Latest news with #LuxExperience
Fashion Network
16-05-2025
- Business
- Fashion Network
LuxExperience says Mytheresa saw continuing sales growth in Q3
LuxExperience has reported Q3 results for its legacy Mytheresa business and said it saw a 'solid' net sales rise of almost 4% plus 'continued strong adjusted EBITDA profitability at a 4% margin'. Q3 of FY25 covers the three months to the end of March and the company said it saw the growth despite a tough market environment. Highlights included what it called an 'outstanding' Average Order Value, continued gross margin expansion, falling return rates, record-high NPS and 'strong profitability', although it remains loss-making on a reported net income basis. LuxExperience CEO Michael Kliger hailed 'the strength of the Mytheresa business model. Solid GMV growth, higher top customer spend, continued product margin expansion and strong profitability [that] show the health and resilience of the Mytheresa business despite macro headwinds'. He also said the numbers 'underline the fantastic prospects for the recently acquired Yoox Net-A-Porter business. We continue to demonstrate our ability to execute well and achieve strong results under macro uncertainties where other players fail. Combined we will create the leader in global digital, multi-brand luxury with strong profitability and growth.' So let's dive into the details. Mytheresa saw a net sales increase of 3.8% year-on-year to €242.5 million, although in the year to date, net sales rose 8% so the latest quarter did see a slowdown. GMV growth was 3.8% to €261.3 million and Average Order Value increased by 8.8% to €753. The gross profit margin of 44.8% was an increase of 140 BPs year-on-year. Adjusted EBITDA of €9.3 million was up from €8.9 million a year ago and the adjusted EBITDA margin edged up to 3.9% from 3.8%, although again, this lagged the full year so far that was at 4.3%. Of course, we can't ignore the fact that the company remains loss-making with the loss this time being €5.5 million for the quarter, wider than the €3.3 million of Q3 a year earlier. And for the year to date the loss was €33.7 million, more than the €21.3 million loss of the previous year to date. But the company also said that adjusted net income this time was positive at €5.4 million compared to €3.8 million 12 months earlier and for the year to date the adjusted net profit figure was €21.4 million, much more than the €3.2 million of the previous ninemonth period. Adjusting items included major one-off costs linked to closing a distribution centre, professional fees and legal expenses. Returning to the highlights of the latest period, the company said it saw an expansion of its partnership with Prada to global distribution rights including the US; a successful two-week immersive Aspen Après-Ski experience in cooperation with Bemelmans in Aspen, with strong acquisition of new high-net-worth customers; the launch of exclusive capsule collections and pre-launches in collaboration with Loewe, Etro, Balenciaga, Manolo Blahnik, Saint Laurent, Bottega Veneta, Valentino Garavani, Toteme, Tod's and many more; impactful Top Customer events around the globe and 'money-can't buy' experiences in partnership with luxury brands; and 'outstanding customer satisfaction" with a Net Promoter Score of 86% in Q3 FY25. But the company still clearly faces challenges. As mentioned, it remains loss-making on a reported basis and also said that 'given the recent uncertainties on tariffs and their effects on customer sentiment', it's cautious on sales and GMV expectations. 'We now expect for GMV and net sales growth the lower end of our given guidance of 7% to 13% for the full fiscal year ending June 30 2025 for the legacy Mytheresa standalone business,' it said. But it added: 'Given our continuous focus on profitability we confirm our guidance for adjusted EBITDA margin in the range of 3% and 5%'. As for YNAP, its completed acquisition in Q4 is expected to add another €300 million-€350 million net sales and an adjusted EBITDA loss of between €20 million and €30 million added to the legacy Mytheresa standalone business's FY25 numbers. But it's 'very excited for the medium- and long-term outlook of the combined business. With our proven ability to execute and to show strong results we confirm our medium-term outlook for the combined business' to achieve around €4 billion net sales per year and an adjusted EBITDA margin of 7%-9%. Starting with the Q4 results, the company will be reporting in three operating segments: Luxury - Mytheresa (that is, the legacy Mytheresa standalone business); Luxury – NAP & MRP (Net-A-Porter and Mr Porter); and Off-Price (the Yoox and The Outnet businesses).
