, net sales increased by plus 5.6% to EUR 273.9 million compared to prior year periods.

For the full fiscal year, net sales grew by 0.5% to EUR 994.8 million. This stands as an inflection point as the NMD segment had experienced continued strong revenue decline in preceding years and in preceding quarters. As we accepted, revenue decline was stronger focus on higher quality customer cohorts. It is reassuring to now report top-line growth on the basis of a much stronger customer file. In addition, our commitment to full price selling drove a strong gross profit margin increase of 160 basis points to 48.3% in the second half of fiscal year '26 compared to the first half.

While the gross profit margin decline in the quarter was driven by previous year comps. For the full fiscal year '26, the gross profit margin increased as well by 170 basis points from 45.9% in fiscal year '25 to 47.5% in fiscal year '26. Lowering our cost base remains the central pillar of our transformation, and our SG&A cost improvements showed acceleration throughout fiscal year '26. For Q4, our SG&A cost ratio improved 500 basis points year over year from 24.5% to 19.5%. The SG&A cost ratio in the second half of fiscal year '26 improved by 350 basis points, versus the first half of the fiscal year.

In absolute terms, already in the first year of our transformation, at the Net-a-Porter Mr. Porter segment, we achieved EUR 29.8 million SG&A cost savings versus fiscal year '25 or minus 11% of the cost base. In fiscal year Q4, the 19.5% cost ratio at Net-a-Porter Mr. Porter was still 700 basis points higher than at Mytheresa, and thus still leaves significant opportunity for further cost savings, especially in tech and operations. On the bottom line, we're very proud to report that this is our first quarter in fiscal year '26, achieving positive adjusted EBITDA at Net-a-Porter Mr. Porter, coming in at a 2.7% margin.

This milestone marks a significant step forward, representing an expansion of 230 basis points compared to Q4 of last year. With this, H2 of fiscal year '26 was also already positive on adjusted EBITDA level at a plus 1.2% margin versus minus 2.5% in fiscal H1. At Net-a-Porter Mr. Porter, IEPA tariff refunds had a positive effect of 250 basis points in the adjusted EBITDA margin in the quarter. The effect is stronger than at Mytheresa, given the operational setup of Net-a-Porter Mr. Porter, with a warehouse in the U.S. and a higher U.S. revenue share. Even if you take out the IEPA tariff refund effect, fiscal Q4 would still be positive at Net-a-Porter Mr. Porter. The Net-a-Porter operational setup is fully capable of dealing with various tariff situations expected to continue to do so.

Inventory levels at Net-a-Porter Mr. Porter are slightly up plus 5.5% to previous year and going forward we will continue to enable top-line growth at Net-a-Porter Mr. Porter with adequate working capital. Before reviewing YOOX financial performance, I want to note that following the successful sale of the outlet at the end of April, we also concluded our transition services agreement with the buyer at the end of July 2026. Concluding this final step in the divestment allows us to fully concentrate our resources on driving our core off-price business at YOOX. In line with our transformation plan, at YOOX we're focusing on the healthy core of the business, deprioritizing overseas markets with high cost to serve, and implementing a lean operating model supported by a simplified off-price tech environment.

As Michael mentioned, and similar to Net-a-Porter Mr. Porter, we achieved top-line growth at YOOX already in the fourth quarter. Net sales for the quarter came in at EUR 110.5 million, representing growth of plus 6.6%. A key focus of our transformation is on implementing a highly efficient operational structure tailored to the lower AOV and slightly lower gross margin nature of the off-price business. Our SG&A cost ratio in H2 of fiscal year '26 compared to H2 of the previous year improved significantly by 560 basis points from 29.4% to 23.8%. This equals to EUR 17.5 million absolute cost savings, or minus 23.3% of the cost base.

The acceleration is also visible throughout fiscal year '26. The H1 SG&A cost ratio was at 28.1%, 430 basis points higher than an H2 of fiscal year '26 at 23.8%. On the back of these SG&A cost savings, adjusted EBITDA improved significantly in fiscal year '26. The Q4 adjusted EBITDA margin in fiscal year '26 was at minus 10.5% versus minus 19.8% in the previous year. This represents a 920 basis points margin improvement. The acceleration during fiscal year '26 is also visible in comparing the minus 7.8% margin in fiscal year H2 with minus 10.9% in fiscal year H1, a 310 basis points margin improvement from H1 to H2 of fiscal year '26.

Inventory levels at YOOX were stable at plus 0.3% versus previous year. Let's look ahead to fiscal year '27, which has already started in July '26. We are very proud of the significant progress achieved in fiscal year '26, which will have a full year effect in fiscal year '27 on top to additional measures already defined. Supported by our transformation activities in fiscal year '26, net sales showed an increase of plus 3.2%. With the top line success of Q4 and our visibility into Q1 of fiscal year '27, we expect to grow mid to high single digit at group level for fiscal year '27 in total.

On bottom line, in fiscal year '26, we achieved a break even for the full year and a plus 1.7% adjusted EBITDA margin in H2 of fiscal year '26. For fiscal year '27, we expect the adjusted EBITDA margin at around 2% to 3%. To give you some broader commercial context on the business, I would also like to provide indications for our three segments. At mid-30s for fiscal '27 on top line. We expect continued high single digit to low double digit growth and adjusted EBITDA profitability slightly better than in full fiscal year '26. At Net-a-Porter Mr. Porter, continued growth, top line, mid single digit, and around 100 to 200 basis points adjusted EBITDA margin improvement compared to full fiscal year '26, not compared to Q4. At YOOX, we expect mid single digit top line growth, with the adjusted EBITDA margin remaining negative in the mid single digit range. We expect to reach adjusted EBITDA break-even at YOOX in FY'28.

Given the seasonality of our business, the strong fiscal Q4 performance for the group should not be expected throughout fiscal year '27. Fiscal Q1 and Q3 usually have a lower performance and Fiscal Q2 and Q4 have a stronger performance than the average. For the current fiscal Q1, which runs from July to September '26, we are very pleased with the performance. Therefore, on group level, we expect high single-digit net sales growth and a just slightly negative adjusted EBITDA margin, which is a strong improvement to prior years adjusted EBITDA margin. We expect a significantly improved Q1 performance. Beyond fiscal year '27, we expect, on top line, a 10% to 15% CAGR in the next years.

On bottom line, and in the years after fiscal year '27, we expect an annual 150 to 250 basis points increase then adjusted EBITDA profitability until we reach 7% to 9% adjusted EBITDA margin medium term at EUR 4 billion net sales. We have a strong cash position today and anticipate the remaining transformation in the next two years to absorb and not only another EUR 150 to EUR 250 million total cash burn. We therefore expect to have a significant cash buffer during and after the transformation of a minimum of around EUR 200 to EUR 300 million, without adding any cash utilization of our RCFs. On September 3, management received the authorization for share repurchase program of our ADRs, which may be executed through accelerated share repurchases and at management's discretion based on market conditions. We have not implemented the repurchase program as of now and there's no guarantee that we may do so.

In summary, we are at an inflection point for LuxExperience. After the first year of our transformation, we are already breaking even on adjusted EBITDA. All segments are set for further growth in fiscal year '27 to take significant market share. In total a 2% to 3% adjusted EBITDA margin. We expect to grow even stronger with further improving industry sentiment. The turnaround of YNAP is bearing fruit with significant sequential and accelerating SG&A cost savings and adjusted EBITDA improvements. We have a significant cash buffer to weather any further macro uncertainties. We are committed to continue our track record of diligently executing our plans and delivering what we target. And with this, I hand over to Michael for his concluding remarks.

Thank you, Martin. LuxExperience is the one and only digital destination for luxury enthusiasts worldwide. The strength of our businesses is based on resilient business models and superior customer economics. The results of Q4 fiscal '26 underline this and show the tremendous progress we have achieved in our transformation plan in just the last 12 months.

We have delivered on our fiscal year guidance. Mytheresa again performed best in class in the sector. Net-a-Porter and Mr. Porter achieved a clear turnaround. And YOOX is in high gear to achieve the same. We have proven that at LuxExperience we possess the secret sauce in digital luxury. Just heard from Martin for fiscal year '27. We now expect a further acceleration of top line growth and even healthier profitability.

As a group, we are well positioned to benefit from the sustained growth of digital luxury and the improvements in the global luxury sector. We expect to continue to generate enormous value for our customers, brand partners, and shareholders. And with that, I ask the operator to open the line for your questions.

We will now begin the question and answer session. [Operator Instructions] Your first question comes from the line of Oliver Chen with TD Cowen. Oliver, your line is open. Please go ahead.

Especially in the U.S., very impressive. Regarding the guidance and the modeling, what should we know about gross margin relative to SG&A, and how are you seeing merchandise margins evolving for next year in terms of promotional levels and what may happen for gross margin? Michael, it would also be helpful to brief us a bit on what you're seeing regionally between all the momentum and share gains in the U.S. relative to Europe and any distinctions that you'd want to make there because there's many different crosswinds happening globally. Finally, on ERP platform migration, where are you with that? You've made a lot of progress, but I would love any milestones we should pay attention to. The YOOX positioning seems quite compelling, but as we look ahead, it sounds like you're looking for the negative mid-single-digit range still, but would love puts and takes on profitability there, given the repositioning underway. Thanks a lot.

Okay, let me take on the geography and ERP questions, Oliver, and then Martin takes on the margin and EBITDA profitability. So geography wise, I mean, as stated, the U.S. is at the moment the fastest growing digital luxury market. The growth rates we deliver for us clearly indicate we are taking market share because this is even better than what we see and hear from others in the U.S. market. The U.S. consumer is really willing to spend, particularly at the very high end that we focus on. Europe continues to be a good market, but Europe is polarized, regionally but also probably more polarized by the different segments we see real pockets of strengths where wealth has agglomerated, be it Italy, be it Spain, Portugal, Greece, there's a lot of influx of new money.

That Europe is also a great success case for YOOX is to us no surprise, because at the same time we see in some markets really sluggish demand for luxury products, be it France, Germany, and I mean domestic, not tourism demand. But here the polarization is of course also very, helping us on the other end of the portfolio spectrum with YOOX success and Middle East, the demand has come back. Arabic Peninsula, the demand has come back. But of course, there's still weekly, monthly swings to the positive or to the negative. And also a lot of the demand of our customers in the last month happened abroad. So we will see how much the domestic demand of those clients that we continue to serve 12 months around will pick up as we move now back to the region, September, October, November. And lastly, China, greater China, we believed at the beginning of the year, we will see the bottom and it will rapidly improve. The summer was disappointing.

While Southeast Asia still offers opportunities, both for Net-a-Porter, Mr. Porter, for Mytheresa, the U.S. is the focus. That's where our marketing spend pays off nicely for. For YOOX, it's really the core market Europe, 23% growth in the last quarter. Fantastic for that business. So we're very pleased with that. On the ERP side, we make continuous progress. We will have a big replacement of many different elements. The HRS system has already been introduced globally in May. The ERP system for Net-a-Porter, Mr. Porter, has been upgraded to BC Central and is live. So we've done the switch. ERP upgrades can be quite significant.

Disturbing to business, we have done so with very little disturbance to the business. So we are running now in BC Central both Mytheresa and Mr. Porter. There will be another big system upgrade in autumn on all the buying and merchandising business operations in Net-a-Porter and Mr. Porter. And the webshop migration continues to progress very well. We had the very first demo sessions on the app on the website. So we are fully in line if not even slightly ahead.

On the systems upgrades. Martin? Yes, happy to take the margin questions.

All right.

Exactly. As you say, the profitability improvement is coming from top line, but also on a cost ratio perspective or income ratio on gross profit margin, where we expect continuous further improvement, and especially on the SG&A cost ratio, especially at Net-a-Porter Mr. Porter and YOOX, there are significant improvements. And also the top line will obviously help also on the cost ratio to get that closer to the Mytheresa benchmark level. Especially, I mean, we have in the full fiscal year '26 reported top line decline minus 8.4% And we guide fiscal year '27 to mid single digit decline driven by what Michael said, we focus on the European geography with continuous focus on the healthy core customer because we are really focusing on, you know, turning units around and increasing significantly, increasing profitability. For fiscal year '26, we report that minus 9.4% adjusted EBITDA margin. And for fiscal year '27 now with the continuous efforts that we're doing on especially on SG&A, then guide to a mid single digit, negative profitability. So again, almost halving the, the losses there. And also I had earlier communicated that for fiscal year '28, we clearly target and expect the turnaround at YOOX on adjusted EBITDA level.

Thank you. Best regards.

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

So I wanted to start off with the guidance, um, in terms of the mid to high single digit sales growth. Sounds like you guided high single for Q1, so it's off to a stronger start. How should we think about the likelihood that for the full year you reach high single versus slowing down to mid single, just wondering kind of how you're thinking about the back half. Are you being prudent or other puts and takes to think about why the business might flow in Q2 through Q4.

Blake, thanks for the question. The good thing is, as we report now and the Q1 is almost finished, we obviously have clear visibility in Q1 and are very happy with the overall performance. Fiscal year '26 was strong. We enter fiscal year '27 with a strong Q1, which is great. And obviously, as you know, there are multiple factors, not only on seasonality, how Q2 and Q3 are different, Q4 will play out our strong quarters, fiscal Q2 and Q4, and how fiscal Q3 will turn out as we had a very strong fiscal Q3 in the last, this is clearly too early to tell, but to guide the whole for the whole group to high single digits, I think is a huge progress that we see, that we saw in Q4, and then now guide for the full fiscal year. And obviously, that implies, and we also gave a bit of a color on the second performance, that all three segments have strong top line growth. Mytheresa, Net-a-Porter, Mr. Porter, and YOOX. So continued commercial success, and we're really happy and therefore have a strong guidance for fiscal year '27.

Thank you. And as a follow-up on the Mytheresa, AOV growth remains double digits. Seems like that's really driving the business with shipments closer to flat. Can you talk about the drivers of that AOV growth? Anything in terms of like for like price increase, category mix, units per transaction, anything about that, and sustainability of AOV, into 2027 that double digit growth. And then if I could also ask on YOOX, Q4 was really strong led by Europe as you called out. Curious if there's anything any more color you can provide on on the strength there in that region in Q4.

Sure, happy to jump in on this. So clearly, high AOV is really helping on unit economics, so we're very happy that we have achieved now EUR 875 at Mytheresa and we already have EUR 885 at Net-a-Porter, Mr. Porter. Drivers for this are the growing importance of the top customers. Top customers per definition and per reality always have a higher basket value. They shop higher item value items. So it's a mixed effect that shows for the company. If the share of the business with top customer goes up to almost 50%, the EUR 1,200, EUR 1,300 AUV baskets of those customers take a bigger weight without significantly changing the items.

We do see also another big influence is the increasing expansion of fine jewelry. We have Bulgari on Mytheresa, we launched Piaget on Mytheresa, we have Cartier, Vacheron. So we have a really good representation and see increasing appetite for also fine jewelry in the range of 20 to EUR 80,000 per piece. So that also drives but fully pays into the focus on top customers. On the success in Europe, there is a polarization and there is, of course, let's call it for better words, middle class luxury spend customer who think twice now how much they spend. There is inflationary pressure. There's energy prices, so we believe having jewels in the portfolio that offers luxury fashion at deep discounts because they're off season because they're one-year-old items but for people that want to have great brands at those prices. It's a great offer and the focus on Europe is engineered.

We have an AOV of EUR 250 to EUR 243, I believe, in YOOX. And so it makes much more sense to incur shipping costs for Europe, for the continent than trying to compete at this stage in the U.S. or in Japan for big business. That may change in the future but at the moment we focus on the healthy core.

That's very helpful. Thanks so much. Your next question comes from the line of Anna Glaessgen with B. Riley. Anna, your line is open. Please go ahead.

Hi, good morning. Thanks for taking my question.

A few on Net-a-Porter and Mr. Porter. First, great to see the acceleration ex-U.S. in the U.S. from 3.7 to 15.1. if you can unpack if there was anything one time in the quarter that we should be aware of. And then secondly, in the past, you've discussed bringing up the marketing spend to be a parity with the Mytheresa business. Now that you've invested more in marketing, are you satisfied with this level of marketing spend? Thanks.

There's no one-time effect that drove the really nice top line for Net-a-Porter, Mr. Porter in the U.S. It's just our marketing gets better, our curation gets better, we upgraded or completely changed our customer messaging backbone, ripped out the old infrastructure, put a new infrastructure. Our storytelling has completely been redone by the teams since January and all of that resonates and then you took to put on top of it a lot of activations, of course, also focused on the U.S. customers, focused on the U.S. markets. That's the formula and it's not defining the formula, it's executing that makes the difference and therefore our guidance that Martin laid out is completely based on continuing exactly on that trajectory so that the last quarter was not a one time off. We will see continued success, Net-a-Porter, almost 50% of their business is based in the U.S. So that has been and will be a strong hold and we just kicked off New York Fashion Week with big campaigns, big events, also by Net-a-Porter in New York and thus we're this is not a one-off, this is a continuation and marketing expense. We are very happy with what we see.

It's a dual effort. The marketing cost of Net-a-Porter have a higher share of editorial content. We launched a Porter Magazine cover with Cindy Crawford. On that basis, we had an event last week with Cindy and her friends in New York. We launched a Porter Magazine with Serena Williams on it, and she also attended the event. That's important part of it but then also digital marketing we completely exchange the tools and more importantly algorithms and get better and better now. I mean something we have done since 2017 on Mytheresa. So all of that pays off but we have just started. There's so much more we can do and it works. So we are very happy with the spending level and if we see.

More opportunity, we will actually spend more. Great. Thank you. We have time for one more question. Our final question will be from the line of [ Cedric Norrist ] with Morgan Stanley. Oh. Hold, please. All right, this concludes today's call. Thank you for attending. You may now disconnect.

This live transcript is auto-generated without human intervention or review.

I don't know if you can hear us. Yes?

Okay. Well, welcome, everyone, to the Global Consumer and Retail Conference. This is the 33rd edition. It's the first one for me. I've only been at Goldman Sachs for 1.5 months. I have been involved in luxury for the better part of the last 30 years, but I don't have coverage yet. Eventually, hopefully, I'll be covering European luxury out of London.

I'm very happy today to welcome Martin Beer, who is the CFO of LuxExperience, formerly known as Mytheresa. But obviously, the group has expanded 1.5 years ago to take over other assets, selling luxury online and becoming according to some, the sort of last man standing in that approach. Just to start off, Martin, and thanks a lot for making it here.

I just was wondering if you could give us maybe your vision about where we are at in luxury today because I think from what I've started picking up, starting to speak to the companies that eventually I'll be picking up. I understand that the U.S. continues to compound quite nicely. South Korea is very strong. The rest of the markets seem relatively weak.

So that's from a, I guess, a regional point of view. If you look at brands, seemingly Chanel is doing very well. Seemingly a lot of the jewelers, global jewelers, the likes of Tiffany, Cartier, et cetera, are doing very well, but the rest of the brands are relatively weak. I'm wondering what you're seeing?

How -- what is your vision of the current state of luxury and maybe recent changes in consumer behavior? What are you experiencing at LuxExperience?

Thanks, Aaron. Good to be here, to see you and very big question. But obviously, it's the key question that everybody is looking at what is the state of the luxury consumer and what are the nuances? And maybe you can answer that from 2 angles.

First angle is more the broader angle, the digital luxury. I mean we all have to bear in mind that the luxury market, EUR 400 billion, the digital part is the part that is growing. And if you take the Bain and Altagamma or whoever, the digital part is growing 8% to 10% CAGR per year. So as a digital player, we operate in a market that has a lot of tailwinds from the market, operating in a growing market.

And that obviously is also -- you have to bear that in mind. That digital luxury is -- always has been the best growth opportunity on a more general level, especially if you look at brands that you also mentioned that rely on physical stores, be it in China or Middle East and obviously have to face certain acts.

