Emles Luxury Goods ETF (LUXE) Q4 2026 Earnings Report, Transcript and Summary

Greetings, and welcome to the LuxExperience Fourth Quarter and Full 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 fourth quarter and full fiscal year 2026 ended June 30, 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, including our guidance for fiscal year 2027 and our medium-term targets are forward-looking statements and are subject to risks and uncertainties, including risks and uncertainties described in our annual report. Many factors could cause actual results to differ materially, and 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 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%. We believe 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 3 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. In the fourth quarter, NET-A-PORTER and MR PORTER combined now also delivered positive growth and profitability. At YOOX, our strategy to focus on the healthy core of the business and make the business model leaner is now showing clear results. In the fourth quarter, YOOX achieved a 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. Our 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 outperformed the industry with double-digit top line growth and strong profitability. By focusing on wardrobe-building big spending customers, Mytheresa possesses a very resilient and consistent 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 a constant currency basis compared to Q4 fiscal year 2025 and for the full fiscal year 2026 by 11.5% on a constant currency basis compared to full fiscal year 2025. In the United States, the Mytheresa business grew net sales by plus 39.3% 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 23.8% of net sales of Mytheresa's total business. Mytheresa's strength and resilience are driven by 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 also 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 of 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 strength 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 4 exclusive prelaunches 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 2 new true luxury brands, Fendi and Piaget, which are now available on Mytheresa. Please see our investor presentation for more details on brand collaborations. The fourth quarter of 2026, Mytheresa also hosted more than 14 global top customer events and 6 exclusive "money can't buy" events with luxury brands, including Zimmermann, Dolce & Gabbana and Brioni across Europe, the United States and Asia, creating a strong sense of community for its top customers. Mytheresa also returned with the 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't 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 thus 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, reestablishing 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 strength 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 2026. Net sales increased by plus 5.6% on a 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 for NET-A-PORTER and MR PORTER combined. In the United States, 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 United States 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. 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 for 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 in numbers, but for 49.1% in terms of total GMV in fiscal year '26. The 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. The customer satisfaction of 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 the 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 Chloe, 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, Chloe, Gucci and Schiaparelli in the United States 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 investor presentation for more details on the unique editorial content and exclusive activations of NET-A-PORTER. MR PORTER hosted 6 unique EIP experiences with brand partners, including Zegna and Ralph Lauren in the United States 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 reestablishing themselves as leading digital multi-brand destinations for luxury fashion shoppers seeking editorial inspiration and brand discovery. Positive top line growth, improved customer 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 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 a 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 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. The 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 AUV overseas markets. In Europe, excluding the U.K., the AUV last 12 months increased by plus 2.1% in Q4 fiscal year '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 1,520 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 evolution into a culturally relevant lifestyle brand. Please see our investor presentation for more details on these events and activations. To sum it up, the focus on a healthy core for YOOX and a leaner 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 3 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 1 year into our transformation, we're already breaking even on adjusted EBITDA for the full year, 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 3 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. Inflection point at NAP and MRP, 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, reembarking 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 segment view and then walk you through our 3 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. Our GMV numbers follow a similar pattern and are as always fully disclosed in our press release, 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 with the acquisition. Unless otherwise stated, all numbers refer to euro. 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%, marking 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 6-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 ex 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 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 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, JPMorgan 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 3, 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 have 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 a record EUR 62.3 million in the full fiscal year. At Mytheresa, IEEPA tariff refunds 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 the prior year period. For the full fiscal year, net sales grew by 0.5% to EUR 994.8 million. This stands as an inflection point as the NAP & MRP segment had experienced continued strong revenue decline in preceding years and in preceding quarters as we accepted revenue decline with 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 effects. 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 '26. Lowering our cost base remains a 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 NAP and MRP segment, we achieved EUR 29.8 million SG&A cost savings versus fiscal year '25 or minus 11% of the cost base. In fiscal Q4, the 19.5% cost ratio at NAP and MRP 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 are very proud to report that this is our first quarter in fiscal year '26, achieving positive adjusted EBITDA at NAP and MRP, 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 NAP and MRP, IEEPA 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 NAP and MRP with a warehouse in the U.S. and a higher U.S. revenue share. Even if you take out the IEEPA tariff refund effect, fiscal Q4 would still be positive at NAP and MRP. The NAP and MRP operational setup is fully capable of dealing with various tariff situations and is expected to continue to do so. Inventory levels at NAP and MRP are slightly up, plus 5.5% to previous year. And going forward, we will continue to enable top line growth at NAP and MRP 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 simplified off-price tech environment. As Michael mentioned, and similar to NAP and MRP, 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 as the H1 SG&A cost ratio was at 28.1%, 430 basis points higher than in 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 H2 with minus 10.9% in fiscal 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 breakeven 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 3 segments. At Mytheresa, for fiscal year '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 NAP and MRP, 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 breakeven at YOOX in fiscal year '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 year's adjusted EBITDA margin. So 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 in 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 2 years to absorb another EUR 150 million 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 million to EUR 300 million without adding any cash utilization of our RCFs. On September 3, management received the authorization for a 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 and in total, a 2% to 3% adjusted EBITDA margin. We expect to grow even stronger with further improving industry sentiment. The turnaround of ex 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 year '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. You 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.