Business of Fashion
15-05-2025
- Business
- Business of Fashion
Yoox Net-a-Porter's New Owner Reveals Plan for Profitability
Now that Richemont has offloaded the online luxury group Yoox Net-a-Porter, the e-tailers' loss-making will be Mytheresa's problem. In an investor call on Thursday, LuxExperience, the new luxury group that combines Mytheresa and Yoox Net-a-Porter, said that Net-a-Porter and Mr Porter's combined net sales dropped 11 percent to €1.2 billion ($1.3 billion) in 2024 and is on track to fall another 11 percent to €1 billion in 2025. Their off-price companions, Yoox and The Outnet, saw their combined sales decreased 19 percent to €957 million in 2024; the e-tailers' revenues are expected to decline another 14 percent to $826 million this year. That contrasts with Mytheresa's projected 7 percent growth to around €900 million in 2025. The numbers were revealed as LuxExperience announced more details of its post-merger plans to return the embattled companies to growth. Net-a-Porter and Mr Porter, as one luxury unit, and Yoox and The Outnet, as a separate off-price division, are targeting sales increases of more than 10 percent in the medium-to-long term. LuxExperience didn't disclose a target year. LuxExperience plans to drive growth for the overall group through more streamlined operations. Mytheresa, Net-a-Porter and Mr Porter, for example, will share an e-commerce platform and may use one another's warehouses in specific regions. That plan, which will take two to three years to implement, will cost as much as €250 million but will help push LuxExperience toward €4 billion in annual revenue and as much as 9 percent adjusted earnings before interests, taxes, depreciation and amortisation by 2030. Learn more: How Mytheresa Can Make Its YNAP Deal Work The German e-tailer's deal to acquire the London-based luxury site, and become a global luxury e-commerce giant, is only as viable as its ability to make the whole enterprise profitable. BoF unpacks what it could take to get there.
Yahoo
15-05-2025
- Business
- Yahoo
Mytheresa Bolsters Management Through Promotions
Mytheresa, the luxury multibrand digital platform that is part of the newly formed LuxExperience group, has reshaped its leadership through a series of promotions. Simon Tweed has been promoted to chief commercial officer, responsible for drivingMytheresa's success and overall commercial strategy across all categories, encompassing buying and merchandising. Tweed was vice president of merchandise planning and sustainability management. He joined Mytheresa as interim manager retail and merchandising in 2016, and earlier held management positions at Selfridges, Joy and Yoox. More from WWD Mytheresa Finalizes Yoox Net-a-porter Acquisition, Will Begin Trading as 'LUXE' on May 1 Mytheresa Becomes Prada's Global E-commerce Partner EXCLUSIVE: Mytheresa Dives Into the Mediterranean Sea With Pucci Dominik Lass has been promoted to chief growth and site management officer, adding performance marketing to his current remit. He has been overseeing shop experience, onsite management and project management as vice president. Before joining Mytheresa in 2015, he held management positions at Planet Sports and Peek & Cloppenburg. 'I am excited about the promotion of Simon and Dominik, two outstanding leaders who have already made significant contributions to the success of Mytheresa. Together with the existing team, they will drive Mytheresa's growth within the newly formed LuxExperience group,' Michael Kliger, chief executive officer of Mytheresa, said in a statement Thursday. The company also said Tiffany Hsu continues as chief buying officer leading the buying team and its strategies across all categories, and takes on the additional role of group fashion ventures officer of LuxExperience, where she will mentor and drive partnerships with new, emerging fashion brands. A spokesman for Mytheresa said the executive changes reflect assignments recently made at LuxExperience, the holding company that includes Mytheresa and Yoox Net-a-porter. The spokesman also said the changes revealed Thursday did not involve any departures. Tweed succeeds Richard Johnson, who became chief business officer at LuxExperience, and Lass succeeds Gareth Locke, who became chief data and digital officer at LuxExperience. Mytheresa's deal to acquire Yoox Net-a-porter was finalized last month, at which point the new, more diversified entity was renamed LuxExperience. The company's ticker on the New York Stock Exchange changed to 'LUXE.' The Munich-based Mytheresa also indicated that Amber Pepper, chief marketing and customer officer; Julian Paul, chief creative officer, and Michael Kliger, group CEO of LuxExperience, all continue in their current roles. Kliger also continues to serve as CEO of the Mytheresa brand 'for the time being,' the company noted. LuxExperience operates the Mytheresa, Net-a-porter and Mr Porter luxury website brands as well as Yoox and The Outnet off-price sites. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Mytheresa Reports Q3 Sales and Profitability Gains