And the second topic is the second angle is the top customer, the top customer. So everybody is trying to grasp the K-shaped situation where brands succeed more that cater more to the higher end of the top customers and brands more lower have had less success. And the -- this top customer is really very demanding and it requires innovation.

It's about emotions. It's about curation. And with that defines fashion and luxury as part of the lifestyle and therefore, is a much more resilient customer. And we see that also in our numbers. I mean, in the last quarters, you've seen that we, at Mytheresa, double-digit growth in the last quarters.

And we -- because we've always focused on that top customer, that high-end customer. And if you look at more bigger brands, they are, to a certain degree, more backselling companies and therefore, have a more -- a much higher share of aspirational customers per definition. And with that top customer focus that enables us to continue to grow and to have a very resilient business model. As you mentioned in the last quarters, number of top customers increased double digit, very strong. Revenue per top customer increased. All the KPIs, AOV or with that top customer notion, higher full price share.

And therefore, that is also kind of the logic or that results in why we have such a good and strong business model on the top customer side. So for us, it's a very stable, resilient top customer cohort and for us as a multi-brand player and that top customer is per definition, a multi-brand customer because you cannot just buy for 2 years now only Gucci. You usually don't do this. And that caters and that helps us as a multi-brand luxury player, and we are the #1 in the world and can therefore, sustain that positioning towards a top customer.

And maybe that's what it's also -- and we can grow with the successful brands and can defocus descope more the unsuccessful brands. So we are in that ideal situation of being a multi-brand digital luxury player. And also from an investment perspective, and I think that's why you're all here. It's also, I think, a good space if you want to invest in the luxury industry, we are kind of a more actively managed customer -- luxury ETF brand, so to say, because we can balance the effects.

And so for us, to answer your question a bit longer, the customer state is very differentiated. And we can talk about geographies. But on the top customer side, it's a very high resilience and it has always been. And you mentioned U.S. I mean we -- in the last quarters, we grew U.S. 20%, plus 20%, 25%, 30%. That shows you that also in addition to the top customer focus, we're a bit detached from an overall -- how does the overall luxury customer develops.

Right. So you've explained well how maybe the underlying trends in luxury are relatively muted, but your part of the business is growing 8% to 10% in aggregate. But you've seen quite a bit of change in your environment with -- I was mentioning your position as being the sort of last man standing.

You've had a lot of changes, not just with the evolution of Saks.com and what is now called the Exemplar Group, which is actually with us today as well. But can you maybe explain how your ecosystem of multi-brand selling online of luxury has changed and now you can benefit from recent changes?

I mean the overall story of Mytheresa before LuxExperience was always intact, always double-digit growth and strong profitability with a focus on this high end of this top customer. And with that, we have 2 key ingredients that you need to have to be successful, which is a very high -- very loyal customer base, top customer that comes back, not just because of discounts or marketing efforts.

And with that positioning, a very high AOV. I mean we have more than EUR 800 AOV, and that helps you on the unit economics, and that translates into a very profitable business model. On the overall market side, yes, you mentioned that we are now the undisputed #1 global multi-brand digital luxury player. And that helped, obviously, with Farfetch, Matches, SSENSE, LuisaViaRoma and also the new situation on Saks.

That helped on the competition side as we see the brands really focus on us and want to grow with us as we cater to that multi-brand luxury customer with a lower view on discounts and with really understanding what the customer wants and have a very high-quality experience. We have the highest Net Promoter Score in the industry, over 80%. And this top customer, you always have to bear in mind is very demanding. If you not only look at curation, but also if you look at operational execution and quality.

Okay. So you talked about the compounding nature of growth in the U.S. I've always had this idea that the U.S. was a fast-growing market for luxury, but a quite expensive one. The cost of doing business seems to be pretty high here. But -- so I'm wondering if you can compare and contrast the future potential of the U.S. for your business relative to other regions. I think surprisingly, the Middle East was a highlight from last quarter.

If you project the next few quarters, and I know you're publishing in 2 days, so I'm not asking you about now, but more long term, where do you see incremental growth coming from? And are there real differences in terms of economics if you're dealing with maybe some remote parts of Europe like going into Eastern Europe or into countries where maybe the brands don't have a physical presence and you can help them out or parts of Asia or if you can compare and contrast the potential, but also the economics of the different regions?

Yes. I mean to answer that question, I mean the overall economics, if you look at gross margin -- price levels, gross margin and then operational like shipping and payment costs and so on, is very comparable if you look at different parts of the world. And -- this is our key benefit. We deliver to 133 countries without having the need for a facility for logistics setup in that country.

So we can always shift and balance also ETF, we can balance certain countries where we see, yes, there's great growth. And then looking at the geographies for us, you rightfully mentioned that U.S. has always been a strong growth market. And I think for the last 2 years, 3 years, always double-digit growth, independent of Ukraine, Iran, Middle East situations, U.S. has always been a top growth market and will stay for us a top growth market, double-digit CAGR. That is key for us.

China is difficult, remains difficult for us as a mini part, thank God. But there are other growth spots in APAC. If you look at Singapore, Taiwan, Korea, you mentioned, very strong growth there. And Europe has always also been a growth story for us. And Europe is not Europe. As you know, there's so many complex countries. And so every quarter, if I look at the revenue performance by country, there's high dynamics. And right now, I mean, very strong growth Cyprus, Greece, Bulgaria, Romania, but also Italy, Spain, Portugal.

You mentioned rightfully mentioned that a lot of them are like retail deserts. And therefore, we come into play and can serve at home being a digital player. And so for us, there's growth all over the world, especially if you look at the TAM, the market size and our market share, which is still tiny. We're still tiny. Also in the U.S., we're still tiny. And therefore, it's really good, balanced growth. As you know, the overall wealth in the world is increasing and luxury enthusiasts also in the world are increasing, which is good.

Right. I was wondering if we can talk a bit about categories. I might be under the influence a bit because I used to work at Cartier when I was young. But I've read quite a few articles around Mytheresa signing up a few jewelry brands. And I'm wondering where do you go with this? How do you assess the potential of that new category?

And then obviously, beyond jewelry, do you have any obvious gaps in terms of product categories that you'd love to serve your target consumer with eventually?

Of course. I mean it all has to fit to the core Mytheresa and NET-A-PORTER, MR PORTER brand. But fine jewelry, obviously, is a key growth area for us. We have signed on a couple of high-caliber brands. And you saw from the -- and you mentioned earlier from the Richemont brands, I mean, fine jewelry or what should I -- there's a lot of brands that really perform well and that we want to grow with.

So you're right, with us very much focused on the ready-to-wear section, less bags and accessories and shoes. We want to grow that segment significantly, and this is also a key growth driver.

And on unit economics, it also helps with a high AOV, with a high price, it helps. So definitely more to hear from that, which brands we are getting on board. And fine jewelry is obviously catering exactly to our top customer cohorts that we want to focus on.

We had at Mytheresa added menswear, MR PORTER, very strong, very successful. Kidswear, -- and obviously, on category side, you can think of all the luxury categories that, for example, LVMH has luxury experiences and so on to add to that. But it has to -- from an end-to-end perspective, has to work. It has to have a clear reason why now Mytheresa NET-A-PORTER is also selling that.

And that cannot be an artificial add-on. So we really have to think about what to -- how to focus and how to go about that. But you're right, the overall growth perspective is very strong. The market is growing. We're increasing market share. Every month, we are gaining market share in the core segment that we have, womenswear and already with fine jewelry, menswear, kidswear, we have growth categories. We can grow geographical. So it's exactly. I mean, LuxExperience will continue to be a growth stock definitely.

Okay. You talked a lot about AOV, and I was wondering if you could dig a bit further to -- for me to understand, is AOV progressing because you're seeing consumers trade up within the purchases? Or are you seeing more a case of maybe higher units per order? How do you track AOV? And how do you think it develops in the future?

Yes. I mean you rightly mentioned, I mean, the last quarters, we reported very strong AOV growth, 7%, 12%, 13%, which is great, helps on the unit economics. And the key driver of the AOV growth is the shift of the customers. So as you've seen, we focus more and more on top customers. So the share of the top customers and the revenue share of top customers increases and they buy higher-priced items.

So this is the core driver is not that every customer buys now higher-priced items, but it's a mix effect of if you have a higher share of top customers, then obviously, your AOV increases because with the higher share of top customers, also my full price share increases because the top customers are less discounts. So -- and obviously, if you have less discount, you have a higher full price.

So top customer, higher full price share, more AIV, as we call it. And -- but we also see a bit more items per order. So on all fronts, it might come also with the lack of competition and different market environments. Again, we're happy. We can grow items per order. We can increase the higher-priced items, more tuned towards the top customers. Yes.

Okay. So I think naturally, as higher-end customers account for a bigger part of your business, you have a lower level of discount. But overall, I think there's been a sort of conscious decision to get rid of discount more than in the past. And I'm just wondering how do you balance that? Because what is the type of -- not necessarily for the very high-end consumers, but more for entry consumers.

What is the trade-off between the traffic that you might generate by being discounting a bit more and keeping a very tight ship and being very disciplined. How do you -- because that's, I think, a recent evolution in the model that you've consciously decided to be less discount driven. Is there a lot of sensitivity?

I mean we've always -- I mean, everybody tries. I mean every PowerPoint slide, you always see, Yes, just get more top customers and do less discounts. So everybody obviously wants to follow that route. And Mytheresa and always has been on the route for top customers. Obviously, in the post-corona phase where every brand grew, the whole market grew, so everybody grows. And then obviously, the total customer -- number of total customers increased with us as well.

But our focus on top customers, you mentioned the IPO earlier in '21, I think we reported 2.5%, 3% of our customers make 25%, 30% of our business of our revenues. That has increased significantly throughout the years, the last 6, 7 years, over now over 4% make over 40% of the revenue. So it has always been a top customer focus.

But you're also right that the discount level in the industry has decreased significantly. And I think a lot of people still remember the '23 situation when there was too much inventory in the market. There was some disruption that caused everybody to have bad numbers and also led to the fallout of a lot of competitors that could not deal with that. That situation has completely changed. So the competitive situation, the market situation also from the brands themselves have changed significantly.

So there's much less inventory in the market, much less need for discount or ability to discount. Even if you -- some local competitors are really aggressive and do minus 20%, minus 30%, they don't have the merchandise to do it. So the effect is much less felt. So compared to 2, 3 years ago, the situation of the industry, the situation of the market is much better on the discounting logic. And for us, it was never a logic should I discount a bit more to attract more customers? Because you saw also in the last quarter, our active customer base decreased a bit even because we -- our currency is the top customers, the top customer share.

This is our KPI, not the overall total customers as is always a mix, aspirational customers, standard customers, top customers. So there's no change in strategy, no discipline, but '23 was a special situation. And from that, we had to really focus on or continue our focus on being well disciplined. And it's a self-reinforcing wheel because then also the brands look at us and say, this is a great partner because you really -- you understand and you care for protecting our brand equity.

And you are a great partner because you also have those customers that we actually would love to talk to. We know it's a multi-brand customer. We know the customer doesn't go through all the stores, just doesn't have time. And therefore, you help us to have the digital visibility towards that customer. And therefore, the collaboration with the brands increased strongly over the last 3 years. Be it events, be it exclusives, be it early deliveries.

So they're more willing to...

Yes, more willing. They see us as a key partner. Obviously, they always also want to focus on their D2C and strengthen their channels. But they know that this will never solve for 100%. They also always need a strong wholesale partner. Not that they have now like a 50% interest in wholesale partnership, but more on -- it's an addition.

Some people have like 60%, 70% of D2C, have 70%, 80% of their own D2C. But it's a great avenue for them to grow and to also speak to that multi-brand customer.

And so conceptually, if you project the next 3, 4 years, imagining that the algorithm of growth is, let's say, 10%, like low double digit. Within that growth, is it fair to assume that the bulk of that growth will come from you being able to sell more to existing and existing cohorts? Or is there an important part of recruitment within that 10% growth?

It is always new customers. So the strong focus is on new customers. It has always been, as we have coming from a very small base, but it's -- but it's not the overall number of customers that counts. So it could be that the total number of customers goes down, but the value of a customer, -- the quality of it. Yes, high potential customer, top customer that comes with a higher AOV or higher revenue per year is then the key.

But nevertheless, our focus is still to win that customer, not to have -- look at our total customer base. I mean if I look at the total customer -- total U.S. top customers, it's tiny. So we have to grow the number. But we're happy that -- and we report on this KPI that the revenue per top customer also increases. So we're not diluting any definition of top customer or how we treat our top customers, but the growth will more come from the number of top customers, in my view.

Obviously, revenue per top customer is a key item. We have to grow there. The digital logic is helping because every top luxury customer, they buy everywhere, they buy offline, they buy online. But with an increasing online share, we benefit. And therefore, obviously, also revenue per top customer will increase. You mentioned fine jewelry. Therefore, also revenue per top customer will increase. So it's both. It's both effects, but it's a nice focus area. But a bit higher on the number on top customers, and it has always been that way.

Okay. So imagining I'm a newbie to the story, which is close to being correct. Just taking a step back, if you look at the different assets, I think I don't shop luxury much and I don't shop luxury online virtually at all.

But how would you describe the difference between your different assets, i.e., because there's always a fear that maybe you have a lot of overlap. If I look at Mytheresa versus NET-A-PORTER, MR PORTER, how do you ensure that the positioning is quite distinct and that you don't basically have a client that basically goes from one to the other and that sort of limits the pool of recruitment. Is it a regional difference? Is it a positioning difference? Is it a curation difference? How do you segment your different assets?

Very important question because obviously, with the acquisition, we exactly asked ourselves that question because if you don't see any value in the asset or just want to do a -- make a little bit of a Mytheresa out of NET-A-PORTER, MR PORTER, then this is the wrong way.

So we did a lot of commercial due diligence, looked at the customer cohorts. And what we found was quite interesting that the customer overlap actually is very low. It's 10%. And you can argue, well, not that far apart. So from a customer perspective, the brands are different. NET-A-PORTER, MR PORTER, more fashion-oriented, more -- higher number of brands. At Mytheresa, we have 250. NET-A-PORTER, MR PORTER, 550 newer brands, higher brand fluctuation, more newness.

For Mytheresa as more established luxury. And therefore, for multiple aspects, it is different. It was always different, different, very small brand customer overlap. And we obviously want to protect that. And therefore, we had set up complete different commercial teams, different to other competitors how they act. So we have different brand leadership and clear separation of marketing and buying.

So it's not like one big buying group that on Tuesdays buys for Mytheresa and on Fridays buy for NET-A-PORTER, this will not work. So they have to compete. They really have to go about differently and thinking exactly about the question that you asked on what is the brand equity? How do -- why do the customer -- why does the customer come to a NET-A-PORTER versus a Mytheresa and when and so on.

And this is a key focus for us to keep it really separate. But obviously, in the back end, to have then the synergy, the classic synergies that we need and have to achieve on IT, especially on operations, finance, HR, all the other topics that you can have in the back end. But front end, strong different commercial leadership, different marketing, different buying.

Okay. And so my understanding is if you look at the group and the different assets, Mytheresa is sort of a benchmark, I guess, in terms of profitability and the others are lagging. And I suspect part of the investment case, if you want to buy into the story is the other assets catching up. And I'm just wondering how does that happen? When does it happen? What do you need to put in place to show the market that actually the Mytheresa type of margin can be the margin that eventually the group gets to?

Yes. No, this is also -- I mean, a core focus area that we had from the beginning also when -- I think, in May last year, '25, we communicated our road map, our plan, how to increase the value of the overall group. And obviously, that [ NAP, MR P ] and YOOX highly unprofitable. Mytheresa increasing profitability. And therefore, the last quarters, we were able to show a sustained increase of profitability at Mytheresa. -- because also at Mytheresa, we're not there yet at the 7% to 9%. But the clear guidance of Mytheresa was there for this fiscal year, which ended in June to be around 6%, which is -- so we're almost there. We need to grow there more, which is fine.

And [ NAP MR P ], different to YOOX. I mean YOOX off-price business, different operational set of different business model. NET-A-PORTER, MR PORTER, we always guided that this fiscal year '26 is kind of a breakeven year. And then fiscal year '27 is also profitable for [ NAP MR P ] not at the Mytheresa level, this will then be more achieved in the next years.

But if you look at the underlying fundamentals of NET-A-PORTER and MR PORTER on, for example, their top customer share, very comparable to Mytheresa. Their gross profit margin, very, very healthy. What they're lacking is operations and IT, which is the more difficult part. But the good thing is not the commercial part. And therefore, you know how difficult is to change the IT setup, and that's why we always guide and report on how far are we with the IT and operations and it's in the P&L, it's reflected in the SG&A cost ratio.

And therefore, clearly on scrutinized guidance to report always increasing performance or a lower SG&A cost ratio to get the profitability up. So it's in the back end to come up to the profitability level of Mytheresa. And there's no reason why NET-A-PORTER, MR PORTER should not be at the same profitability level at Mytheresa. It's the same because all the intrinsics are fully intact. YOOX is a more lower AOV, lower gross margin type of offline business, even more restructuring to be done. That's why we guided YOOX will be profitable in fiscal year '28, also complete new setup of warehouses of operational model, focusing on Europe instead of more costly Asia and U.S. markets, but also there, we have all the ingredients to turn this around because we are the best operator.

We have done an IT stack restructuring ourselves at Mytheresa 3 years ago. So we have the people and we know what to do. It always good. And therefore, it's a great asset situation because if you look at the valuation of Mytheresa stock right now, it's very low. So exactly, as you say, this is a core question that everybody asked, how far are you? What is the trajectory? How well? And we have to report every quarter, an improvement in that situation, NET-A-PORTER, MR PORTER, profitability, YOOX improving the loss situation and then coming to a good trajectory of this is always our goal, the 4 billion net sales of 7% to 9% adjusted EBITDA. And if you calculate that and convert it into multiple in the share price, it is a real upside. It's a real upside. And that -- it's a high opportunity for value generation, and that's why I'm here.

So with this idea that valuation might be low and just -- we need to finish off in 2 minutes. But if you look at the shareholding structure, so you still have Richemont with 35% share. You have the consortium of funds with, I think, close to 40. So how do you think about the risk or the opportunity of a liquidity event to increase the float eventually?

I mean there should never be like a negative sentiment on that. But I mean, also the anchor shareholders really see the value in this. And that's why the liquidity event is not on anybody's schedule right now.

Okay. Anything you'd want to conclude with to any message, I mean maybe are -- some of the investors not getting part of the story that you want to pitch or any sort of recurring misunderstanding that you'd want to address?

No, it's really you have to take a closer look at LuxExperience to really understand the uniqueness, the unique positioning of being a multi-brand global digital luxury leader and to see how valuable that positioning is and also how defendable is. I mean we are operating -- our position is high barriers of entry because obviously, it all relies on a very strong relationship with brands.

And you cannot tomorrow show up and say, let me have to sell a brand, you're back or whatever. So it's a very strong position, and we are seeing really good momentum.

Okay. Well, help me thank Martin for the message. Thank you so much for being here.

Thank you.

Greetings, and welcome to the LuxExperience Third Quarter of Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Today's call is being recorded. [Operator Instructions] It is now my pleasure to introduce your host, Martin Beer, the Chief Financial Officer of LuxExperience. Thank you, sir. Please begin.

Thank you, operator, and welcome, everyone, to the LuxExperience Investor Conference Call for the Third Quarter of Fiscal year 2026. With me today is our CEO, Michael Kliger. .

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 investor.luxexperience.com.

I will now turn the call over to Michael.

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 third quarter of fiscal year 2026 of LuxExperience. We are very pleased with the results of the third quarter. We are making great progress with the ongoing transformation as a group. We achieved a GMV growth of plus 0.3% at constant currency in the third quarter, despite the outbreak of war in the Middle East in March.