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

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'd 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 you'd want to make there because there's many different cross wins happening globally. And finally, on ERP platform migration, are you -- where are you with that? You've made a lot of progress, but would love any milestones we should pay attention to. And YOOX -- the YOOX repositioning 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.

Okay. Let me take on the geography and ERP questions, Oliver, and then Martin takes on the margin and YOOX 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 even more polarized by the different segments. We see real pockets of strength 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 helping us on the other end of the portfolio spectrum with YOOX success. Middle East, the demand has come back -- Arabic Peninsula demand has come back. But of course, there are still weekly, monthly swings to the positive or to the negative. And also a lot of the demand of our customers in the last months 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 in 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 and MR PORTER, for Mytheresa, the U.S. is the focus. That's where our marketing spend pays off nicely. For YOOX, it's really the core market Europe, 23% growth in the last quarter, fantastic for that business. So we are 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 and MR PORTER has been upgraded to BC Central and is live. So we've done the switch. ERP upgrades can be quite disturbing to business. We have done so with very little disturbance to the business. So we are running now on BC Central, both Mytheresa and NET-A-PORTER 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. Oliver, 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 that MRP and YOOX. Their significant improvements and also the top line will obviously help also on the cost ratio to get that closer to the Mytheresa benchmark level. YOOX, especially, I mean, we have in the full fiscal year '26 reported top line decline, minus 8.4% (sic) [ 5.8% ], and we guide fiscal year '27 to mid-single-digit decline, driven by what Michael said, refocus on the European geography with continuous focus on the healthy core customer because we are really focusing on turning YOOX around and increasing -- significantly increasing profitability. For fiscal year '26, we reported 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 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.

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

So I wanted to start off with the guidance in terms of the mid- to high single-digit sales growth. It 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 are there puts and takes to think about why the business might slow 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. So fiscal year '26 was strong. We entered 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 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 mid- 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 segment performance that all 3 segments have strong top line growth, Mytheresa, NET-A-PORTER, MR PORTER and YOOX. So continued commercial success, and we are really happy and therefore, have a strong guidance for fiscal year '27.

And as a follow-up on the Mytheresa AOV growth remains double digits. It 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 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 are very happy that we have achieved now EUR 875 at Mytheresa, and we already have 885 at NET-A-PORTER and 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 -- price items. So it's a mix effect that shows for the company. If the share of the business with top customer goes up to almost 50%, the 1,200, 1,300 AOV 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 Burberry on Mytheresa. We launched Piaget on Mytheresa. We have KHAITE, [indiscernible]. So we have a really good representation and see increasing appetite for also fine jewelry in the range of EUR 20,000 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, the, 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 YOOX in the portfolio that offers luxury fashion at deeper discounts because they're off-season, because they're 1-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.

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

I had a few on NET-A-PORTER and MR PORTER. First, great to see the acceleration ex FX in the U.S. from 3.7% to 15.1%. Curious if you can unpack if there was anything onetime 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 at parity with the Mytheresa business. Now that you've invested more in marketing, are you satisfied with this level of marketing spend?

There's no onetime effect that drove the really nice top line for NET-A-PORTER and 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 in new infrastructure. Our storytelling has completely been redone by the team since of January and all of that resonates. And then you put on top of it a lot of activations, of course, also focused on the U.S. customers, focused on the U.S. market. 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 onetime off. We will see continued success in NET-A-PORTER and MR PORTER. Almost 50% of their business is based in the U.S. So that always 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, 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. I mean the marketing cost of NET-A-PORTER has a higher share of editorial content. We launched the 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. So that's an important part of it. But then also digital marketing, we completely exchanged the tools and more important, the 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.

We have time for one more question. Our final question will be Cedric Norest with Morgan Stanley. This concludes today's call. Thank you for attending. You may now disconnect.