Mytheresa, the luxury multibrand digital platform that is now part of the newly formed LuxExperience group, posted another solid quarter marked by sales and profitability gains. On Wednesday, Mytheresa reported that adjusted net income, which excludes legal and consulting costs related to the acquisition of Yoox Net-a-porter and share-based compensation, rose to 5.4 million euros in the third quarter ended March 31. That's up from the 3.8 million euros reported in the year-ago quarter. More from WWD Mytheresa Bolsters Management Through Promotions Mytheresa Finalizes Yoox Net-a-porter Acquisition, Will Begin Trading as 'LUXE' on May 1 Mytheresa Becomes Prada's Global E-commerce Partner Mytheresa had a net loss of 5.5 million euros in the third quarter versus 3.3 million euros in the year-ago quarter. Net sales at the Munich-based Mytheresa grew 3.8 percent to 242.5 million euros in the third quarter compared to 233.6 million euros in the year-ago quarter. Europe, with an 8 percent third-quarter sales gain, was Mytheresa's strongest region during the quarter. 'We feel it was a strong, solid quarter, given the current environment. Growth was good but we are used to more. Profitability remains strong,' Michael Kliger, chief executive officer and managing director of LuxExperience, told WWD. Kliger also still runs the Mytheresa business. Like other fashion and luxury brands, Mytheresa and its parent LuxExperience are navigating fast-moving changes in the stock market, consumer spending patterns and international trade policies. 'The biggest challenge is this constant change,' Kliger said. 'It's difficult for both manufacturers and consumers. We would welcome some stability. Regardless of which way tariffs go, stability is what we need.' He said Mytheresa has some exposure to China, where some European products sold by Mytheresa are made, but he added that compared to other sectors, such as toys, 'we are not as heavily exposed.' Bestselling categories last quarter at Mytheresa were resort/beachwear and fine jewelry. Among the bestselling designer brands were The Row, Alaïa, Brunello Cucinelli and Dolce & Gabbana, the company indicated. Also, sales with Mytheresa's top-spending customers globally rose 17.9 percent, Kliger noted. On April 23, LuxExperience — formerly Mytheresa — closed its deal to acquire Yoox Net-a-porter from Richemont, which provided LuxExperience with 555 million euros, no debt and a 100 million-euro credit facility for Yoox Net-a-porter, in exchange for 33 percent of Mytheresa shares. LuxExperience will host a 'strategic update' conference call at 8 a.m. EST Thursday to provide more details on the new group's structure, its key strategic initiatives, financial details, as well as management's plans and direction moving forward. Beginning in the fourth quarter of fiscal year 2025, LuxExperience will be reporting in three operatingsegments: Mytheresa, Net-a-porter and Mr Porter, and Yoox and The Outnet. The fourth quarter of fiscal 2025 is expected to add another 300 million to 350 million euros in net sales and an adjusted EBITDA loss of 20 million to 30 million euros to the Mytheresa stand-alone business fiscal 2025 numbers, ending on June 30. Last week, Mytheresa reshaped its leadership through a series of promotions that came in the aftermath of appointments made at LuxExperience. Simon Tweed was promoted to chief commercial officer, and Dominik Lass was promoted to chief growth and site management officer. Tweed succeeded Richard Johnson, who became chief business officer at LuxExperience, and Lass succeeded Gareth Locke, who became chief data and digital officer at LuxExperience. Also, Tiffany Hsu, who continues as chief buying officer leading the buying team and its strategies across all categories, took on the additional role of group fashion ventures officer of LuxExperience. 'We wanted to be very fast to bringing in the right new leadership,' Kliger said. At other levels, he added, 'There will be more changes at the different brands.' LuxExperience, he said, is 'absolutely unique as the largest, multifaceted luxury group in digital.' Going forward, 'We need to invest more on the front end,' meaning what the customer sees and experiences, 'and save more on the back end,' Kliger said. '[Financially] we are very well prepared. The house is clean and in order.' In other third-quarter results at Mytheresa, gross merchandise value grew 3.8 percent in the third quarter to 261.3 million euros, compared to 251.9 million euros in the prior-year period. The average order value increased by 8.8 percent to 753 euros in the last 12 months of fiscal year 2025 versus 692 euros during the same period of fiscal year 2024. The company confirmed its full fiscal 2025 guidance at Mytheresa, but added that given the recent uncertainties over tariffs and their effects on customer sentiment, GMV and net sales are now projected to fall at the lower end of the forecasted range of 7 percent to 13 percent. Adjusted EBITDA margin is seen in the range of 3 percent and 5 percent. 'The results of the third quarter demonstrate once again the strength of the Mytheresa business model,' Kliger said in his prepared statement. 'Solid GMV growth, higher top customer spend, continued product margin expansion and strong profitability show the health and resilience of the Mytheresa business despite macro headwinds. 'The strong results of the Mytheresa business model underline the fantastic prospects for the recently acquired Yoox Net-a-porter business,' Kliger said. 'We continue to demonstrate our ability to execute well and achieve strong results under macro uncertainties where other players fail. Combined we will create the leader in global digital, multibrand luxury with strong profitability and growth. Our medium-term ambition is to reach around 4 billion euros in net sales per year and 7 percent to 9 percent in adjusted EBITDA margin.' Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
Yahoo
15-05-2025
- Business
- Yahoo
What's Ahead for LuxExperience? CEO Michael Kliger Spells Out Transformation and Financial Goals