We also achieved a profitability at group level of plus 0.9% in adjusted EBITDA margin which is the second [ profit ] quarter in the row. Finally, we achieved again significant improvements on many KPIs across all 3 business segments underlining the successful execution of our transformation plan. We are fully on track and will achieve our guided results for the full fiscal year 2026. Our success story with our Mytheresa business continues as we outpaced the market in terms of growth and further improved our profitability despite the geopolitical headwinds in March which, in the meantime, have subsided for our resilient customers.

We also saw further improvements at NET-A-PORTER and MR PORTER, driven by the new strategic focus on customer service, fruit price selling and cost discipline. At YOOX, our strategy focusing on the healthy core of the business and the good progress in implementing an [indiscernible] operating model continues to show clear results in line with our expectations. In addition to our guidance for fiscal year 2026, we, therefore, also confirm our medium-term target for the group, with net sales of EUR 4 billion, and an adjusted EBITDA margin of 7% to 9%.

Just to provide context for the EUR 4 billion net sales medium-term target, the most recent Bain and Altagamma report estimates the global online luxury market at EUR 75 billion. Overall, LuxExperience is the clear digital multibrand leader for luxury and [ Susie ] globally. And we are perfectly positioned to benefit from the sustained growth of digital luxury and ongoing consolidation within the sector.

Before reviewing the performance of the third quarter further, I also want to mention that we have successfully closed the sale of the set of assets powering the outlet on April 30, following the binding agreement announced last October. We are very confident to have found the right new home for the outlet and we now are able to solely focus on our YOOX business in off-price. Let me now comment on the performance of the Mytheresa business in more detail. We are very pleased with the strong results in the third quarter of fiscal year 2026, which are fully in line with our expectations.

Mytheresa's clear focus on wardrobe building big spending luxury customers and their need through expiration by duration highest quality service and community building with physical events drove again strong profitable growth. Our very resilient, consistent business model and excellent execution allowed us to achieve this despite the headwinds from the outbreak of war in the Middle East. In Q3 of fiscal year 2026, Mytheresa grew its net sales by plus 9.9% on a constant currency basis compared to Q3 of fiscal year 2025. In the first 9 months of fiscal year '26, net sales grew by plus 12.0% on a constant currency basis in the United States, which is a key market for growth, net sales growth reached plus 33.8% on a constant currency basis in Q3 fiscal year '26 compared to Q3 fiscal year '25.

In the third quarter, the U.S. accounted for 25.8% of net sales of our total Mytheresa business. While we saw in March, the impact of the war in the Middle East on customer sentiment globally, we have already seen again, strong growth in the business in the last weeks. This proves the resilience of our business model as our clients are globally mobile and dip and sentiment are mostly short-lived. Mytheresa's financial strength and continued growth are driven by this outstanding customer base. In the third quarter of fiscal year 2026, the top customer base of Mytheresa grew by plus 18.6% compared to the prior year period.

Furthermore, the average spend for top customer in terms of GMV remained quite stable with minus 1.5% in Q3 versus Q3 fiscal year 2025. The average order value last 12 months from Mytheresa increased by plus 12.5% to a record high EUR 847 in Q3 fiscal year '26, demonstrating the success of our focus on selling full price, high-end luxury products to top customers. Furthermore, Mytheresa gross profit margin grew by 240 basis points in Q3 fiscal year 2026, which further underlines our successful strategy of full price selling.

Lastly, Mytheresa's customer satisfaction, which we measure by our internal Net Promoter Score reached 86.8% in Q3 fiscal year '26, representing the highest quarter score in the last 4 years. All these figures serve as a testament to the fundamental strengths of our Mytheresa business. Our success with big spending Wardrop building customers makes Mytheresa a highly desired partner for luxury brands. In the third quarter of fiscal year 2026, we saw, again, many high-impact campaigns and exclusive product launches, underlining Mytheresa strong relationships with luxury brands.

We were the exclusive prelaunch partner for DennakVazali BB as Creative Director, Gucci with the Lafamilia collection for women and menswear. We also prelaunched styles of Balenciaga and Alias runway collections as well as of San Laurent Summer '26 connection. We launched exclusive run relooks from [indiscernible] and Bottega Veneta in Spring Summer '26 collections for womenswear and menswear. It is also very noteworthy that we launched the namesake brand of PD Filo on our website in March. Please see our investor presentation for more details on these capsules and exclusives.

In addition to creating the variability for our top customers, really exclusive digital campaigns and product launches, Mytheresa also creates desirability and a sense of community for the top customers through unique money can buy physical experiences. Highlights included an intimate Valentine's Day, Cocktail, Mytheresa hosted together with Kate in attendance of the Creative Director, Kate Holstein at DemomanSpar in New York. In Florence, Mytheresa created a 1-day experience with Gianvito Rossi for his namesake brand. Guests enjoyed a private visit to [indiscernible] followed by a Garden -- welcome and dinner at Villa Cora.

Another highlight was an industry cocktail event in Shanghai that we hosted for executives and key partners from leading luxury brands at the iconic Spargo, Shanghai, reinforcing Mytheresa's commitment to further strengthen its presence in the Chinese market. Finally, Mytheresa continue to offer guests a captivating experience at the Mason Mytheresa pop-up in [ Sonora ]. The setting brought Mytheresa's world to life through [indiscernible] shows, presentations and workshops for invited guests. Please see our investor presentation for more details on these unique money can buy experience.

To sum it up, Mytheresa delivered strong profitable growth, fully in line with our expectations in the third quarter. We see this as further proof of the strength of our business model and consistency of our execution. Martin will later show how the strong top line results translated into excellent bottom line results.

Let me now comment on the luxury segment comprised of NET-A-PORTER and MR PORTER. In the third quarter of fiscal year 2026, we saw continued improvements as a direct result of the new strategic focus on full price selling, cost discipline and on customers seeking editorial inspiration and brand discounting. In Q3 fiscal year 2026, net sales declined by minus 5.1% on a constant currency basis versus Q3 fiscal year '25 for NET-A-PORTER and MR PORTER combined.

In the first 9 months of fiscal year '26, net sales declined by minus 1.6% on a constant currency basis. Europe, excluding the U.K., increased by plus 4.3% in terms of net sales in Q3 fiscal year '26 compared to the prior year period. The overall net sales decline was driven by the ongoing strategic focus on higher-value customers and the reduction of promotions compared to Q3 fiscal year '25. While we saw in March, also the impact of the war in the Middle East on customer sentiment globally, we see again solid growth for Net-a-porter and MR PORTER in the weeks since end of March. Thanks to the resilience of our customer base to such exogenous shocks.

While the overall top line for Net-a-porter and MR PORTER combined declined in Q3 fiscal year '26, the average spend in terms of GMV per EIP, the so-called extremely important people, was quite stable with only minus 1.4% in Q3 fiscal year '26 versus Q3 fiscal year '25. The average order value last 12 months again increased by plus 7.9% to EUR 865 from Net-a-porter and MR PORTER combined. The gross margin increased by a high 700 basis points in Q3 fiscal year '26, driven by a higher share of full price sales and significantly reduced discount activities versus last year's period.

The customer satisfaction at Net-a-porter, measured by our internal Net Promoter Score has seen a consecutive improvement from 62.3% in Q1 to 65.3% in Q2 and now 68.1% in Q3, which is an increase by plus 890 basis points compared to Q3 fiscal year '25. The secret sauce of LuxExperience is clearly showing its effect. All these KPIs point to a significantly improved health and quality of the business of Net-a-Porter and MR PORTER combined. In the third quarter of fiscal year 2026, Net-a-Porter and MR PORTER continued to drive customer engagement through uniquely engaging editorial content and unique EIP experiences. Net-a-Porter invited VIPs, pacemakers and EIPs to an exclusive 3-day winter experience, including snow sowing train and evenings at a hidden speak easy cabin in the newly opened one and only resort in Big Sky in Montana.

During fashion months, Net-a-porter celebrated New York Fashion Week with the dinner hosted with Bill Chavali, attending guests included Julia Fox, Jack Harlow, Becky G, [indiscernible] Linsontario, to name just a few. During London Fashion Week, NET-A-PORTER partnered with Jonathan Anderson, for a private tour of his brand new JW boutique exclusively for Net-a-porter EIPs. Moreover, Net-A-porter launched its Spring/Summer '26 campaign, Louville, in March. The series of video first vignettes, storytelling and celebrating the new season's key fashion achieved a global media reach of over 64 million impressions. MR PORTER featured exclusive interviews with Hollywood icons John and Kit Harrington on the MR PORTER Journal.

John Ham story reached 2.4 million views on Instagram. A video story about Danish brand NN07 reached over 5 million views. MR PORTER also created global EIP events, including a 2-day immersive style suite in Hong Kong, a co-hosted brand dinner with bespoke Shoemaker, George Clevely in Miami and invited 10 guests to an intimate lunch hosted by CirapolSlift in London. MR PORTER also launched exclusive capsules such as a 48 piece capsule with Brunello Cucinelli. Please see our investor presentation for more details on Net-a-porter and MR PORTER'S unique editorial content and exclusive events.

In summary, the third quarter is seeing further sequential improvements at NET-A-PORTER and MR PORTER fully in line with our ongoing transformation platform, both businesses despite the headwinds from the war in the Middle East in March. That, by the way, have already decreased significantly in recent weeks. Martin will later provide more details on the progress achieved in bringing the NET-A-PORTER and MR PORTER luxury segment back to profitability rather soon.

Lastly, let me comment on YOOX performance in the third quarter of fiscal year 2026. We are pleased with the progress of the ongoing transformation of YOOX, including a focus on core countries and the implementation of a leaner operating model to better serve a lower margin and low AOV nature of the off-price business. In parallel, YOOX celebrated a brand rebar with the successful launch of its new brand identity in line with its new strategy and positioning. In Q3 fiscal year 2026, net sales declined by minus 7.4% on a constant currency basis versus Q3 '25 for YOOX.

In the first 9 months of fiscal year net sales declined by minus 8.9% on a constant currency basis. In Europe, excluding the U.K., a clear geographic focus going forward, net sales increased by plus 7.0% compared to Q3 fiscal year '25. The overall net sales decline is mainly driven by the reduction of weight of overseas markets with high cost to serve, in line with the renewed focus on a healthy geographic core for the YOOX business. While the overall net sales decline for YOOX in Q3 fiscal year '26, the top spending customer average spend in terms of GMV grew by plus 1.3% in Q3 fiscal year '26 versus Q3 '25. The average order value last 12 months increased by plus 1.7% to EUR 247 in Q3 fiscal year '26.

The gross profit margin increased by 620 basis points to 37.5% in Q3 fiscal year '26 as compared to 31.3% in the prior year's quarter. demonstrating the success of the new strategic focus on the healthy core. YOOX customer satisfaction measured by our internal Net Promoter Score reached 48.8% in Q3 fiscal year '26 increasing by plus 1,270 basis points compared to Q3 fiscal year '25, showcasing also the effect of the LuxExperience secret sauce on YOOX customer service operations, all the above KPIs indicate that the focus on the healthy core of the YOOX business is bearing fruit.

In the third quarter of fiscal year '26, YOOX celebrated the rebirth of its new brand identity, in line with its new strategy and positioning. YOOX unveiled its future color scheme, proprietary layouts and a renewed tone of voice in March. The rebranding has been rolled out on digital channels with full implementation, including new app and website interfaces and off-line packaging planned until the end of the year. The brand reburst story drove strong media coverage. Please see our investor presentation for more details on the new brand identity. Moreover, YOOX leverage cultural moments across Milan and Berlin to create memorable experiences, signaling the brand's reports.

In Berlin, YOOX, together with Sleek Magazine hosted and exclude party during Berlin Fashion week at the famous Borchert lessor that seamlessly blended design, culture relevance and community. During Berlin, YOOX challenged the imagination through a movie-inspired experience at the Italian Enmacy party. In Milan, YOOX hosted its timeless brand event and vein Camarillo, a fitting room installation and new stage for self-expression creativity and reinvention.

The event brought together KRL from the fashion industry and lifestyle media at Paladina Appian at the heart of Milan Fashion Week. During Milan Design Week, YOOX introduced in Camarillo unveiled by Qatar Bart. The project was selected as one of the district's highlights and was introduced during the official press conference. All events boosted customer engagement through community building, delightful experiences increased the guests emotional bond with YOOX and generated reach on social media and trade coverage. Please see our investor presentation for more details on these events.

To sum it up, the focus on a healthy core for YOOX continues to show clear improvements in line with our expectations and the brand rebirth of YOOX with a new brand identity and new customer focus has only just begun. Let me now also provide you with a quick overview on the application and usage of AI that luxury experience as we have received questions on our approach to this technological sysmic shift. For a long time, we have used intelligent algorithms to optimize our customer targeting and marketing spend based on predictive models for customer value estimates.

With the revolution of generative AI, we have expanded widely the usage of algorithms to improve the customer experience with better and more personalized, real-time content such a product and newsletter, ecos, on-site search, on-site merchandising as well as product copy and imagery. We are live here based on our partnership with Google Vertics. We are also seeing huge benefits in software development to support our aggressive tech transformation road map at NET-A-PORTER and MR PORTER. We are constantly expanding the use scenarios with a clear focus on improving the quality and accuracy of our customer experience. Please see our investor presentation for more details on the usage of AI at LuxExperience.

And now after having reviewed the very good commercial results, and improvements across all our businesses, I hand over to Martin to discuss the financial results in detail.

Thank you, Michael. As Michael mentioned, we are very pleased with our strong results in Q3 of fiscal year '26, running from January to March 2026, despite headwinds from the Iran conflict. We again achieved a positive adjusted EBITDA margin at plus 0.9% in the quarter. This is a significant improvement from the minus 3.2% in the previous year Q3, despite our pose on improving profitability with deliberately accepting lower sales at that MR P and we were able for the whole group to keep net sales stable in the quarter.

For the first 9 months of the fiscal year, net sales grew by plus 1.6% on constant currency. I will detail the second performance a little later, but already want to highlight our continued success at Mytheresa. There, we again outgrew our peers in the quarter with plus 9.9% net sales growth at constant currency, taking significant market share and boosting Mytheresa's adjusted EBITDA profitability by plus 50% compared to the previous year quarter. In addition to our continued success in strengthening our target customer relationships at all store brands, we also see that the cost initiatives in our transformation plan are working effectively.

SG&A costs in Q3 are down minus 12% or minus EUR 15.9 million compared to the previous year period, including capitalized IT costs in previous year. Compared to previous Q2, just 3 months ago, they're down minus 8.6%. In line with simplifying our group structure and focusing our transformation efforts we have successfully closed the sale of the outlet end of April. We continue to diligently execute our transformation plan, fully in line with our expectations and confirm our medium-term targets of EUR 4 billion in net sales and an adjusted EBITDA margin of 7% to 9%. I will speak later to our expectations for the full fiscal year '26 ending in June '26.

I will first review LuxExperience performance at group level and then walk you through the performance of our 3 business segments. Luxury Mytheresa, luxury NET-A-PORTER, MR PORTER and off-price business of YOOX in more detail. In this call, I will focus top line development on net sales. Our GMV numbers follow a similar pattern and are, as always, fully disclosed in our press release and quarterly report. Unless otherwise stated, all numbers refer to euro. In Q3 of fiscal year '26 and at group level, we kept net sales stable in relation to Q3 of previous year, and despite deliberate focus on more profitable customer segment at Net and MR P and YOOX and despite headwinds from the IRM conflict.

In the first 9 months of this fiscal year, net sales grew by plus 1.6% at constant currency. On a reported level, Net sales in the quarter declined by minus 5.2% given the wide euro-U.S. dollar FX movements since last year. For the full fiscal year, we continue to expect reported GMV at around EUR 2.6 billion and net sales at around EUR 2.5 billion. Our SG&A transformation initiatives are clearly visible also at group level. With significantly decreasing our SG&A expenses and despite lower reported top line, our SG&A cost ratio improved again in this quarter. Compared to the preceding Q1 and Q2 of fiscal year '26, the SG&A cost ratio decreased 360 basis points from 21.9% in fiscal Q1 and 19.1% in fiscal Q2 to now 18.3% in Q3 fiscal year '26.

In Q3 of fiscal year '26, adjusted EBITDA margin on group level was positive at plus 0.9%, significantly improving from the minus 3.2% in previous year Q3. This is the second consecutive quarter with positive adjusted EBITDA profitability due to the phasing effects between Q3 and Q4, we expect Q4 of the fiscal year to also be around Q3 levels of adjusted EBITDA profitability. For the full fiscal year '26, we expect to break even on adjusted EBITDA, fully in line with our guidance of minus 1% to plus 1%. First 9 months of the fiscal year, operating cash flow was at minus $117.9 million. We expect that the operating cash burn for the full fiscal year '26 will stay below this level.

This is significantly better than our guidance of a minus EUR 150 million maximum operating cash burn. As a reminder, we are executing our transformation plan on a fully funded basis with total cash outflow during all years of the transformation plan to range between minus EUR 350 million and minus EUR 450 million. We expect to break even on an operating cash level in around 2 years. The group ended Q3 of fiscal year '26 with cash and cash financial investments of $436.9 million. Together with our revolving credit facilities, our total available funds are at $612.8 million. We are in an ideal situation to operate a fully funded information and our growing business model completely debt free.

Let's now review the performance of our Mytheresa business. During the third quarter of fiscal year '26, net sales grew by plus 9.9% on a constant currency basis to $256.0 million compared to the prior year period. In the first 9 months of the fiscal year, net sales grew by plus 12%. On reported numbers, net sales grew by plus 5.6% in the quarter and plus 8.7% in the first 9 months. We continue to significantly take share in overall soft market and with headline from the Iran conflict. For the full fiscal year and unreported numbers, we expect Mytheresa to grow net sales by a high single-digit number.

In Q3, Mytheresa gross margin increased by 240 basis points to 47.1% as compared to 44.8% in the prior year period. we were able to, again, significantly increase the gross profit margin with our continued focus on full price sale. This continued success on gross margin level is even more impressive, but at the same time, we are capturing market share with significant top line growth. In Q3 of the fiscal year and driven by the new U.S. tariff situation, the shipping and payment cost ratio was up 250 basis points compared to Q3 of fiscal year '25. As we pay all duties for our U.S. customers, the cost increase for us is reflected in our shipping and payment cost ratio.

We are carefully monitoring and managing duty rate changes in the U.S. In Q3 of fiscal year '26, the marketing cost ratio decreased by 40 basis points from 10.1% in Q3 of fiscal year '25 to 9.7%. This is mostly due to a phasing effect between fiscal Q3 and upcoming fiscal Q4. We therefore expect the marketing cost ratio in Q4 to be higher due to promotional marketing costs shifting into Q4. The selling, general and administrative, SG&A, cost ratio decreased by 80 basis points to 12.2% compared to the prior year quarter due to continuous cost leverage. Below and manageable SG&A cost ratio at Mytheresa has proven effect for the resilience of our business model.

The focus of our transformation plan is to implement this resilience also at Net, MR P and YOOX. Subsequently, the adjusted EBITDA margin at Mytheresa expanded 160 basis points during the quarter to 5.5% as compared to 3.9% in the prior year period. In absolute terms, adjusted EBITDA grew by plus 50% to EUR 14.1 million versus the prior year quarter. For the first 9 months of our fiscal year, the adjusted EBITDA margin significantly improved 190 basis points from 4.3% to 6.1%. In absolute terms, adjusted EBITDA grew by plus 56.6% to EUR 44.5 million in the first 9 months of the fiscal year.

Due to the phasing of some cost items from Q3 into Q4, we expect Q4 to have a similar overall profitability margin of Mytheresa compared to Q3. We are continuing our effective inventory management with inventory levels at Mytheresa, up only 3.1% compared to period this year despite continued strong top line growth.

Let me now comment on the luxury NET-A-PORTER and MR PORTER segment in more detail. In the third quarter of our fiscal year '26, net sales declined by 5.1% constant currency basis to EUR 231.6 million. in the first 9 months of the fiscal year, net sales declined by 1.6%. This is a strong sequential improvement versus the same period in fiscal year '25. On a reported basis, net sales decreased by minus 11.7% in the quarter. The top line decline was a deliberate action to focus on higher value customers and to reduce the promotion intensity compared to the previous year quarter.

This is visible in the 700 basis point increase in the gross profit margin. The gross profit margin in Q3 of fiscal '26 increased to 48.5% from 41.6% due to a higher full per share and reduced discounting activities as compared to prior year. For the first 9 months of the fiscal year, the gross profit margin increased by 250 basis points to 47.3%. With growth in fiscal Q4, we expect Net and MR P to have net sales decline by only a mid-single digit for the full fiscal year '26, our focus of our transformation plan remains on bringing down the SG&A expenses.

SG&A expenses in water decreased by minus $5.6 million or minus 8.9% compared to previous year, a strong decrease of SG&A expenses as well compared to the preceding quarter, which was fiscal Q2. SG&A expenses went down by EUR 9 million or minus 13.7%. In the first 9 months of the fiscal year, SG&A cost savings amount to $18.0 million or minus 8.8% of the cost base. All these comparisons include capitalized IT expenses in the previous year for better transparency on the true cost base.

With reembarking on top line growth in coming quarters, the SG&A cost ratio is expected to improve even further. The 23.4% SG&A cost ratio in this quarter compares to the 12.2% of 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 replatform, corporate overhead cost savings and reembarking 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 productive and the overall IT replatforming is being executed according to plan.

The layoff programs in all jurisdictions are now fully concluded with full effect to be visible in Q4 of fiscal year '26. In some, our comprehensive turnaround plan until fiscal year '28 is being executed diligently and fully in line with our expectations. With the significant improvement in the gross profit margin, the Net, MR P segment, again, almost broke even in this quarter with an adjusted EBITDA margin at minus 0.5%. Therefore, also on bottom line, a significant sequential improvement from the minus 2.5% adjusted EBITDA margin in the first 6 months of the fiscal year.

Inventory levels at Net and MR P are slightly up, plus 2.8% to previous year. And going forward, we will continue to enable top line growth at Net and MR P with adequate working capital. Let me now review the financial performance of the off-prices of YOOX, in line with our transformation plan. At YOOX, we are focusing on the healthy core of the business, deprioritizing overseas market with high cost to serve, discontinuing unprofitable marketplace model and implementing a lean operating model, supported by a simplified off-price tech environment.

Continuing the path of a more comprehensive restructuring effort at YOOX and we focus on the profitable customer core. Net sales declined minus 7.4% on a constant currency basis in Q3 year-over-year to $130.7 million. On reported numbers, net sales declined by minus 11.4%. This is a sequential improvement of minus 12.1% in the first half of the fiscal year. Same as in the Net MR P segment, A focus on the healthy core customer is visible in improvements in the gross over margin. In Q3 of the fiscal year, the gross profit margin at YOOX increased by 620 basis points to 37.5%.

In the first 9 months of the fiscal year, the cross-over margin increased by 250 basis points to 38.9% from 36.4% in the prior year period. The operational focus of YOOX is on a fulfillment model that is profitable. creating a lean business model that specifically tailored to the lower gross margin and lower AOV nature of the off-price business. In addition to lower duties and therefore, reduce shipping, payment costs, a 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 22.0% of GMV, down from 26.9% in the previous quarter and 29.5% in from Q1 of the fiscal year and despite the significant lower top line.

With this, the SG&A cost ratio in this quarter showed an improvement of 490 basis points compared to the previous 2 and 750 basis points improvement compared to Q1 of the fiscal year. On an absolute level, SG&A expenses in Q3 of fiscal year '26 decreased by EUR 10.3 million or minus 26.4% compared to previous year Q3. In the first 9 months of fiscal year, SG&A expenses decreased by minus EUR 17.9 million or minus 15.5%. All these comparisons include capitalized IT expenses in the previous year for better transparency on the true cost base.

And these are savings were achieved despite the stranded costs from the separation of the output. We are significantly streamlining warehouse, studio and customer care operations. The tech legacy cleanup and simplification is going well and with full speed. Corporate costs have turned down aligned to a lean business model. And with a focus on healthy European targeted growth, the SG&A cost ratio will continue to decrease to the targeted levels. During the third quarter of fiscal year '26, the adjusted EBITDA margin improved from minus 17.3% in Q3 of fiscal year '25 to minus 5.5% in Q3 of fiscal year '26. The minus 5.5% in this Q3 was also a sequential improvement from the minus 10.9% of the first 6 months of fiscal '26 despite deliberate top line contraction. With the execution of our defined transformation measures, we expect to return to adjusted EBITDA profitability of YOOX in 12 to 15 months and return to top line growth already into fiscal year '27. Inventory levels at YOOX are minus 11% to previous year. Fiscal '26, which will end next month in June, we're seeing exceptional growth at Mytheresa gaining market share with significantly improved profitability. Net MR P is expected to break even in the second half of this fiscal year and is reembarking on top line growth as of Q4 of this fiscal year. Net MR P and YOOX are reporting improved gross store margins and continually improving SG&A expenses. Therefore, on group level and for the full fiscal year, we continue to expect reported GMV at around EUR 2.6 billion and net sales at around EUR 2.5 billion.

On the bottom line, we expect to break even on adjusted EBITDA, fully in line with our guidance of minus 1% to plus 1%. Same as last year, we will communicate our fiscal year '27 guidance in our Q4 earnings call. In line with the visible success of our transformation plan, our trajectory towards our medium-term targets remain unchanged. We confirm our medium-term targets with EUR 4 billion net sales and an adjusted EBITDA profitability of plus 7% to 9% and the return to 10% to 15% annual growth rates. We will continue our track record of diligently executing our plan and delivering what we target.

And with this, I hand over to Michael for his concluding remarks.

Thank you, Martin. We are very pleased with our third quarter fiscal year 2026 earnings results. The third quarter came in fully in line with our expectations for the full fiscal year 2026 for the group. LuxExperience has delivered strong results and is fully on track with the transformation plan targets for NET-A-PORTER, MR PORTER and YOOX. Mytheresa continues to deliver profitable growth above industry standards, proving the strength and consistency of its business model. At LuxExperience, we possess the secret sauce in digital luxury creating a community for luxury enthusiasts around the globe. As a group, we are 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 will continue to generate significant value for our customers, brand partners and shareholders as we reach our medium-term targets. And with that, I ask the operator to open the line for your questions.

[Operator Instructions] Your first question comes from the line of Oliver Chen with TD Cowen.

Michael, Martin, regarding revenue growth and what you're seeing. I would love your thoughts on the markets and the regions, Asia, U.S. and Europe in terms of key trends. And also if there was upside or downside, overall revenues were a bit lower than Street. So your thoughts there as well as interplay with some of your comments on duties and then there's a lot of geopolitical events happening, obviously.

A follow-up question, Martin, operating cash burn, better than you expected. It sounds like you're making a lot of outsized progress on the SG&A side. But what led to that? And then as we look forward to EBITDA margins, in the mid- to high single-digit range longer term. What are your thoughts given that you're making so much progress. It sounds like the fixed cost leverage is a big opportunity as you work towards the 7% to 9% adjusted EBITDA margins over the years going forward.

Thank you, Oliver. Let me take the geographic question and then Martin can come back to the cash burn and the long -- medium-term EBITDA margin expectations. So in terms of geography, we still -- we see continued strength in North America as evidenced by the almost 34% growth of Mytheresa in that region. As mentioned or discussed last time in the quarter, quarterly earnings, Asia has seen sort of the bottom and then there are little green shoots of improvements. And therefore, we also continue to invest in the region. .

The Middle East was particularly the Arabic Peninsula was a very strong region. And thus, as highlighted, the outbreak of war in Iran was clearly a headwind in March. We are very pleased to already state and observe that, that dip has subsided. The headwinds have decreased. We are dealing with a very mobile global audience that is able to relocate and also the global sentiment that had suffered in March is fully back. So we see post strengths since the beginning of the last quarter, but still it impacted the quarter, the Q3, we just reported on.

And Europe, there are some very strong markets, particularly the Southern markets in Europe, where we see good influx of money of rich population, and that drives, of course, the demand for luxury group products. So the strength in Europe, solid strength in Europe and the buoyant market in the U.S. is really in terms of geography driving our business. And as mentioned, the dip in the Middle East seems to have already gone away looking at the current trading.

Martin, do you want to pick up the other 2?

Yes, I'm happy to ask that, Oliver. Operating cash burn in the last 9 months, you actually called that out minus $118 million, obviously, very much on Q3. As guided, Q3 typical seasonality cash out and also paying out most of the severance packages from the transformation plan of a layoff program of 700 people. So as expected in Q4, we expect a slightly positive cash flow. So we would clearly guide that the cash the operating cash burn of EUR 118 million will be significantly lower to the $150 million, which is great, which is good news, and it just shows our continuous focus on costs.

You saw that in the increasing gross profit margin, diligently executing also the cost measures, and we will continue to do so. So there is a as a continuation of the diligent execution of the transformation plan, which is the core driver of the operating cash burn in this fiscal year, what we estimate to be significantly lower than the originally guided maximum operating cash burn of EUR 150 million.

And as pointed out, the focus, the continued focus on SG&A expenses and the SG&A cost ratio highlighted hopefully, I highlighted that significantly in the call is also the key driver for achieving improvement in the adjusted EBITDA profitability. So for -- as we expect for this -- for the full fiscal year to break even. We then every year, will continue to see increasing adjusted EBITDA margins to 7% to 9% in the medium term, significantly driven by an improved SG&A cost ratio, and there is obviously one effect is the absolute reduction of SG&A expenses and reembarking our top line growth, which will also help on the SG&A cost ratios improvement.

Your next question comes from the line of Anna Glaessgen with B. Riley Securities.

I'd like to follow up on the questions on the impact from Iran and geopolitical headwinds. Was there any one segment that saw more of an impact? And if you could unpack if that was related to regional differences in mix or if it speaks to something within the core customer of that group?

Well, I mean, the most impacted region was, of course, our customers on the Arabic peninsula, been directly affected by water and we had a few days of no deliveries, but what is more and understandably so, people were obviously occupied with different things than shopping. That direct impact has subsided slowly, but still the direct impact on the Arabic Peninsula is still significant, but what you always have to consider that our customer base is quite mobile, has multi-residence so we have seen, of course, that customers from the region have moved to other locations. So we don't ship into the region, but we still serve these customers in other geographies.

And then with any of these quite shocking and significant news, there is also a global sentiment dip of insecurity. That is -- and that has been the fact for all of these unfortunate recent geopolitical events, that is often very short-lived and seems to be also short-lived here. So we did see a bit of hesitation in Europe, a bit of hesitation in North America after the outbreak of war, again, fully understandable, we -- our hearts and feelings are with all people that are affected by this. But since April, except for the specific region on the Arabic peninsula, we are fully back on track with strong growth.

Great. And then turning back to the GMV per top customer at Mytheresa, I think, declined 1.5% in the quarter, wondering if you could unpack that and should we expect that to return to growth in coming quarters?

I mean you have to really see that in connection with the massive increase of top customers. We really moved a significant cohort into this highest standard of our customer base. And as this sort of rejuvenate our top customer with a lot of new entrants, it is just mathematical that the average spend by moving so many new people into that higher status comes down a bit, I mean it's quite stable and therefore, quite remarkable that we move double-digit higher number into the top customer status and the average only declined slightly. And as we then sort of for better words, digest this massive increase in top customers, we will come back to the pattern that you have seen for many quarters now that the top base continues to spend more each quarter per capita. .

Your next question comes from the line of Blake Anderson with Jefferies.

I just wanted to ask one more to start off on the Middle East conflict. Have you seen any impact on the cost side from higher energy or low cost that we should be considering, such as shipping or logistics?

I mean, again, the rates and the quantity prices have been quickly fluctuating up and down. But yes, carriers, of course, pass on surcharges that particularly in air freight have been levied. So that is a direct measurable impact. But again, all of that with our business model has to be seen in context of -- on Mytheresa and NET-A-PORTER, MR PORTER of average basket size of EUR 850. So the value of the products we ship let us quite rapidly mitigate those surcharges. Medium-term longer effects, we cannot observe. But that was a specific effect as soon as oil and combustion fuels have gone up in price?

Perfect. That's helpful. And then I wanted to just drill down on the Mytheresa U.S. business. That continues to be really strong I know there's some industry maybe tailwinds that you're experiencing there from consolidation. But as we think about that 30% plus growth rate and you're looking out over the next 12 to 18 months, how are you ensuring and planning for growth there and trying to sustain the momentum?

Absolutely. The U.S. market, the U.S. consumer is and has been for quite some time, a growth engine for Mytheresa and is also a growth engine for the group. And Martin explicitly stated that marketing cost in the Q4 will actually go up as we invest as we see opportunities to engage with clients, we are gearing up for a fantastic event in June in L.A., hopefully, the outbreak of wildfires is not risking any of that. We are returning to the amines. We will have great engagement with -- on the Net-a-porter side, you heard about one of the only Big Sky event in Montana. We're investing. We think there is -- or we know and see and observe there is an audience that is reorientating itself in the retail landscape that is changing quite dramatically, and we want to capture as many parts and soles as possible at the moment. .

Got it. That's really helpful. And then on the luxury YNAP business, I wanted to ask, you talked about pulling back on promotions and trying to have higher full-price selling. How much more work to go is there? I know you mentioned that I think top customers are around 10% of total customers. Can you remind us your percentage of sales from top customers and where you're trying to take that over time? And kind of what are the impacts we should see over the next few quarters from that strategic shift?

I mean the good news is that we started this process last April, as we took over the company. And so we are coming closer to having been fully in charge for 12 months. And that for with Q4, a lot of that sort of promo detox will have been done. So that's the good news. We stepped into right away. We fundamentally think it's the wrong approach. And therefore, we immediately start stripping out those promotions and discounts. And as highlighted in the call by Martin, the significant increase in gross profit margin in this quarter, because we were actually lapping a highly promotional quarter last year, which was effective in the last quarter under previous management. .

In terms of the share, we absolutely see it as the right target to have the same share of top customer business. And if you look into our investor presentation, top customer share of total customers in terms of size was 9.7% for Mytheresa in that quarter that we just reported and 10% for -- sorry, was 9.7% for Mytheresa and 10% for Net-a-porter. So we are getting there. And the famous 4% making 40% ratio is absolutely something that we aspire to deliver also for NET-A-PORTER, MR PORTER.

Your next question comes from the line of Wendy Gao with CICC.

As we can see, the AOV, I think for all segments are going up, especially for the luxury and Mytheresa segments. So do you believe this is more driven by the increasing shares of top customers? Or is it more structural changes or any other regions with other reasons we should look forward?

Thank you for your question. There are multiple factors, as always, and the ones you mentioned are right on higher presence of top customers. They buy into the higher price points into the more valuable products. So that's one. But we have been quite successful over the last quarters building out our fine jewelry business. It's fastest-growing subcategory on both sides, actually, on NET-A-PORTER, MR PORTER on Mytheresa. We've added not just in the quarter we just reported Neska as a new fine jewelry brand.

And so of course, adding to the mix piece is around EUR 50,000, EUR 80,000 has an immediate impact on the average AOV. So the fact, as you mentioned, contribute, but I just wanted to add that also increasing share of fine jewelry contributes to the ongoing increase in AOV.

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

Greetings, and welcome to the LuxExperience Second Quarter of Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Today's call is being recorded, and we have allocated 1 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.

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 Kliger.

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.

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 ex YNAP already shows good results with strong improvements across all 3 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% to 9%. The Mytheresa business continues to outpace the industry, delivering double-digit growth and high profitability. NET-A-PORTER and MR 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 with 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 repossess 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 continuous building with physical events has again strongly paid off.

In Q2 of fiscal year 2026, we grew our net sales by plus 8.8% compared to Q2 of fiscal year 2025. In the United States, which is a key market for growth, net sales reached plus 22.9% in Q2 fiscal year '26 compared to Q2 fiscal year '25. 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 plus 7.3% in Q2 fiscal year '26.

Mytheresa's financial strength 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 plus 13.5% compared to the prior year period. Furthermore, the average spend per top customer in terms of GMV grew by a very strong plus 12.5% in Q2 fiscal year '26 versus Q2 fiscal year '25. The average order value for last 12 months for Mytheresa increased by a remarkable plus 12% to an outstanding EUR 824 in Q2 fiscal year '26, 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 '26.

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 '26, up from 78.3% in Q1 fiscal year '26, 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 '26, 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 prelaunch partner for the Studio Nicholson and Aaron Levine's collection for menswear. We also launched exclusive styles for Loewe's and Bottega Veneta pre-Spring '26 collections and exclusive runway looks from Moncler Grenoble fall/winter '25 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 customer 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. 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 skinwear 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 2 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 Claridges in London for an exclusive dinner honoring the Creative Director, Haider Ackermann. Noteworthy was also our 2-day mountain experience with Moncler Grenoble in Gstaad, featuring an afternoon tea aboard the iconic La Bella Pop Epoque train and intimate dinner and snow activities with lunch on the Eggli 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 3 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, Apres-ski culture and a Mytheresa Apres-ski pop-up bar. In New York, Mytheresa partnered with Hani's Bakery for an immersive holiday gift shop experience on Madison Avenue, inviting guests to step into a world where the nostalgia of festive suites met the sophistication of high fashion.

Finally, in Saint-Maurice, Switzerland, Mytheresa opened an immersive hotel-inspired space, offering guests a captivating experience for 4 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't-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 minus 10.8% for NET-A-PORTER and MR PORTER combined. Europe, excluding Germany, increased by plus 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 2 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 '26 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 '26 versus Q2 fiscal year '25. 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 '26, increasing by plus 1,200 basis points compared to Q2 fiscal year '25. 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 '26, 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 Blaney 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 Rabanne for the night as well as PORTER cover featuring Rabanne designer, Julien Dossena and Victoria Fawole. This fashion moment launched the party season and made it on to the cover of WWD.

NET-A-PORTER also unveiled an exclusive capsule with the role of seasonal items only available at NET-A-PORTER. Also 2 private seasonal digital pop-up shops were featured with Jura, 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 multichannel 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 and exclusive 40-piece capsule collection with Brunello Cucinelli also launched on MR PORTER. Further exclusive product launches included Gallery department, 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 Langmead and the actor, Billie Piper hosted a joint party upstairs at the Langan's, 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 Ways to Wear, Behind the Brand and 3 gifting video campaigns. MR PORTER also launched its winter campaigns, including Weekend the Way, the Great Outdoors and partywear. MR PORTER's Journal feature on musician and writer Josh Homme drove 20,000 visits in its first week, whilst 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 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 '26. 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 '26, net sales declined by minus 7.3% versus Q2 fiscal year '25 for YOOX, a clear improvement compared to the net sales decline in Q1 fiscal year '26 with minus 16.6%. In Europe, including Germany, a clear geographic focus going forward, net sales already increased by plus 13.9% compared to Q2 fiscal year '25. 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 plus 4.1% in Q2 fiscal year '26 versus Q2 fiscal year '25. The average order value last 12 months continued to increase by a remarkable plus 11.4% to EUR 255 in Q2 fiscal year '26. YOOX customer satisfaction measured by our internal NPS reached 50.2% in Q2 fiscal year '26, significantly up from 34.5% in Q1 fiscal year '26 and compared to 29.9% in Q2 fiscal year '25, 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 Milan'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' 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 '26 running from October to December '25. Just 8 months after the acquisition of YNAP, we already report top line growth on group level with net sales growing plus 1.1% reported and plus 5.7% on a constant currency basis.