LuxExperience, the umbrella company holding both Mytheresa and recently acquired Yoox Net-a-porter, is forecasting a 'dramatic shift' in the size and profitability of the combined entity. 'We have a bold transformation plan already in place,' said Michael Kliger, managing director and chief executive officer, during the Munich-based company's first investor conference call since the acquisition was finalized in April. More from WWD Mytheresa Reports Q3 Sales and Profitability Gains Mytheresa Bolsters Management Through Promotions Mytheresa Finalizes Yoox Net-a-porter Acquisition, Will Begin Trading as 'LUXE' on May 1 Medium-term goals for LuxExperience calls for annual net sales of 4 billion euros by fiscal year 2030, from the current 3 billion; adjusted earnings before interest, taxes, depreciation and amortization margin of 7 to 9 percent, and adjusted EBITDA exceeding 300 million euros. For fiscal '26 and fiscal '27, the company sees 1 to 4 percent adjusted EBITDA, as it invests for growth. LuxExperience expects to spend 200 million to 250 million euros on restructuring over the next two to three years including technology, corporate office and operations integrations and consolidations expected to yield 150 million euros in annual expense savings. The goal, Kliger said, is 'to achieve an optimal business model for the two segments,' referring to LuxExperience's luxury and off-price businesses. Investors are still waiting to see how the businesses come together and sent share of the company down 4.8 percent to $9.63 in midday trading on Thursday. Kliger said that LuxExperience will migrate its Net-a-porter and Mr Porter luxury websites to the technology infrastructure used for the Mytheresa luxury website — a combination expected to yield a 70 percent tech cost reduction over the next two or three years. Separately, the company will 'streamline and simplify' the tech infrastructure that the Yoox and The Outnet off-price websites use. The off-price side of LuxExperience will have its own backend operations 'because they're operating a lower [average order value] and a lower margin business,' Kliger said. The new entity also expects 30 percent lower cost per customer care contact and 40 percent lower cost per photo production. On April 23, LuxExperience — formerly Mytheresa — closed its deal to acquire Yoox Net-a-porter from Richemont, which provided LuxExperience with 555 million euros, no debt and a 100 million-euro credit facility, in exchange for 33 percent of Mytheresa shares. Beginning in the fourth quarter of fiscal year 2025, LuxExperience will be reporting in three operating segments: Mytheresa, Net-a-porter and Mr Porter as well as Yoox and The Outnet off-price businesses. On Wednesday, Mytheresa alone reported that adjusted third-quarter net income rose to 5.4 million euros from 3.8 million euros a year earlier, a measure that factors out acquisition costs. Net sales grew 3.8 percent to 242.5 million euros. With the takeover of YNAP, LuxExperience has a database of 4 million customers. 'This is the richest database in the world for luxury shoppers, and thus we can create the best and deepest insight in how luxury shoppers shop,' Kliger said. 'It will allow us to drive personalization, use AI models that we already have today for product recommendations across the different brands, improve our relevance, improve brand performance.' He also said LuxExperience's 'improved proposition makes us even more attractive than today for brands to partner with us. But we clearly identified opportunities for cost savings by combining the data platforms and the data analytical tools, and then on corporate functions, we do see synergy. We believe and see that we can combine many functions in the backend and with administrative functions that serve the whole group, and thus reduce the cost base.' Kliger, emphasizing the company's potential over the next few years, told investors that LuxExperience has 'an outstanding market opportunity from the continuing growth of digital, unique, valuable assets in terms of brands, a global footprint with unprecedented reach, and most important, a high value customer base.' He stressed the importance of having differentiated offerings across the portfolio's brands and that they are being managed by different teams. 'Everything that drives the attractiveness and desirability of these different brands to customers will be separate,' Kliger said. 'We've also clearly identified the best talent for our central functions to deliver synergies and cost efficiency, on technology, on operation, on data, on group commercial, on HR, and we have appointed the teams that drive to drive the transformation, all announced and in place. And we have already put the next level in place…but there will be more [changes] coming in the next couple of weeks.' He said the luxury industry is predicted to grow from $360 billion to $480 billion over the next six years, with the digital luxury market growing from $70 billion to $150 billion. 'Predictions are very hard to nowadays, but if it's 130 billion or 160 billion, it doesn't matter.' At the core of LuxExperience is a mission to inspire customers. 'Inspiration seekers are higher-spending, high frequency luxury customers,' Kliger said. Emphasizing just how the LuxExperience brands differentiate, he characterized Mytheresa as focused on timeless, high-end luxury, and Net-a-porter as focused on elevated contemporary and luxury fashion and trends. The CEO also said Mytheresa's business is very strong in Europe while Mr Porter is strong in North America. The brand overlap is 35 percent in womenswear, 25 percent in men's, and within overlapping brands, less than 50 percent of the stock keeping units are found at Mytheresa and Net-a-porter. 'If you look at the higher spending customers, the overlap is even smaller, less than 9 percent and this is what we are going to protect and strengthen,' Kliger said. 'Having these different brands under one roof, we can cover different parts of the market, so that in totality, we cover more of the market. This is very important, and this is driving our strategy and our organizational principles.' 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