In addition, we are already turning profitable on group level with an adjusted EBITDA margin of plus 2%. All 3 segments improved their 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 plus EUR 118.5 million in the quarter. All these underlines the success of our transformation plan and is fully in line with our expectations. And as a reminder, we are targeting EUR 4 billion in sales and an adjusted EBITDA margin of 7% to 9% medium term.

As planned, we expect to close the sale of THE OUTNET in the current quarter, and our off-price business is now fully focused on the YOOX turnaround. The sale of THE OUTNET will not have any effect on our segment and group reporting as it has already been classified as discontinued operations.

So let me first review LuxExperience's performance at group level. I will then walk you through the performance of our 3 segments, Luxury Mytheresa, Luxury NET-A-PORTER and 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 '26 and for the first time since the acquisition of YNAP 3 quarters ago, we are already reporting top line growth on group level. On group level, net sales grew plus 1.1% reported and plus 5.7% on a constant currency basis. On GMV, plus 0.2% reported in the quarter and plus 4.7% growth on a constant currency basis. This is a clear acceleration relative to Q4 with minus 5.3% year-over-year and Q1 with minus 4.3% year-over-year GMV decline.

In the first 6 months of fiscal year '26, 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 '26, the SG&A cost ratio decreased 270 basis points from 21.8% to now 19.1% in Q2 fiscal year '26. For the first time since the acquisition of YNAP, we achieved a positive adjusted EBITDA on group level with an adjusted EBITDA margin at plus 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 '26, operating cash burn was only at minus EUR 30 million. In Q3 of fiscal year '26, 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 '26, we expect operating cash burn to stay well below EUR 150 million, given fiscal year '26 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 2 years.

The group ended Q2 of fiscal '26 with cash and cash financial investments of in total EUR 543.6 million. Together with our nonutilized 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 confirm our medium-term targets of EUR 4 billion in net sales and an adjusted EBITDA margin of 7% to 9%.

Let's now review the performance of our Mytheresa business. During the second quarter of fiscal year '26, GMV grew by plus 9.9% to EUR 268.9 million compared to the prior year period. On a constant currency basis, GMV grew by plus 12.7% year-over-year. Net sales grew to EUR 242.7 million in the quarter, representing a plus 8.8% increase on a constant currency basis. The net sales growth is at plus 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 '25, 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 costs, the shipping and payment cost ratio decreased by 90 basis points from 8.5% to 7.6% compared to Q2 of fiscal year '25. 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 '26, the marketing cost ratio decreased by 70 basis points from 12.3% in Q2 of fiscal year '25 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 minus 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 '26. Just as a reminder, due to the seasonality of our business, our fiscal Q2 is always a very strong quarter.

For the first 6 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 minus 2.5% compared to previous year despite double-digit top line growth.

Let me now comment on the luxury NET-A-PORTER and MR PORTER segment in more detail. In the second quarter of our fiscal year '26, GMV only declined by minus 1.9% to EUR 290.7 million. This was a strong sequential recovery compared to the minus 10.8% GMV decline year-over-year in the preceding Q1 of fiscal year '26. On a constant currency basis, GMV even increased by plus 4.9% in the quarter.

Net sales were at EUR 277.1 million, a minus 1% decline year-over-year. Also at net sales level, a strong sequential recovery from the minus 10.8% net sales decline in the preceding Q1. On a constant currency basis, net sales grew plus 6% year-over-year in Q2 of fiscal year '26. The new leadership team is working on improving the current and upcoming seasons buying volumes and aligning the subsequent marketing strategy to reembark 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 '26 decreased to 46.1% due to onetime 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 reembarking 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 '26.

In sum, our comprehensive turnaround plan until fiscal year '28 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 minus 0.7%. Therefore, also on bottom line, a significant sequential improvement from the minus 6.9% adjusted EBITDA margin in the preceding Q1 of fiscal year '26. 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 NAP, MR P segment to achieve comparable profitability levels to the Mytheresa segment medium term with a targeted adjusted EBITDA margin of plus 7% to 9% medium term. Inventory levels at NAP, MR P are down minus 3.8% to previous year, and we will continue to enable top line growth at NAP, MR P 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 to serve, 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 minus 12.1% in Q2 year-over-year to EUR 125.3 million compared to minus 19.3% in Q1 year-over-year. On a constant currency basis, GMV only declined minus 9.4% in the quarter.

Net sales were also at EUR 125.3 million, a minus 7.5% decline year-over-year. Also at net sales level, strong sequential recovery from the minus 16.6% net sales decline in the preceding Q1. On a constant currency basis, net sales declined only by minus 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 U.S. duty rates, the shipping and payment cost ratio stayed mostly stable, only increasing 30 basis points from 14.5% in Q2 of fiscal year '25 to 14.8% in Q2 fiscal year '26.

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 '26 decreased by EUR 4.6 million or minus 12.1% compared to previous year Q2, if you included all the IT development costs. And this was achieved despite the stranded costs from the separation of THE OUTNET.

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. And 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 '26, the adjusted EBITDA margin improved significantly from minus 18.1% in Q1 of fiscal year '26 to now minus 6% in Q2 of fiscal year '26. With the execution of our defined transformation measures, we expect to return to adjusted EBITDA profitability of YOOX in 12 to 15 months and return to top line growth already in fiscal year '27. Inventory levels at YOOX are minus 8% to previous year.

Given our H1 of fiscal year '26 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 '26.

For the full fiscal year '26, we now expect GMV and net sales between EUR 2.5 billion to EUR 2.7 billion, previously EUR 2.4 billion to EUR 2.7 billion and an adjusted EBITDA margin of minus 1% to plus 1%, previously minus 2% to plus 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 '26. For the luxury business of NAP and MR P, we expect positive growth rates towards the end of the fiscal year and therefore, expect in some a low single-digit GMV decline for the full fiscal year '26.

For the off-price business of YOOX, we expect top line to further moderate through H2 of fiscal year '26 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 plus 7% to 9% and to return to 10% to 15% annual growth rates. We will continue our track record of diligently executing our plans and delivering what we target.

And with this, I hand over to Michael for his concluding remarks.

Thank you, Martin. We are extremely pleased with our second quarter of fiscal year 2026 earnings results. LuxExperience has delivered strong results and improvements across all 3 segments and is fully on track with its transformation plan targets, confirmed by the strong second quarter. The turnaround at ex 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.

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

[Operator Instructions] Your first question comes from the line of Oliver Chen with TD Cowen.

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 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 the -- 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, 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 and Mytheresa, we, of course, have good opportunities in U.S. Mytheresa has seized them, 25% growth in U.S. for Mytheresa in the second quarter in constant currency, even over 30%, so we see strength in U.S., and we believe it will continue, and we see good strength 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 historic numbers that we can continue to increase the full price share until we get back to sort of the normal that we have seen in -- before COVID. So there is still room to improve, and we expect to continue to improve.

And 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, pooled all photo studios in Nilan. 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 '27, but well on track, and that's why we confirm today our medium-term target of 7% to 9%.

And maybe for some of the guidance and shipping questions, Martin?

Yes. I'm 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 have to always have to compare Q1 and Q2, the weaker quarter and a 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 of 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 continuously -- continuing to increase the full price share and therefore, seeing improvements in the gross profit margin.

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?

I mean the overall revenue guidance is also triggered, I mean, by all 3 segments. So we will -- we saw in H1 at Mytheresa a plus 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.

NAP, MR P and Michael called it out, is driven by now improved buying volumes and 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-digit decline, but the sequential improvement that we see on top line really shows and now will continue at MR P.

And 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 a low-teens decline in net sales for the second half and for the overall fiscal year. So the top line development also mirrors the transformation plan and is fully in line with our expectations.

Your next question comes from the line of Matthew Boss with JPMorgan.

Congrats on a nice quarter. So Michael, with the seismic shift 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?

I mean, obviously, with its fine-tuned machine, Mytheresa is best positioned to take opportunity -- to take advantage of these opportunities. And as we highlighted in the investor 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 increased our share of wallet with existing customers. But NET-A-PORTER and MR PORTER are absolutely well positioned as well. They are 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 warehouse 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. And 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 U.S. in Q3, Q4. And it's all about presenting the best selection, presenting the best curation, having the product that customers are looking for.

And 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.

Great. And then, Martin, as a follow-up...

Your next question comes from the line of Grace Smalley with Morgan Stanley.

Sorry, was Matt cut off or...

Sorry, I didn't hear anything from Matt...

Yes, you had a follow-up question. Maybe you can bring it back and first to Morgan Stanley.

Your next question comes from the line of Grace Smalley with Morgan Stanley.

Hopefully, we can go back to Matt afterwards. Just 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 -- 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, would be interested to hear your thoughts.

Thank you, Grace. We believe we look at a very solid calendar year '26. 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 Loewe, 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 Feb. We already prelaunched 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.

Great. And then just a 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?

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 and raw materials. There's a bit of a pause there so that 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 4 weeks, whether we see also progress. The progress so far we have seen are really in the big houses, I must say.

Your next question comes from the line of Matthew Boss with JPMorgan.

Great. So Martin, for follow-up, I guess, could you elaborate on the progression of EBITDA margins into fiscal '27? Or what I wanted to know is relative to this year's flat base at the midpoint, what's the best way to model the time line for the transformation actions that you're taking across the portfolio as it relates to the bottom line?

Yes. So you're referring to already fiscal year '27. Obviously, we will give guidance then in the summer, in the last quarter, we always give further on the fiscal year. But, clear, I mean, you see the sequential improvement. It is again always nicely laid out by the 3 segments. It's driven by the 3 segments, which are completely, I mean, different in the current state and then all will align towards the medium-term target of EUR 4 billion in net sales and 7% to 9% adjusted EBITDA margin.

So we will see a sequential improvement in the second half of fiscal year '26, 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 '27, where we obviously target along our 5-year plan improvements. And this will obviously not be a linear function towards our medium-term targets of 7% to 9% in fiscal year '29/'30. But we will give you an update. We'll give an update on the fiscal year '27 expectations in our next quarter report here.

Maybe just one follow-up. When you cite medium term, is there any quantification like how long is medium in your view?

It's fiscal year ' 29 and fiscal year '30 is our medium term.

Your next question comes from the line of Anna Glaessgen with B. Riley Securities.

I guess I'd like to start near term, given the disruption at a luxury department store in the U.S. To what extent does guidance embed or do you expect some disruption as there could be some promotions coming from a competitor?

I mean it's hard to predict how the department store sector in the U.S. will unfold. As you know, there is 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. So promotions are very short term. And I hope that with whatever comes out of the proceeding a new entity that will follow that principle because otherwise, there is no sustainable profitable business model. We have proven that. And we had moments in our history where other competitors tried to find short-term gains.

We always sticked to our policies, and it has paid off. And 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. And you get -- what you see is what you get at Mytheresa, NET-A-PORTER, MR PORTER. It's inspiration. It's great service. It's curation, and that's what we focus on, and we see we can win with this.

Got it. 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?

Martin, you want to speak about inventories.

Yes, happy to speak to inventories. I called out the healthy inventory levels at Mytheresa with a good aging structure and stable, a bit decline despite double-digit growth. So that continues to be in great shape. NET-A-PORTER, MR PORTER is more working with the 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 Mytheresa and driven by past time decisions. At YOOX, also inventory down. So the logic of the inventory 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 '26 and now spring/summer '27.

Your next question comes from the line of Blake Anderson with Jefferies.

So I 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 earlier than you 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?

I mean the growth is -- mirrors very much the pattern that we have seen at Mytheresa. It starts from the top. So it sits with the big spenders. It's really, 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 Sota. There is 2/3 is ARV, so more expensive items, which is not higher prices. It's actually sort of picking items higher at the ladder and also 1/3 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, -- on full price selling is not only good for margin, full price selling is also good for the top line. And so 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.

And 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.

Great. And then I wanted to ask -- my follow-up would be on the operating cash flow target, 2-year time line. 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 2 years?

Yes. 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 minus EUR 30 million. And for the full fiscal year, I expect overall cash burn to be well below EUR 150 million, given fiscal year '26 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. But I mean, the transformation plan is a 2- to 3-year program. And we clearly guided on the overall cash burn for the whole plan for all years. And so we expect the cash burn to be still significant next year, but then will decrease. And I also called out that we expect to be cash breakeven from operational cash in 2 years. So it is a fiscal year '26.

The second half fiscal year '26 is a key cash outflow and fiscal year '27 will continue to be negative. But we are really happy with the flow, fully in line with our expectations. And so cash will not be the limiting factor for our transformation plan for returning to profitability and for reengaging on top line growth. And 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. So 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.

Greetings, and welcome to the LuxExperience First Quarter of Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Today's call is being recorded, and we have allocated 1 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.

Thank you, operator, and welcome, everyone, to the LuxExperience Investor Conference Call for the First Quarter of Fiscal Year 2026. With me today is our CEO, Michael Kliger.

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 investor.luxexperience.com.

I will now turn the call over to Michael.

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 first quarter of fiscal year 2026 of LuxExperience. As a group, we have now become the clear digital multi-brand leader for luxury and [indiscernible] worldwide. We are perfectly positioned to benefit and the expected further growth of the digital luxury market as well as from the ongoing consolidation process among the remaining players.

As explained last time, LuxExperience reports on the basis of the new segment reporting structure. The 3 segments are [indiscernible] as well as [indiscernible]. We are very pleased with the results of the first quarter. Across all 3 segments, we have delivered strong results and improvements. Mytheresa continues to demonstrate our unique ability to deliver strong growth and profitability despite ongoing macro headwinds. Metapote and Mr. Porter clearly show the first signs of the commercial turnaround, which will drive renewed growth and profitability for the 2 store brands after years of decline.

In the off-price segment, we anticipated a fundamental transformation by focusing on the healthy core, and I am pleased that we have been off to a fast start here also. We just announced that we have reached an agreement to sell the assets powering the outlet platform to the OgusLLC. Shareholders of the old Group LLC include Joseph Alere and Tesh Punjabi, CEO of Timeless Group of companies. Both are now experts in the off-price luxury fashion sector. The divestment of the outlet assets is a strategic step in line with our transformation plan announced in May 2025, which strengthens the operating model by reducing complexity.

We believe that we found a great new home for the outlet, and we can now fully focus on the transformation of the [indiscernible] business and the disentanglement of off-price from the luxury businesses in the back end. This will allow us to also accelerate the buildup of an efficient infrastructure platform for [indiscernible]. The closing of the transaction with the group as expected for Q1 of calendar year 2026, subject to certain closing conditions, including customary regulatory approvals and payment of the purchase price, which is subject to adjustments based on inventory levels at close.

As a result of the transaction, the off-price segment will purely refer to the business of [indiscernible] from now on, while we classify the outlet as discontinued operations as it is no longer considered part of our core financial performance. Let me now start by commenting on the [indiscernible] business. We are extremely pleased with the outstanding results in the first quarter of fiscal year 2026. The ongoing and accelerating momentum from the previous quarters demonstrates the strength of our business model, which focuses on word building, big spending luxury customers. In Q1 of fiscal year 2026, we grew our net sales by plus 12.2% compared to Q1 fiscal year '25.

In the United States, which is a key market for our business. Net sales growth reached plus 21.9% in Q1 fiscal year 2026 compared to Q1 fiscal year '25. The U.S. accounted for 23.1% of the net sales of our total business in the first quarter. In Europe, excluding Germany, we experienced again an excellent net sales growth of plus 14.1% in Q1 fiscal year 2026. Our clear focus on big spending world-building customers is the fundamental driver of our outstanding growth and financial strength at Mitel. In the first quarter of fiscal year '26, the top customer base of Natureza grew by plus 10.2% compared to the prior year period, significantly higher than in previous quarters.

Furthermore, the average spend per top customer insurance that GMV grew again by a very strong plus 58% in Q1 fiscal year '26 versus Q1 fiscal year '25. The average order value last 12 months for Mytheresa increased by a remarkable plus 10.7% to a record EUR 797 in Q1 fiscal year '26, 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 70 basis points in Q1 fiscal year '26. Our success with big spending world-building customers makes Materis a highly desired partner for luxury brands.

In the first quarter of fiscal year '26, we saw again, many high-impact campaigns and exclusive product launches, underlining mites, strong relationships with luxury brand. We launched exclusive styles from the evo Winter '25 runway collection for womenswear and menswear only available at Mitele as well as an exclusive womenswear max Mara cash leaps collection only available [indiscernible]. We were the exclusive prelaunch partner for Bonello Cucinelli for Winter '25 collections and Calvin Klein collections for Winter '25 collection for womenswear and menswear. We also launched exclusive womenswear styles from Moncler for Winter '25 collection as well as exclusive styles from [indiscernible] to Kashmir and [indiscernible] for Winter '25 collection.

In addition to creating desirability for our top customers with exclusive digital campaigns and product launches, we also create the viability and the sense of community for Mytheresa customers through unique money can buy physical experience. In the first quarter, we hosted various top customer events, including a private diamond master class and the tailored styling session is Jessica McCormick at her main fair townhouse in London. Together with Giochi, we celebrated Sara's debut runway collection with a curated cocktail reception, a private exhibition tour and an intimate dinner in Shanghai. He hosted a top customer cocktail in Madrid at the Roseth hotels and also help an exclusive Caperelli style suite there. To celebrate London, Milan and Paris Fashion Week, we invite the top customers to various shows to experience the magic of one-way firsthand.

Furthermore, we hosted Style sweep in London, the Hamptons, New Jersey, Singapore, Hong Kong, Warsaw, Frankfurt and Zurich presenting new collection in immersive curated environment. Highlights in the United States included intimate dinners, a star chefs and Aspen and Los Angeles. We hosted the New York Fashion Week after party at the legendary inducing with Calvin Klein collections. We partnered with label for an exclusive event at the glasshouse in Connecticut showcasing the brand's exclusive collection inspired by Joseph and [indiscernible], followed by an intimate dinner by chefs Radar and rehandling of France. Furthermore, we hosted an exclusive 2-day experience with Vena in Tula, featuring an on-stage dinner with a private opera performance at Teatro Radio and next day a launch at the famous Restaurante Delco.

In summary, we are extremely pleased with the [indiscernible] business in the first quarter of fiscal year and Martin will later show how the outstanding top line results translated into very strong bottom line. Let me now comment on the luxury segment comprised of [indiscernible]. The first quarter of fiscal year '26, we clearly saw the first signs of the commercial turnaround directly resulting from the execution of a strategy that focuses on luxury customers seeking editorial inspiration and brand discovery as well as a strict focus on full price selling.

In Q1 fiscal year '26, net sales declined as expected by minus 10.8% versus Q1 fiscal year '25 to [indiscernible] and Mr. Porter combined. United States declined by minus 10.7% in Europe, excluding the U.K. and Germany by minus 3.6% in terms of net sales in Q1 fiscal year '26 compared to Q1 fiscal year '25. The net sales decline is still driven by 2 little investors into attractive new merchandise a year ago for the current fall winter season. For the next spring/summer season, we can already see improved results.

While the overall net sales decline for [indiscernible] and Mr. Porter combined, the average spend in terms of GMV per EIP customer, the so-called extremely important people, customers grew by plus 4% in Q1 fiscal year '26 versus Q1 fiscal year '25. The average order value last 12 months increased by a remarkable plus 15.5% to EUR 836 for [indiscernible] and Mr. Porter combined in Q1 fiscal year '26.

Finally, the gross profit margin improved by 130 basis points in Q1 fiscal year '26 or Metapote and Mr. Porter combined, driven by a higher share of full-price sales amongst other factors. All these KPIs indicated an already much healthier business. In the first quarter of fiscal year '26, a renewed focus on high-impact campaigns and exclusive product launches was successfully initiated for Net-a-Porter and Mr. Porter is a clear focus on luxury customers, looking for editorial inspiration and brand discoveries.

Net-a-Porter launched an exclusive capsule with Jim -- so focused on key boot styles for fall winter '25. Net-a-Porter also launched an exclusive colorway of the iconic QA [indiscernible] which drove outstanding media engagement with audiences as well as an exclusive on-trend animal print really low ton back, all drove commercial success and increased brand awareness as the destination for fashion discovery. Mr. Porter launched a potline for Winter 25 collection with an exclusive prelaunch for EIP customers. Mr. Porter also launched 30 excludes a style from the [indiscernible] for Winter '25 collection; and Metapod and Mr. Porter both launched and [indiscernible] Zohr as a new brand, each with exclusive capsule collections.

Further new brand launches at Mr Porter include [indiscernible], Apri, Moras and Satoshi Nakamoto.

[indiscernible] also continued to drive outstanding customer engagements through unique editorial content. In September, the Oscar-nominated Actos, Emily Blunt was the Covestro Poulter magazine, marking the most engaged porter cover in the last 12 months. September also saw that our quarter present 310 of the incredible women pop card series celebrated the private event in London hosted by international model, actress and container are Dover Abo.

Mr Porter's general feature on Wollongongs drove 14,500 visits to the Journal section whilst its video attracted 390,000 views on [indiscernible]. It was featured in media outlets, including People Magazine and the Hollywood report. Partnering with such talent has proved effective in reaching new audiences, enhancing brand visibility and driving traffic to Mr. Potosi. This supported fill with active and enrolling modeling key design items has had 593,000 views.

[indiscernible] created a number of unique experiences with including a dinner in London celebrating 25 years of [indiscernible] to which top clients who have shopped with the brand for the last 25 years were invited. And to relate the new runway collections [indiscernible], hosted IP winners for its customers in all 4 fashion-widcities, New York, London, Milan and Paris. Mr. Porter hosted dinners in both New York and Hong Kong for high-profile VIP customers. It also invited to a dinner in London to celebrate its collaboration and exclusive capsule race. In attendance were press, influencers and VIP.

The share of the proceeds from the capsule collection were donated to the Mr. Porter Charity Health & Mind which runs in partnership with modem, which supports men's mental health. Bigstory and capsule collection had the highest click-through rate from the homepage to product seen this quarter. Already, you can see that the new leadership team at NetFort and Mr. Porter is driving the creation of much healthier and resilient business model to regain financial strength and growth. Martin will later comment on the progress achieved in improving the profitability of the [indiscernible] and Mr. Porter luxury second.

Lastly, let me comment on Yoox stand-alone performance in Q1 of year '26. We are pleased with the progress that we have achieved to separate the Yoox business from the luxury of wine. The sale of the ultimate assets will allow us to accelerate the process of separation further. To create a lean business model that is compatible with a lower margin and lower average order value off-price business we are focusing the Yoox business on the healthy core in terms of geography and operational fulfillment. The closure of the marketplace business, warehouses in BBA in Hong Kong as well as the optimization for higher tariff rates shipping to United States causes a deliberate net sales decline in the short term, but will allow to return to solid profitability.

In Q1 fiscal year '26, net sales declined as expected by minus 16.5% versus Q1 '25 for us. Europe, including Germany, increased by plus 1.7% in terms of net sales in Q1 year '26 compared to Q1 fiscal year '25. The overall net sales decline is, as explained, mainly driven by a renewed focus on a healthy core of the DX business. While the overall net sales decline for -- the top spending customer average spend in terms of GMV grew by plus 4.7% in Q1 fiscal year '26 versus Q1 fiscal year '25. The average order value last 12 months increased by a remarkable plus 17.8% to EUR 256 to Yoox in Q1 fiscal year '26.

Finally, the gross profit margin improved by 400 basis points in Q1 fiscal year '26 for Yoox compared to the prior year period, driven mostly by large FX and also a higher share of past price sales. All these KPIs indicate a clear focus from the healthy part of the customer base. As part of the transfer of the outset assets to the old group, LuxExperience will, for a certain period after closing, provide certain operational IT services all price the cost level to the buyer. Latest by the end of calendar year '26 all services and activities in relationship to the outlets will have stopped for LuxExperience, significantly reducing the complexity in the group.

And now after having reviewed the good commercial results and improvements across all businesses, I hand over to Martin to discuss the financial results in detail.

Thank you, Michael. As Michael outlined, we were able to successfully find a new home for the outlet. Just to highlight the financial implications. We met assets will be transferred at closing with an expected cash consideration at USD 30 million, depending on inventory levels at closing. Closing of the transaction is expected in the first quarter of calendar year '26. In line with IFRS requirements, we will report the outlet already in this Q1 fiscal year '26 as discontinued operations as it is no longer considered part of our core financial performance.

The off-price business is now fully focused on Yoox, and we adjusted our reporting accordingly. Therefore, with our fiscal Q1 reporting running from July to September '25, we will report quarterly results along our 3 business segments: Luxury midrise, luxury Matapote and Mr. Porter and off-price business of Yoox 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 give an update on guidance now excluding the outlet. Unless otherwise stated, all numbers refer to euro.

Let's first review the performance of our Mytheresa business. During the first quarter of fiscal year '26, GMV grew by 13.5% to EUR 245.9 million compared to the prior year period. Net sales also grew double digit to EUR 226.3 million, representing a plus 12.2% increase. We continue to take share in an overall stock market. In Q1 of fiscal year '26, Mytrisa's gross profit margin increased by 70 basis points to 44.6% and as compared to 43.9% in the prior year period.

Main driver was our continuous effort to increase the full price share. In Q1 of fiscal year '26, the shipping and payment cost ratio increased by 110 basis points to 14.6% as compared to 13.5% in the prior year quarter. The increase is mainly due to the new U.S. tariff situation. 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 costs, the shipping and payment cost ratio in relation to GMV decreased by 90 basis points from 8.8% to 7.9% in Q1 fiscal year '26. Main drivers of this improved cost ratio were higher AOVs and lower negotiated shipping fees based on increasing group volumes. With these measures, we limited the effect of increased U.S. custom duties in the quarter to 110 basis points increase in our shipping and payment cost ratio and mostly compensated to the increase with the above mentioned 70 basis points increase in our gross profit margin.

The net effect of U.S. customs and the combined view of the increased shipping and payment cost ratio and the increase in gross profit margin was therefore mostly compensated and overall, not significant. In Q1 of fiscal year '26, the marketing cost ratio decreased by 110 basis points to 10.4%. 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 is deemed effective. Also, the selling, general administrative SG&A cost ratio decreased by 110 basis points to 12.9% compared to the prior year quarter. SG&A expenses increased by 4.7% compared to the previous year quarter, and the cost ratio benefited from the strong top line increase.

Subsequently, the adjusted EBITDA margin expanded by 210 basis points during the quarter to 3.5% as compared to the 1.4% in the prior year period. Adjusted EBITDA grew by EUR 5 million to EUR 7.9 million in Q1 of fiscal year '26. Q1 profitability in the previous year was very low. And given the cost developments just mentioned, we expect profitability levels at Mytheresa in the remaining quarters in this fiscal year '26 transition year to be at previous year profitability levels. Inventory levels at Mytheresa are up 4% and compared to previous year despite double-digit growth.

Let me now comment on the Luxury [indiscernible] and Mr. Porter segment in more detail. In the first quarter, of our fiscal year '26. GMV and net sales decreased by minus 10.8% to EUR 224.5 million and EUR 212.3 million, respectively. The anticipated top line decrease was fully in line with our expectations and due to lower merchandise order volumes from previous year. The new leadership is working on adjusting upcoming seasons buying volumes and aligning subsequent marketing strategy to reembark on top line growth again.

We expect to see first signs on GMV growth in the second half of this fiscal year. The gross profit margin in Q1 increased by 130 basis points from 46.5% to 47.8%, with the increase influenced by a higher share of full price sales and onetime effects in the previous year. For focus of our transformation plan is to bring down the SG&A cost ratio. SG&A expenses in Q1 of fiscal year '26 decreased by minus EUR 4.2 million or minus 6.8% compared to the last quarter, which was Q4 of fiscal year '25, running from April to June '25. Compared to the first quarter of previous year, SG&A Expenses decreased by minus EUR 6.6 million or minus 9.7%, if you included IT development costs that were capitalized last year.

As this is the first quarter of fiscal year '26. We will see more significant effects throughout fiscal year '26 and fiscal year '27. With the top line decrease of minus 10.8% in GMV in the quarter, the SG&A cost ratio increased marginally by 30 basis points compared to the previous year quarter, including capitalized IT development costs in the previous year quarter. Overall, the SG&A cost ratio in the quarter is at 27.6% of GMV compared to 12.9% at Mytheresa. We will continue to bring down this more than 1,000 basis points difference with adjusting the operating model, the IT replatforming, corporate overhead cost savings and reembarking on top line growth.

Given the top line decrease of minus 10.8% GMV in the quarter, 9.3 million less gross profit was generated with the other cost lines in line with our expectations, the adjusted EBITDA margin in the quarter was at a negative minus 6.9% below the adjusted EBITDA level at Mytheresa. The new leadership teams at [indiscernible] and Mr. Porter are in the middle of refining and investing in our buying and marketing efforts to set [indiscernible] and Mr. Porter on a growth trajectory again, while focusing on profitability. With the execution of our transformation plan and bringing down the SG&A cost ratio, we expect the [indiscernible] segment to achieve comparable profitability levels to the Mytheresa segment with a targeted adjusted EBITDA margin of 7% to 9% medium term.

We expect [indiscernible] to breakeven on adjusted EBITDA margin level already in fiscal year '27. Inventory levels at [indiscernible] are down minus 8.8% to previous year, with a healthy old season share at targeted levels and in line with the situation at Mytheresa. Let me now review the financial performance of the off-price business of Yoox. Continuing the path of a more comprehensive restructuring effort at Yoox and with focus on profitable customer cohorts. GMV and net sales in Q1 of fiscal year 2016 declined by 19.3% and 16.5%, respectively, to EUR 118.6 million GMV and net sales in the quarter, also driven by the deliberate shutdown of the unprofitable Yoox's marketplace, which had a GMV of EUR 4.6 million in Q1 fiscal year '25. Yoox's gross profit margin increased by 400 basis points from 32.6% in the prior year period to 36.5%, mostly driven by previous year destocking initiatives. Our focus of our transformation plan is to bring down the SG&A cost ratio also at Yoox.

At Yoox, SG&A expenses in Q1 of fiscal year 2016 decreased by minus EUR 6.2 million or minus 15.5% versus Q1 of previous year, if you included all the IT development costs in previous year on a stand-alone basis. With the carve-out of the outlet from off-price and reporting it as discontinued operations, we excluded all P&L effects that were directly attributed to the outlet and will fall away subsequently. Certain cost elements in corporate and tech will not follow a with the sale of the outlet and therefore, increased the cost share for Yoox in the group. With reporting the outlet discontinued operations, 3.6 million SG&A expenses from the net were allocated to Yoox already in this quarter.

The outlet had net sales of EUR 41 million in Q1 of fiscal year '26. At Yoox, the SG&A cost ratio was at 28.6% of GMV. We will continue to bring down the SG&A cost ratio with significantly simplifying the operating model, subsequent IT downsizing, corporate overhead cost savings and reembarking on top line growth. During the first quarter of fiscal year '26, the adjusted EBITDA margin was at minus 18.1%, in line with expectations in our transformation plan. With the execution of our defined transformation measures, we expect to return to adjusted EBITDA profitability of Yoox in 15 to 21 months and return to top line growth already in fiscal year '27.

Inventory levels at Yoox are minus 13% to previous year, in line with our targeted inventory strategy at Yoox. Now that we have reviewed the performance of our individual segments, let's take a look at how these results translate into our group level financials for LuxExperience. In Q1 fiscal year 2016 group GMV amounted to EUR 588.9 million while group net sales were at $557.2 million. GMV net sales declined by minus 4.3% and minus 4.2%, respectively, as compared to illustrative levels in Q1 fiscal year '25 excluding the outlet. Adjusted EBITDA on group level stood at minus EUR 28.1 million with an adjusted EBITDA margin of minus 5%. Top and bottom line of the LuxExperience Group are at expected levels for Q1 of fiscal year '26, excluding the outlet.

At the end of Q1 fiscal year '26 and excluding the inventory of the outlet, group inventory stood at EUR 1.018 billion. Operating cash flow of the LuxExperience Group was at minus EUR 146.4 million, driven by phasing seasonal and onetime effects. Excluding the onetime effects, we had around minus EUR 40 million negative operating cash flow. Onetime effects relate to restructuring expenses, phasing of accounts payables and custom drawback receivables. Negative cash flow in the first quarter is typical due to seasonal inventory buildup. For the full fiscal year '26, we expect operating cash burn to stay well below EUR 200 million, given fiscal year '26 as a key transition year for our transformation plan. We are 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 2 to 2.5 years.

The group ended the fiscal year with a cash position of around EUR 460 million and additional access to revolving credit facilities of EUR 200 million, of which EUR 42.2 million were utilized end of Q1 fiscal year '26. LuxExperience has a strong balance sheet with EUR 1.7 billion of current assets, mostly inventories and cash, almost no bank debt and an equity ratio of 60%. The integration of the Vina finance team's information of all LuxExperience group structures has started early and are progressing very well.

Key activities included a new group-wide organization and governance setup an integrated finance consolidation and IFRS 16 to 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 setter. The statutory and group audits of fiscal year '25, under strict PCAOB guidelines were successful, and we filed our 20-F as planned on October 30, 2025. We are in an ideal position to execute our transformation plan to deliver sustainable growth and profitability, supported by our strategic initiatives across our segments.

With our continued success at Mytheresa. We have proven that we are the best execution team and global digital luxury. The new leadership teams at Antapata, Mr. Porter and Yoox, have begun their work. And at group level, we are in the midst of implementing the measures of our transformation plan. Given our agreement to sell the assets powering the outlet, would like to provide an updated guidance for fiscal year '26 that reflects the new structure of our LuxExperience Group. The new guidance takes into consideration the anticipated financial impact of the transaction and reconfirms our guidance for the other business and [indiscernible].

We remain committed on the full execution of the transformation plan, which includes operational adjustments, technology platform integration and organizational alignment. As fiscal year 2016 will be our key transition year. For fiscal year 2016, we expect Lux Experience GMV at around EUR 2.4 billion to EUR 2.7 billion and an adjusted EBITDA margin between minus 2% and plus 1%. We expect Mytheresa to grow mid- to high single digits in the full fiscal year. Matapote, Mr. Porter, will show growth in the second half of the fiscal year, but a decline by low single digits for the full fiscal year.

Yoox will continue to adjust the revenue base downwards, but at a lower extent in the second half of the fiscal year. Our medium-term targets remain unchanged. At adjusted EBITDA profitability at 7% to 9% and to return to 10% to 15% annual growth rates.

And with this, I hand over to Michael for his concluding remarks.

Thank you, Martin. We are very pleased with our first quarter of fiscal year '26 earnings results. The outstanding performance of Mytheresa demonstrates our proven ability to drive profitable growth in digital luxury and the clear signs of the commercial turnaround in [indiscernible] Mr Porter show that we are fully on track with our transformation plan. With the agreement to sell the assets at the Outnet, we have also found a tailored solution that allows us to accelerate the transformation at Yoox. .

LuxExperience is in the perfect position to benefit from the continued growth of digital luxury and the ongoing consolidation in the sector. We expect to become the one and only destination for luxury enthusiast worldwide. We will continue to generate enormous value for our customers, brand partners and shareholders. And with that, I ask the operator to open the line for your questions.

[Operator Instructions] Your first question comes from the line of Blake Anderson with Jefferies.

So wanted to ask on the acquisition. It looks like it's been almost 7 months now since you closed it. There are lots of moving pieces. I wanted to ask, what are the strongest signs that you think your plan is working so far and that it's on track? And what would be any areas, if any, that have surprised you?

Thank you, Blake. Indeed, we closed in April. So a few months into the overall work, we are well on track. As explained in our call -- we -- if you look at some of the quality KPIs of margin, of AOV, of spend per top customer -- we are well on track. And for the luxury [indiscernible] Mr. Porter, we believe and expect positive growth already next year in '26 calendar. So really good developments. We are really happy that we were able to bring a new leadership team so quickly at Mr. Porter and also at Yoox. The signed agreement to sell the assets of the outlet was a significant milestone. We have announced workforce reductions in multiple locations. So it's all well on track. And Martin explained that we already see the results of very early SG&A reductions.

I mean a lot of the activities that we are doing have, of course, lags before they can really take effect in the P&L. So we are very happy. We are not surprised. We knew what was not working. We knew what was working because we did a very extensive due diligence. And of course, in a quite unique position of truly understanding the business model of Netaporta and Mr. Porter and also very close to the off-season luxury business. So it looks very, very good. We explained in May that this is a multiyear exercise with continuous improvement. This is not front loaded, back-end loaded, we will continue to show quarter-by-quarter improvements. And this was only the first quarter.

Makes sense still very early. So I wanted to ask on the guidance. It sounds like there weren't really any changes there aside from the Outnet sale. Just wanted to confirm that and then see if there were any -- was any color you could provide on a quarterly basis kind of by segment there. And I think you said the Mytheresa segment was maybe mid- to high single-digit GMV growth, which would I think would imply a slowdown. So any more color on that segment as well, which has been really strong for you.

No, you're completely right, Blake. So there's a reconfirmation of the perspective and the guidance for the for the 2 segments, [indiscernible] Mr. Porter, and it is obviously an adjustment needed. If we take out the out net and report it as discontinued operations, that is around EUR 212 million of net sales for the full year that we expected. And therefore, we had to adjust that. You see that also we narrowed the range on top and bottom line. I mean we had on bottom line, minus 4% to plus 1% and now we narrowed it down.

So I think we are -- as a key success factor is to really start early and and really push the transformation plan, we are well on track to see the good movements. So yes, reconfirmation of the guidance, adjusting it for the outlet effect. On the Mytheresa guidance, mid- to high single digits. I mean, there's no specific callout. I mean, as we are seeing very strong support and great signs of growth throughout both luxury segments. But obviously, we want to be mindful in the overall situation of the market.

I mean it's always tough to predict. And therefore, it is -- this is in line with what we expect today in line with an overall soft market.

Your next question comes from the line of Oliver Chen with TD Cowen. There appears to be no audio from Oliver Chen side. Next question is from Cedric Norris with Morgan Stanley.

So I have 2, if that's okay. First, there is this idea that fashion trends follow a pendulum swinging from maximal and colorful style to more quiet luxury ones. The latest being more in favor over the recent past. We recently saw waves of fashion designers change doing their debut in some of the largest luxury houses. So having in mind that fashion trends are hard to predict. Could you perhaps elaborate on what you have seen in terms of consumer appetite or [indiscernible] and the overall interest for the luxury category. Have these recent creative directors changes generated more interest and if yes, for which brands? And then secondly, if you could share what you saw in terms of performance by category that would be helpful.

Happy to do so, Cedric. So you're absolutely right. We have come out of a fashion week cycle with lots of new designers. And at a very high level because each brand has its own story. There was a bit of movement to more bolder, more colorful, more minor femininity across many, many brands. We clearly see more buzz. We clearly see more interest. Most of these collections have not dropped it. So this is really February, March, April, where we will see how the appetite for consumers are by different masons. But we clearly have seen a sort of joined idea of many creative directors to move into a new swing, move out of quiet luxury.

But I always insist that the drivers of quiet luxury brands like Zenya, Bonello, Cucinelli, [indiscernible], they will continue to be successful. This is an additional side of fashion that hopefully will excite customers as we move into February, March, April when a lot of these shows and collections will become available.

In terms of what is driving the growth, this is, of course, very much the story of Mytheresa, the story of Netapote and Mr. Porter, it's clothing. It's ready to wear. This is where we see the nicest momentum. This is driven by a very diverse lifestyle of our clients. Vacation remains a big theme, but both summer and winter. And then there is 1 additional category that we always call out, which is the success of fine jewelry now also on digital. It's probably one of the later categories that have moved and we see good traction, both on [indiscernible] and on Mytheresa for fine jewelry in the neighborhood of 20,000, 50,000 pieces. So we are gradually moving up very nice price points, of course, not on jewelry, but real luxury products.

[Operator Instructions] Your next question comes from the line of Oliver Chen from TD Cowen.

This is Nicolas Sylvia on for Oliver Chen. I do believe some of my questions were answered already, but I did want to ask a little bit more on guidance. I know you mentioned that EBITDA margin sounds like was adjusted a tiny bit on the lower end, if I'm not mistaken. I was just wondering if you could provide any additional color on what you think the primary drivers are there, if there are any besides the sale of about [indiscernible]? And my second question is if you could just speak a little bit more on what you're seeing regionally.

Yes, maybe I'll take the first question on the guidance, yes, we adjusted upwards. So we had adjusted EBITDA margin for the group minus 4% to plus 1% previously and therefore, now guide towards minus 2 plus 1%. So if you take the midpoint, it's an improvement. Obviously, the -- as Michael outlined, it is the transformation plan that we are embarking on from a group level. And in addition, the work of the new leadership teams at the brands, we are all working on improving the profitability from the business side, from the back-end side and also then focusing on reembarking on growth.

But for us, and we outlined that in multiple last calls, the SG&A cost ratio was really the key element of improving the profitability. And it is quite noteworthy that already in Q1, so July, August, September, just a couple of months after closing, we were able to decrease SG&A costs by minus EUR 15 million, if you combine the 2 x [indiscernible] segments of the quarter. in comparison to the prior year quarter. So we are obviously front-loading a lot of pain, a lot of adjustments that we need to do and we will continue to do so. So this is the core element. And I also guided on growth, especially in [indiscernible] Mr. Porter already in the second half of this fiscal year to show growth. And this will obviously also help on the on a ratio logic that from a lower expense base to then have obviously profitability improvement on the whole group reembarking on the growth trajectory again. And it always helps to be the #1 worldwide to really push also on the growth side.

Yes. And let me talk about geography. We continue to see very good traction in the U.S. We highlighted in our script, that it is actually the fastest at accelerating geography. Europe, excluding Germany, very stable growth rates. So we are across all the segments happy with that, these 2 geographies. On the Yoox side, as we said, we are really focusing on the healthy core, which is Europe. So we intentionally drive business in Europe. .

Asia has stabilized, obviously at a low level. So we are really looking forward to continued growth in the short term in the U.S. and Europe. There may be upside opportunity now in China, but probably still early to say. And I just want to highlight that as a group, 31% of our business is now in the United States. So we feel very good about our U.S. business and our scale in the U.S. now.

Appears to be no further questions at this time. This does conclude today's call. Thank you for attending. You may now disconnect.

Greetings, and welcome to the Lux Experience Fourth Quarter and Full Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Today's call is being recorded, and we have allocated 1 hour for prepared remarks and Q&A. It is now my pleasure to introduce your host, Martin Beer, the Chief Financial Officer of Lux Experience. Thank you, sir. Please begin.

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 Kliger. 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 investor.luxexperience.com.

I will now turn the call over to Michael.

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 YOOX NET-A-PORTER on April 23. Under the new name Lux experience, we now operate the leading global digital multi-brand luxury LuxExperience operates a portfolio of some of the most distinguished store brands in digital luxury and creates communities for luxury and [indiscernible] worldwide with unique digital and physical experience. Mytheresa, Letarte and MR PORTER offer highly curated edits of the most prestigious luxury brands featuring womenswear, menswear, kidswear, fine jewelry and [indiscernible] as well as lifestyle products and the outlet are the leading destinations for multi-brand up-season online luxury shopping.

With the acquisition now complete, we will report going forward on the basis of a new segment reporting structure. The 3 segments are luxury Mytheresa, luxury [indiscernible] and MR PORTER as well as off-price, which is comprised of UX and the outlet.

As the transaction closed on April 23, the performance of the 2 new segments were mostly driven by the previous management, but 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 30, 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 operations functions. This relates to changes of the global warehouse footprint and fulfillment models.

The customer service provider landscape and 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, 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 YNAP 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 that. 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 EUR 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 1 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 strength of our business model, which focuses on [indiscernible] building, big spending luxury customers. In Q4 of fiscal year '25, we grew our net sales by plus 11.5% compared to Q4 fiscal year '24 and for the full fiscal year '25 by plus 8.9% compared to full fiscal year '24. This was an acceleration of the results of the third quarter and we closed the year fully in line with our given guidance. In the United States, the Mytheresa business generated a net sales growth of plus 6.4% in Q4 fiscal year '25, compared to Q4 fiscal year '24.

For the full fiscal year, the U.S. accounted for 22.6% of net sales of our total business. In Europe, excluding Germany, we experienced an excellent net sales growth with plus 19.4% in Q4 fiscal year '25 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 plus 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 plus 16.1% in Q4 fiscal year '25 versus Q4 fiscal year '24 and plus 15.9% for the full fiscal year '25.

As a consequence of our successful strategy at Mytheresa, our top customers accounted for 3.8% of all customers and numbers, but for 42.6% in terms of total GMV in fiscal year 2025. The average order value, last 12 months from Mytheresa increased by a remarkable plus 10% to an outstanding 773 in Q4 fiscal year '25, demonstrating the success of our focus on selling fully priced, high-end luxury products to top customers, including our successful expansion of our fine jewelry offer. 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 kids wear orders and branded hangers as well as garment bags for high-value ready-to-wear items.

The continued focus of Mytheresa on selling full price is also evident with the again improved gross profit margin growing by 90 basis points in Q4 fiscal year '25. 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 '25, showing our consistently outstanding customer satisfaction.

Our success with big spending, [indiscernible] customers makes Mytheresa a highly desired partner for luxury brands. The fourth quarter fiscal year '25, we saw again many high-impact campaigns and exclusive product launches, underlying also Mytheresa strong relationships with luxury brands. We launched the exclusive Dolce & Gabbana, Tania capsule collection for womenswear and kids were only available at Mytheresa. We launched also high summer exclusive captures with Gucci, Versace, [indiscernible], [indiscernible] and [indiscernible]. for womenswear, all only available at Mytheresa. We were the exclusive prelaunch partner for the Alia Archetype collection, Valentino's ETF capsule collection as well as the rows Fall/Winter '25 collection for womenswear and Menswear. We also launched exclusive womenswear bags and shoe styles from Bottega Venetas prefall '25 collection and exclusive womenswear and menswear styles from products, new selling 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 customers through unique money can buy physical experience. 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 [indiscernible] at the private apartment of the Creative Director, Gianoni. We celebrated a devolved pop-up at the Mytheresa store in Munich. We invited top customers to a dinner and shopping experience with Prada at the Round Tree hotels in [indiscernible]. Further highlights in the United States included a private behind the sea viewing of the Boston Bales rehearsal of Romeo and Julie and a private tour at the freeze art exhibition at Hutsards hosted in collaboration with Stone Ireland.

In Shanghai, we created an unforgettable experience around Sara, [indiscernible] Runway collection together with [ Givinchi ]. In the spirit of being a community for luxury enthusiasts, we host a 2-day [indiscernible] experience in [indiscernible] with Dolce & Gabbana in attendance of [indiscernible] a Deutsche. We invited guests to a dinner at the famous Sun Domini Capella and a [indiscernible] market experience at Tamina central market. Another highlight was our 2-day room experience with ACOs, including a private dinner at the [indiscernible] attended by Edgardo Osorio Founder and Creative Director of AquaSure.

We also hosted a Mediterranian escape and EBSA is iso, including a boat tour and pool party. Finally, we invited clients to Naples to attend a private fashion show with Quito and learn about the sectorial 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 of Lux experience 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, both NET-A-PORTER and 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 of NET-A-PORTER and MR PORTER. Of course, reduced cost of operation will also be [indiscernible]. In Q4 fiscal year '25, net sales declined by minus 8.9% versus Q4 fiscal year '24 and by minus 10.9% for the full fiscal year '25 compared to full fiscal year '24 for NET-A-PORTER and MR PORTER combined. The United States with minus 8% and Europe, excluding the U.K. and Germany with minus 6.5% saw similar decreases in terms of GAV in Q4 fiscal year '25 compared to Q4 fiscal year '24. While the overall top line declined, the average order value last 12 months increased by plus 14.5% to EUR 811 for NET-A-PORTER and MR PORTER combined in Q4 fiscal year '25. The gross profit margin remained almost stable in Q4 fiscal year '25 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 new CEO, Heather Kaminetsky, who significantly drove Mytheresa's U.S. growth since 2021, new Chief Buying and Merchandising Officer, [indiscernible]; and new Chief Brand and Customer Officer, [indiscernible] are engineering, the successful return of NET-A-PORTER global appeal and customer passion based on editorial authority and luxury fashion discovery.

No less pivotal is the return of Co-Founder, Tobi Baton as CEO, to MR PORTER. Under his leadership, Jeremy Langmead as new Brand Director, Daniel Todd as Buying Director and Cassandra Baclad 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 the lack of marketing spend in the past as well as too little investments into the buying of attractive new merchandise. The new leadership team in place and the 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 [indiscernible] and the outlet. Both store brands have suffered the most from a lack of dedicated resources, marketing spend as well as low investments in attractive new merchandise. Furthermore, the off-price business 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 stocked.

In Q4 fiscal year '25, net sales declined by minus 17.4% for [indiscernible] and the outlet combined. For the full fiscal year 2025, the decline was minus 13.2% compared to full fiscal year '24. The United States with minus 21.8% and Europe, excluding the U.K. and Germany with minus 15.6%, saw similar negative developments in terms of GMV for [indiscernible] and the outlet for Q4 fiscal year '25 compared to Q4 fiscal year '24. As for the other businesses, the average order value last 12 months for [indiscernible] and the outlet combined, increased by plus 17.4% to EUR 292.

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 YOOX 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 [indiscernible]. Separate leadership teams have been put in place and confirmed for [indiscernible] and the outlet, dedicated brand and marketing function separate and 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 a lean operating model required for the off-price business.

Select operational and administrative structures are being consolidated and workforce reductions have been announced. The group remains fully committed to Italy for us and the United Kingdom for the outlet as their respective headquarters. All these measures will help us to regain growth and financial strength after years of decline for the off-price business.

And now I hand over to Martin to discuss the financial results in detail.

Thank you, Michael. As explained by Michael, we will report across 3 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 [indiscernible] and the outlet. 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, '25 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 '26 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 plus 11.5% to EUR 248.9 million. For the full fiscal year, net sales grew by 8.9% to EUR 916.1 million, in line with our guidance. GMV grew by plus 11.1% in the quarter to EUR 265.9 million and to EUR 988.5 million in the full fiscal year, a growth of plus 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 '25 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 AOV and lower return rates.

In the full fiscal year '25, 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 '25, 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 '25, the adjusted EBITDA margin expanded by 180 basis points from 4.7% to now 6.5%. For the full fiscal year '25, the adjusted EBITDA margin increased by 180 basis points to 4.9% with an adjusted EBITDA of EUR 44.6 million, in line with our given guidance.

Key drivers where 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 '25, Mytheresa had a positive operating cash flow, plus EUR 17.6 million. For the full fiscal year, Mytheresa also had a positive operating cash flow of plus EUR 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 '25, 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 3 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 minus 8.9% and minus 10.9% LTM on an illustrative basis. As Michael outlined, this development is driven by 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 plus 14.5% from EUR 708 to EUR 811.

The adjusted gross profit margin in Q4 was mostly stable at around 51%, both in line with the strategic refocus on improving customer quality. Adjusted EBITDA profitability at Net MR PORTER is below Mytheresa level at minus 1.1% adjusted EBITDA margin in the quarter compared to plus 6.5% at Mytheresa. On an LTM basis, the net MR PORTER adjusted EBITDA margin was at minus 0.7% compared to the plus 4.9% at Mytheresa. As outlined in our May investor presentation, the key focus area for NAP and MR.P rests in the SG&A cost ratio.

In Q4, the SG&E cost ratio at NAP, MR.P 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 '24, NAP, MR.P had tech people CapEx of EUR 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 NAP, MR.P in the quarter, compared 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 NAP, MR.P Q4 and LTM performance were in line with our expectations and the transformation plan. We also provided elucitive previous year numbers of NAP, MR.P, 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 2 segments. With the new leadership team, NAP and Mr. P 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, Mr.P 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 UC marketplace model, this led to a deliberate net sales reduction of minus 17.4% to EUR 159.1 million. On an LTM basis, net sales decreased by 13.2% to EUR 792.8 million. The AOV on an LTM basis, increased by plus 17.4% to EUR 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.P segment, the SG&A cost ratio now includes the IT development costs into operating expenses instead of CapEx. In fiscal year '24, off-price had tech people CapEx of EUR 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 state, the off-price segment experienced an adjusted EBITDA margin in Q4 of minus 17.9% and minus 12.1% on an LTM basis, in line with our expectations and the long-term plan, 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 2 new segments, NAP, MR. P and off-price had combined a negative operating and investing cash flow of minus EUR 46.6 million. For the full fiscal year '25, those 2 segments had an operating and investing cash flow of minus EUR 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 net working capital buildup. Fiscal year '26 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 ellucitive numbers, it is reflected in the contribution of the acquired businesses as if they were a part of the group for the full periods presented, but excluding acquisition accounting and OFS and Sanmar businesses that are being wound down. For the full fiscal year '25 ended June 30, reported group GMV amounted to EUR 1.3 billion. On an illustrative basis, group GMV -- the full fiscal year '25 was EUR 2.9 billion, decreasing from EUR 3.1 billion in the previous 12-month period, representing an overall decrease of minus 6.3%.

Reported group net sales amounted to EUR 1.3 billion for the full fiscal year '25. On an illustrative basis, net sales were EUR 2.8 billion compared to EUR 2.9 billion in the comparable period, resulting in a decrease of minus 5.9%. Reported group adjusted EBITDA for the full fiscal year '25 amounted to plus EUR 44.2 million and an adjusted EBITDA margin of 3.5%. This higher reported group adjusted EBITDA in comparison to elucative numbers is mostly driven by effects from acquisition accounting.

On an illucitive basis, group adjusted EBITDA was minus EUR 15.3 million in Q4 of fiscal year '25 and minus EUR 58.7 million for the full fiscal year '25. The adjusted EBITDA margin was minus 2.3% in Q4 and minus 2.1% for the full fiscal year. At the end, of the full fiscal year '25, reported group inventory stood at EUR 1.020 billion with net working capital at EUR 814.4 million. Reported group operating cash flow for the fiscal year was minus EUR 30.6 million. On an illustrative basis, including all 3 segments, operating and investing cash flow for the last 12 months was minus EUR 2.3 million, driven by significantly reduced inventory intake at NAP, MR. P and off-price. The group ended the fiscal year with a cash position of EUR 63.6 million and additional access to an undrawn revolving credit facility of EUR 179.8 million.

LuxExperience has a strong balance sheet with EUR 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 '26 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. NAP, MR.P will still need fiscal year '26 to readjust its buying and marketing strategy and will, therefore, still slightly decline in GMV. Off-price in fiscal year '26 will continue the restructuring of its operating and business model. We, therefore, expect GMV at off-price to continue to decrease considerably. In sum and in fiscal year '26, LuxExperience at group level is expected to have a GMV at around EUR 2.5 billion to EUR 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, in fiscal year '26 being a transition year, we expect in fiscal year '26, comparable profitability levels to fiscal year '25.

In sum, LuxExperience at group level is expected to report an adjusted EBITDA margin between minus 4% and plus 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 NAP, MR.P 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 in formation of all LuxExperience group structures have started early and we are well underway. Key activities included a new group-wide organization and governance set up an integrated finance consolidation and IRFS 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 set up. The statutory and group audits for fiscal year '25 under strict PCOB 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 with a EUR 555 million cash injection of Bridgeman at closing. At the end of June 2025, and LuxExperience had a total availability liquidity of EUR 784 million, including cash at hand of EUR 604 million and no bank debt. just a small utilization of our revolver of EUR 20.2 million. We expect a turnaround to require funds in total of no more than EUR 350 million to EUR 450 million and we expect to report positive operating cash flow for the group in 2 to 2.5 years. The setup of LuxExperience with its 3 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 EUR 4 billion revenues, with adjusted EBITDA of around EUR 320 million, as 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 multiyear growth at CAGRs well above 12%.

And with this, I hand over to Michael for his concluding remarks.

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, 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 brands. We managed to have a very fast start and have already made significant changes to the RAP structure, processes and infrastructure since completion of the acquisition in April. We will leverage the scale and scope of the newly formed group efficiencies and value creation across the business segments. By building a community for luxury and [indiscernible] worldwide and creating desirability through digital and physical experiences. We will continue to generate enormous value to our customers brand partners and shareholders.

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

[Operator Instructions] Your first question comes from the line of Oliver Chen with TD Cowen.

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? And 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 road map for timing of what we should expect there, given it's a nice opportunity and some of it's within your control. And then 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.

And finally, as you articulated the guidance on the EUR 2.5 billion to EUR 2.9 billion, it would 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.

Thank you Oliver, for this 1 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. And we do expect continued strong growth in U.S. We're all aware that things are quite fickle nowadays.

So this is all based on what we know today, but there is continued growth and continued margin improvement for Mytheresa definitely definitely possible. On the SG&A road map, I think also based on the May presentation, the elements are clear. It's in the operations, it's in the corporate functions in the technology -- it's in the data leverage. A lot of it is under our control as you rightly put all of us. We are moving very fast in operation. And so this will definitely show the faster than first results. Corporate also, we are going with a fine home to all SG&A costs, technology. This is the biggest part of savings, but this is the 1 that definitely takes 2 to 2.5 years. And maybe for the 2 last questions, I hand over to Martin on customs and guidance.

Oliver, happy to answer on the custom side. I mean we -- what we currently see is that the indirect customers effect on the customer sentiment is containable. So we see a continued strong growth of Mytheresa all other business. So the overall effect of U.S. customers 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. And sorry, what was the second question?

Regionally, as you think about the growth rates and how are you thinking about the U.S. relative to Europe? And any comments or thoughts on what you're seeing in Asia in terms of the model going forward, geographic dynamics.

Yes. I mean maybe a start with the last aspect. In our guidance growth -- there is nothing like unexpected super growth in Asia modeled in or built in. So we continue to see what everybody sees that Asia, especially China, is still is still weak. As you know, our base is very small. So we don't -- so China is for us rather an auction for further growth once the situation improves. But in the guidance, nothing is built in there. And as Michael called out, I mean, the regional growth avenues are quite vast for us.

So 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. And we are able to grow in all regions, no matter what the situation is there. So 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 Alex experience in all regions.

[Operator Instructions] we have a follow-up question from the line of Oliver Chen.

Hi, Oliver. I 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.

Congrats on all the [indiscernible] progress so far and 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? And then I'm wondering on quarterly cadence, can you provide maybe any quarter-to-date trends you've seen in any shaping of the year.

Yes. I mean if you look at the quarterly guidance, I mean, as you know, as you well know, the quarters are mostly driven by the seasonality of the business. So with Q2 and Q4 being stronger quarters in Q1 and fiscal Q3 being weaker quarters. So this season cadence will continue. And on the overall guidance, obviously, given given that we're in the midst of the restructuring of 2 segments and seeing the overall situation in the market also with other brands. we want to be conservatively prudent. And therefore, we have guided for a large spread of the adjusted EBITDA margin. And therefore, the lower end is then driven by a more conservative approach of looking at the overall market development that obviously stay still a bit uncertain on multiple fronts.

[Operator Instructions] we have a follow-up question from Oliver Chen. Oliver, please ensure your line is unmuted.

I 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 road map on both of those opportunities? It looks like they're definitely impacting the margin?

Well, as you know, there is a significant lead time in terms of changing assortment, improving the buy. So we have a strong new buying director in place. He is in the market. So the fall/winter '26 is the assortment that is now being bought. And so this kicks in early deliveries in May of next year. So the performance of the coming fiscal year is still very much influenced by Spring/Summer '26 that outside of the main selections has already been bought. But there are many other opportunities on the marketing side in terms of customer acquisition, 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.

So merchandise 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. This will kick in and you will already see impact in that -- 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? And then as we look at the designer landscape, you have 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 ladder luxury?

Yes. On your first part, I think, yes, we have seen further steps in the consolidation of the sector. I still refer to it or the sort of perfect example of industry curve that after boom and some weaker demand seasons, there is consolidation, and I continue to believe, and I think this also drives some of our numbers. this consolidation helps to get to a healthier industry to reduction in promotional activities of different layers. It's for sure that we have a much more balanced inventory to demand equation at the moment in place.

So 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. And to your second part, you're absolutely right. I mean we are really at the pivotal moment at many houses, new designers -- we have seen some third debuts to name [indiscernible] the Nuclear Director, Gucci, which brought a lot of new attention to the brand. We will have further new designers at Bottega on Saturday with Louis Trotta. We will have a new designer at Versace presenting on Friday. And we believe there's a huge level of opportunity in there. There will be a lot of attention garnered by press by influence my ambassador.

So 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. And so we are -- we're 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 behind us if we believe there is a strong trend 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? [indiscernible] has been exciting at Gucci as well. It's 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 remark. 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, but sentiment has been improving. I mean, I refer back to the strong results in the last quarter in Europe for Mitaresa. We continue to see good growth and acceleration in the demand in the United States. In Asia, from a very low level. There are improvements visible.

So current trends are positive at different sort of levels of strength. But again, 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 brand in the industry, even with the negative trend of recent years. It's still a top 5 luxury brand. And so a new designer, bringing in a lot of creativity and creating quite a lot of buzz in the last 2 days is very positive. Again, this is never a one-season game. This is establishing new codes, building on the existing codes of the brand. So great start. And without a great start, you can't have a continuation, but a great start alone is, of course, also not enough.

And final, on the off-price the vision, 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. And what are the harder parts of that business and it's 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? And 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 2 luxury segments and that segment. But still, -- it is retail and still, we firmly believe that the strict application of the principles are focusing on the customer, understanding what he or she really desires, servicing them well. And of course, being ruble. And it's not so much that these 2 businesses spend without any understanding of their cost structure. They were sitting on a cost structure that was not engineered for off-price.

So it's really what we stressed often the separation of the infrastructure from the luxury to provide them an infrastructure that fits there -- gross profit margin and price in off-season is lower by definition of that business model. And so 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 and MR PORTER luxury set.

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

Good morning. Thank you, everyone, for being here. So I'll just read out a quick disclaimer. So we're required to make certain disclosures in public appearances about Goldman Sachs' relationship with companies that we discuss. The disclosures relate to investment banking relationships, compensation received, or 1% or more ownership. We're prepared to read aloud disclosures for any issuer upon request. However, these disclosures are available in our most recent reports available to you as clients on our firm portals.

Please also note that LuxExperience is not covered by Goldman Sachs and will not provide investment views or opinions concerning the company. And as the company's fourth quarter financial results have not yet been publicly reported, will not be discussing any specific financial figures, performance metrics or forward-looking statements related to this period. Any information provided is as of the latest published numbers on May 14.

We'll just play a quick video to introduce you to Mytheresa. Thank you.

So maybe I'll start by introducing Martin. So we're delighted to have you here today. Thank you very much. A very warm welcome from us. So maybe we can kick things off.

It's great to be here.

Yes. Thank you. So we'll kick things off. Maybe you can discuss the current state of the broader luxury market and the consumer environment. Like given your industry experience, how would you describe the consumer behavior and what has surprised you the most so far in 2025?

I mean as David said this morning, I mean the customer is not a uniform beast. For us, being a truly global operator, the customer can be segmented in multiple ways. But I mean our focus is really on the high end, on the top customer. And we now make 4% of our customers -- 4% of our customers make 40% of our revenues.

So really focused on the high end, on the big spenders. And they have a, I mean, a very good sentiment. So they are not so much influenced by what we talk like aspirational customer weakness. So it's -- we see a very stable trend.

And then the other aspect is the global reach. So if you look at globally, we operate in 130 countries, there are always regions that are really bullish and very successful. I mean if you talk about Southern Europe, Spain, Italy, very strong. U.S. is still, I mean, very strong for us as we in the past quarters have grown double digits.

So it's -- overall, the customer sentiment, luxury, very positive. You know that luxury, the online luxury part, we operate in a market that is growing 10% to 12% per year. And the focus on the high end, the top customer, shields us also from the more price-sensitive, [ calmer ] middle and lower part of the customer segments.

Okay. And so what would you say has surprised you the most this year? Is it that the consumer has remained quite strong despite, I would say, the overall volatility, or maybe the U.S. surprised you?

Exactly. I mean the overall stability of the customer, especially on the top customer, is quite apparent. There are no really big surprises. I mean obviously, the market is from multiple views in a shakeout. So you see a lot of competitors struggling, of LuxExperience, of us, which is great. I mean we are in the #1 position, we are the #1 global digital luxury operator, which is great to be in a position. And some -- you heard the news, some competitors are really struggling on that end.

The overall luxury market is really a highly attractive, mostly price-insensitive market. And there is an ongoing polarization in the market. So that is also, surprisingly, that it still continues. A lot of brands are struggling, having double-digit or single-digit revenue decline. But other brands are really performing successfully, they're growing. They're growing single digit, double digits.

So it is a very special situation on the brand side, on the competitor side. And for us, it's an ideal situation because we are almost like a luxury ETF. So you're not investing in one luxury brand with all the risks and downside, but we have a balanced portfolio of 250 brands. So we can grow, and have grown, with the more successful brands.

And we also operate regionally very broad, in 130 countries, so we can grow in regions that are performing. I don't need to have certain resources on the ground. I don't, for some brands, say, okay, I have stores in China, 30% of my business is China. I don't have that fixation on resources and grow -- and need to grow in certain regions. I can be very flexible. And that's a great position.

Okay. And just maybe following up on the brand partners, what have you seen in terms of pricing so far in 2025?

I mean pricing strategies, I mean, has been long talked about on the luxury industry, that some brands have overly pushed the pricing. I mean there are a couple of brands that, for the last 3 to 5 years, have increased prices by 40%. And oftentimes -- and now in the shakeout, it becomes clear -- it becomes apparent that price is not matching the value proposition in the view of a customer of the brand perception. And therefore, that's why those brands are suffering.

I don't see any brands coming back with their prices. And it is, anyhow for us, difficult to speak about price because 70% of what we sell is new, has not been sold before. So we're not so much on a bag and shoe level, which -- where you clearly can differentiate prices.

So the overall market still remains, in my view, very price inelastic. But it is not so much looking at the prices of the certain brands, but always looking at the price/value of certain brand perception.

That is why certain brands are also suffering, because the brand perception does not qualify for the price anymore. And so they're suffering. And that's why also, and you know from the top brands, there are 15 designer changes that are now ongoing.

And so the brands have to recalibrate and rethink: what does this brand stand for? How do I engage more on newness, on freshness, on really bringing a fashion aspect into it? To enable the brand then to be sought after and really be talked about, and then increase the brand value.

And that's why a lot of brands are changing the brand designers, which also for LuxExperience will be a great way to go because, obviously, with those designer changes, you oftentimes would want to expand your target group. You want to talk to -- maybe to other targets, to other customer groups that not so much have been exposed to this brand on the demand side. And therefore, a multi-brand partner is the best to expose the brand to a broader audience.

So we expect in the next 12 to 18 months much more freshness, fashion, newness with the brands. And therefore, getting a bit away from the focus of what is always called quiet luxury on the more stable and quality focused brands.

Okay. Thank you very much. I think that might be a good moment to show the quick introduction video on LuxExperience.

[Presentation]

Thank you. So I think that is a great opportunity to turn to your recent acquisition of YNAP and the formation of LuxExperience. So can you talk about the plan on how to seamlessly integrate the diverse brand portfolio while maintaining the distinct identities as well as the different customer propositions?

Exactly. And this is the core plan, to keep the brands separate, to keep the brands distinct. Because we looked at the customer exposure there from [ a normal ] customer, top customer side. And the brand -- and the customer overlap between the brand is just 10%.

So the customer sees those brands completely different. They -- for the customer have a different go-to-market, different tonality. I mean NET-A-PORTER and Mytheresa, if you look at the differences, I mean, NET-A-PORTER has a significantly higher number of brands, has more up-and-coming brands, gives younger brands a chance, where Mytheresa really focuses more on the established brands, has the excellent top customer events.

So those brands are unique and, obviously, have a very strong customer heritage and strong connects with real big fans. And that's why for us, it is key in this acquisition to keep the brands separate. So they will operate with separate buying teams, separate marketing teams, merchandising, to really capture the strength and also enable them that the brands reembark on the growth trajectory again.

But obviously, in the back end, there are other synergies. We will replatform the NET-A-PORTER IT stack and bring Mytheresa IT in. We will consolidate on the operational model, on the IT model, and to reap all the classic benefits in the back end also. I mean obviously, we all talk to the same DHL, AMEX, PayPals of the world. And operating a much bigger group then enables you to capture a lot of synergies.

But on the front end, on the stores, on the commercial aspect, we are clear believers that those stores need to keep their identity and need to operate separately.

Okay. Yes, I think that's very clear. Maybe if we can turn to the competitive environment for Mytheresa and for LuxExperience. So I think you just mentioned that some of your competitors have had harder times recently. So what would you define as your core competitive advantages that can ensure that you keep a sustained market leadership and differentiation? I guess particularly when you're trying to retain these high-value luxury consumers?

Yes. No, it's a very important point. I mean if I compare the situation of today to a year ago or 2 years ago, the overall market situation for us has significantly improved because competition is so weak or has fallen away. And we all know about the players. So it is -- we are, and this is the global retail industry, we are the #1, we are the only global operating digital luxury multi-brand operator there is. We are the best operator, we're the #1. So it's an ideal position.

So we have proven that we are the significant player, the successful player. We, especially at Mytheresa, have guided for this fiscal year growth and also increased profitability, which is core. And we want to obviously continue on that path in operating the best LuxExperience Group ever. So we are really excited looking ahead and we'll rebuild on the strength of -- that we have shown in the past, yes.

And maybe following up on the stat that you gave earlier, you mentioned that 4% of your consumers account for about 40% of sales. Is that true throughout the different brands that you own? Or would you say one of them caters to more higher-end consumers than the others?

It's very typical for luxury. And the 4%, the 40% is Mytheresa. On NET-A-PORTER and the other brands, it's very similar. It's also obviously a highly concentrated top customer focus and a very comparable share on the focus on the high-end customers.

And obviously building on the strength of a wardrobe builder, attracting those customers that come back and back and back, which is a key source of differentiation and a key component of the secret sauce of the success is to have a loyal customer base that comes back and back without immediate discount need or immediate marketing spend, but builds on the success of the recurring customer.

And that's why we have at Mytheresa a customer that is coming for the second year. We have a 100% net sales retention for customers that are coming for the second year or longer. So every year, I build on an existing layer of an existing customer, which really enables also the core profitability. This is the one side.

And on the brand side, I mean, we have one of the most highest AOV in the industry, which is a key, and are really successful and focusing on full-price sale. So the share of products that we sell at full price is very important and is a key determining factor on top line and also on gross profit margin.

And what would you say is the share of revenue coming from recurring consumers versus new consumers?

We don't disclose that this year. But I mean, as I said, every year, the share of recurring customer revenues is increasing, and with an increasing top customer share. And this is obviously what everybody aspires, but we succeeded, is to build and maintain this very important relationship with the top customer, to shield us from aspirational customer weakness or from certain fluctuations in the industry. And this is really key.

Okay. Maybe if you can start speaking a bit about your midterm guidance. So you aim to be a global luxury force. What would you say are the key financial targets or milestones that you've set for the combined entity over the next 3 to 5 years? And what are the strategies that you will implement to drive that profitability and growth across the newly integrated business?

Yes. I mean that's the core question and this is also the focus why we're here, because we really built this new entity with the acquisition, LuxExperience, from the start about 3 billion. And clearly, at the end of this, we are very confident that, in the medium term, we will form a global LuxExperience to become a EUR 4 billion company with adjusted EBITDA margins of 7% to 9% that we've shown in the past and experienced in the past, and so have a clear adjusted EBITDA profile also in absolute terms that justifies adding significant shareholder value and also for all stakeholders.

So it's a -- this is the key target and the key setup of what we do at LuxExperience. Obviously, we are doing this from a great outset. We talked about very weak competition. Mytheresa, as the acquirer, as the core being the best executor in the industry, highest Net Promoter Score.

And we operate LuxExperience from a very sound position. So we -- LuxExperience is debt free. And if you compare that to other competitors that are highly indebted, it's a very strong -- gives us a very strong balance sheet, which gives us a very strong outset.

And we have a very -- and this transformation plan to come to the 4 billion and the profitability is already fully funded, with extra leeway on the things that lie ahead. So cash position with the acquisition was a cash injection of EUR 555 million. Debt-free, sound operator being the #1 worldwide, with the experience of a very strong growth trajectory in the past and looking and wanting to implement that in the future. And the adjusted EBITDA profitability 7% to 9% that we had 3 years ago. So it's a great outset. It's a great setup to engage at LuxExperience.

And you asked about the levers, how do we get there? And the core elements are twofold. First is the gross profit margin. That is key. And with a very weak competition, we have in the last quarters at Mytheresa, shown increased gross profit margin, increased profitability, and we guided to a continuous increase.

And we see the same at NET-A-PORTER and MR PORTER and YOOX. So the core focus is on improving and focusing on the core customer quality cohorts, improving gross profit margin. And then when we made that also clear in the -- in our investor presentation that we had with the acquisition in May, another core element of increased profitability for the LuxExperience Group is in the SG&A cost ratio. And at YNAP, the SG&A cost ratio is almost double the ratio from Mytheresa. And SG&A always sounds so abstract, what is in there? The core elements are IT setup, operational setup and overhead cost.

And therefore, the transformation plan that we defined early on with the acquisition focuses on those elements: on replatforming the IT, NET-A-PORTER, using the Mytheresa IT platform, significantly reducing the complexity at the YOOX legacy IT. And also in line, reducing the operational setup at both entities where we talk about warehouses, studio production, customer care to really focus the whole entity on what brings value and how do we operate in a most efficient way.

Because I mean, luxury e-commerce is a tough business to be in. You see that at competitors who are struggling. And so the magic is all in execution and really getting it done and enabling a very lean, efficient and focused and setup. And that's why with continuous improving in the gross profit margin and with a significant reduction in the SG&A cost ratio, this is then enabling to regain the path on profitability.

And on the top level side, we have shown in the past 5, 6 years Mytheresa operating on a CAGR, double-digit growth CAGR. So we want to come back to also significantly growing the LuxExperience and being the #1 operator with weak competition, and operating in a market, and we haven't talked about this -- the online luxury market is a market that is set to grow 8% to 10% per year. So I have the ideal prerequisite for implementing this transformation plan, operating in an industry, high price elasticity, market grows 8% to 10%, being the #1 global operator with a proven track record and having a fully funded transformation plan with all the right ingredients. So we are really looking ahead on this transformation and are really excited for this new journey.

Okay, yes. And in terms of the growth drivers, maybe if I can continue on this. Are there specific markets, I mean, geographically speaking, where you wish to expand more or that are the key drivers? Or are you quite agnostic as to where sales happen?

Yes, we talked about a bit on the -- being an ETF. So also on the growth drivers, I have the right ingredients, and I can grow with the brands that are up and coming, and that fuel certain growth. And I can grow in regions that are -- I mean, obviously, there are certain regions, I mean like the Middle East, Singapore, Australia, Canada, U.K. is very strong for us, we talked about Southern Europe. So there are always regions, operating in 130 regions, that are set for high growth.

So for -- on the growth trajectory, I can expand my market share. And the market share is, if we look at certain regional markets, between 2% to 5%, just. So I'm the #1, I'm the market leader globally, only with a market share of 2% to 5% and operating in a growing market. So I can grow just capturing the growth potential of the market, taking market share and also growing in certain regions where, for example, in the U.S., Mytheresa is underpenetrated. We have 22% revenue share in the U.S. The overall share of the U.S. in the luxury market is 35%.

So we can all -- and we haven't talked about China. China is still a difficult market. It's still a bit spotty. But we have operations set up, we have a Chinese entity, we have a team there. We're doing a lot of top customer events also with local top Chinese brands. So for us, China is a great option, because our China share is very small. And so if this market rebounds, we can fully benefit also from regaining of the China share.

So regional, and we haven't talked about the categories. I mean, obviously, the core category is womenswear for us, where our market share is very low and we can grow significantly. I mean in the last quarters, we even have grown double digits in the U.S., which is highly penetrated by U.S. players.

But we also want to grow menswear, kidswear. We initiated fine jewelry and want to grow that category as well. We have Live tableware. So you can imagine there's a lot of other luxury categories that LuxExperience will and can expand on to capture share of wallet of the target group. The target group is highly attractive for that.

And speaking about this category diversification, can you comment a bit on the innovative customer experiences that you provide to your customers?

I mean the -- there's always innovation in the customer approach, but the core element of why customers are coming to LuxExperience and experience is in everything what we do. So it is the curation of -- I mean Mytheresa, NET-A-PORTER, the other brands are not a bundle of products on a website. It is a curated offer. It is a selected offer. It's about inspiration.

So the core element, what we are working on and what we are focusing on, want to improving every day is a selection, is a curation, is how we partner with brands. Every week there's something new on the website. There's a collaboration with the brand. So the customer comes back and back it back because she wants to be inspired and wants to find selection. So this is a core element of what we do.

And the second key element of the LuxExperience competitive advantage is being the best operator. So really seamless operation because the customers at that level, they're highly demanding. So if you get those 2 elements right, yes, you can -- and this is not the focus of today's discussion, experiment on artificial intelligence, AI and so on. But it is key that you get your core strengths in line and really align that to the needs of the top customers.

Okay. And thank you for all your insights. Maybe wrapping up my questions, if we can conclude on: what are your expectations for the environment in the second half of '25 and in 2026 for luxury spending? Do you expect it to be the same, better, worse?

I mean we have now experienced -- a couple of years, 2.5 years, of a bit slower luxury market with polarization. So a slower luxury market doesn't mean that everybody is low. There are a lot of highly strong performing brands.

And so for the second half, I do expect first signs of the designer changes on certain brands being more fresh, more innovative. And I also expect on the second half an improvement in the overall customer sentiment on this luxury segment. So obviously, the main -- if you talk about the big bulk of customer sentiment in the luxury industry, this will not significantly change, in my view. But on the high end, paired with this changing attractiveness of our top luxury brands, I clearly see an upside on customer sentiment for this group.

Okay. No, I think that's very interesting. And in terms of -- if you can speak about the -- you mentioned that some brands have been performing much better than others. Would you say that's due to the creation of products, the price points? What is your view on this?

I mean why is the brand more successful than others? It is always a combination of a lot of things. But it is -- you have to get your product quality in line with the value. So price/value and the brand perception has to be in sync.

And for a lot of brands that are suffering right now, this is not in sync anymore. So from the customer perspective, they think that the price points do not match the value proposition of the brands. And therefore, it is always a mix for a brand to be up there, to be one of the most successful brands.

It is not so much on price points, because the price elasticity in the industry is still very low. But the customer really focuses even more on the value. What do I get? What do I really get? And if the market is booming, everybody is benefiting. And right now, it's a clear polarization of brands, and this will continue.

Thank you very much. I think this is a great way to conclude this fireside chat. Thank you very much for coming here.

Thank you for having me. Thank you.

Thank you.