Q4 2026 LuxExperience BV Earnings Call

September 16, 2026

Speaker #1: Greetings, and welcome to the LuxExperience Q4 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: Greetings, and welcome to the LuxExperience Q4 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. It is now my pleasure to introduce your host, Martin Beer, the Chief Financial Officer of LuxExperience. Thank you, sir. Please begin.

Speaker #1: It is now my pleasure to introduce your host, Martin Beer, the Chief Financial Officer of LuxExperience. Thank you, sir. Please begin.

Speaker #2: Thank you, operator, and welcome, everyone, to the LuxExperience investor conference call for Q4 and the full fiscal year 2026, ended June 30. Joining us today is CEO Michael Kliger.

Martin Beer: Thank you, operator, and welcome everyone to the LuxExperience investor conference call for the Q4 and full fiscal year 2026 ended 30 June 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, 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.

Speaker #2: Before we begin, I would like to remind you that our discussions today will include forward-looking statements and 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 risk and uncertainties, including risks and uncertainties described in our annual report.

Speaker #2: 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.

Speaker #2: 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.

Martin Beer: I will now turn the call over to Michael.

Speaker #3: 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 Q4 of fiscal year 2026 and the full fiscal year for LuxExperience.

Michael Kliger: 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 Q4 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 2026 guidance as we achieved a GMV growth of +2.9% at constant currency and delivered a positive group-adjusted EBITDA margin of +0.4%. We believe these are remarkable results just 15 months after taking over a financially distressed YNAP business. Compared to fiscal year 2025 and considering all capitalized tech expenses, we have boosted group-adjusted EBITDA by EUR 64 million.

Speaker #3: 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.

Speaker #3: At group level, we have delivered on our full fiscal year 2026 guidance, as we achieved a GMV growth of +2.9% at constant currency and delivered a positive group adjusted EBITDA margin of +0.4%.

Speaker #3: We believe these are remarkable results just 15 months after taking over a financially distressed lineup business. Compared to fiscal year 2025 and considering all capitalized tech expenses, we have boosted group adjusted EBITDA by 64 million euro.

Speaker #3: Even more exciting, we achieved in the Q4 of fiscal year 2026 a GMV growth of +7.9% at constant currency and a group adjusted EBITDA margin of +2.1%.

Michael Kliger: Even more exciting, we achieved in Q4 of fiscal year 2026 a GMV growth of +7.9% at constant currency and a group-adjusted EBITDA margin of +2.1%. In Q4, we had positive top-line growth in all of our three reporting segments. At Mytheresa, we have set again the gold standard in Q4 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 Q4, 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.

Speaker #3: In the Q4, we had positive top-line growth in all of our 3 reporting segments. At My Teresa, we have set again the gold standard in the Q4, in terms of growth and profitability.

Speaker #3: 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.

Speaker #3: In Q4, 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.

Speaker #3: In Q4, Yoox achieved positive top-line growth, and losses were cut almost in half compared to Q4 of fiscal year 2025. With the tremendous progress made in the past 12 months and the strong business momentum in Q4 of fiscal year 2026, we are clearly on track to achieve our medium-term targets of group net sales of €4 billion and an adjusted EBITDA margin of 7% to 9%.

Michael Kliger: In Q4, YOOX achieved a positive top-line growth and losses were cut almost in half compared to Q4 of fiscal year 2025. With the tremendous progress made in the past 12 months and the strong business momentum in Q4 of fiscal year 2026, 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 2027, 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.

Speaker #3: For full fiscal year 2027, we expect accelerated top-line growth and further increased group adjusted EBITDA margin. Our strong current trading reinforces our continued positive business momentum.

Speaker #3: Martin will later clarify our guidance for fiscal year 2027. Let me now comment in more detail on the performance of the Mytheresa business.

Speaker #3: We again outperformed the industry with double-digit top-line growth and strong profitability. By focusing on wardrobe-building and big-spending customers, Mytheresa possesses a very resilient and consistent business model driven by superior customer economics.

Michael Kliger: 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 2026, marking a significant milestone in the company's success story. In Q4 of fiscal year 2026, Mytheresa grew its net sales by +10.2% on constant currency basis compared to Q4 of fiscal year 2025. For the full fiscal year 2026 by 11.5% on constant currency basis compared to full fiscal year 2025. In the United States, the Mytheresa business grew net sales by +39.3% on constant currency basis in Q4 fiscal year 2026 compared to Q4 fiscal year 2025. For the full fiscal year, the US accounted for 23.8% of net sales of Mytheresa's total business. Mytheresa's strengths and resilience are driven by its superior customer economics.

Speaker #3: A clear strategic focus and excellent execution allowed Mytheresa to become a $1 billion business in fiscal year 2026, marking a significant milestone in the company's success story.

Speaker #3: In Q4 of fiscal year 2026, MyTheresa grew its net sales by 10.2% on a constant currency basis compared to Q4 of fiscal year 2025, and for the full fiscal year 2026 by 11.5% on a constant currency basis compared to the full fiscal year 2025.

Speaker #3: In the United States, the Mytheresa business grew net sales by 39.3% on a constant currency basis in Q4 fiscal year 2026, compared to Q4 fiscal year 2025.

Speaker #3: For the full fiscal year, the US accounted for 23.8% of net sales of Mytheresa's total business. Mytheresa's strengths and resilience are driven by its superior customer economics.

Speaker #3: In Q4 of fiscal year 2026, the number of top customers at Mytheresa grew by 18% compared to the prior-year period. Furthermore, the average spend per top customer in terms of GMV grew by 4.8% in Q4 fiscal year 2026 versus Q4 fiscal year 2025, and 4.3% for the full fiscal year 2026.

Michael Kliger: In Q4 of fiscal year 2026, the number of top customers at Mytheresa grew by +18% compared to the prior year period. Furthermore, the average spend per top customer in terms of GMV grew by +4.8% in Q4 fiscal year 2026, versus Q4 fiscal year 2025, and +4.3% for the full fiscal year 2026. The average order value last 12 months for Mytheresa increased by a remarkable +13.1% to a record high of EUR 875 in Q4 fiscal year 2026. 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 2026.

Speaker #3: The average order value over the last 12 months for Mytheresa increased by a remarkable 13.1%, reaching a record high of $875 in Q4 of fiscal year 2026.

Speaker #3: 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 2026.

Speaker #3: The continued focus on selling at full price also drove, again, the gross profit margin increase of 150 basis points in Q4 of fiscal year 2026 compared to Q4 of fiscal year 2025.

Michael Kliger: The continued focus on selling full price also drove, again, the gross profit margin increase of +150 basis points in Q4 fiscal year 2026, compared to Q4 fiscal year 2025. Lastly, MYTHERESA's excellent customer service proposition is highlighted by our internal net promoter score, NPS, of 83.6% in Q4 fiscal year 2026. 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 2026, MYTHERESA launched 11 exclusive capsules 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.

Speaker #3: Lastly, Mytheresa's excellent customer service proposition is highlighted by our internal Net Promoter Score (NPS) of 83.6% in Q4 of fiscal year 2026. All these figures demonstrate the fundamental strengths and continued success of the Mytheresa business, based on superior customer economics.

Speaker #3: The success with big spending, wardrobe building customers, also makes My Teresa a highly desired partner for the world's most prestigious luxury brands. In the Q4 of fiscal year 2026, My Teresa launched 11 exclusive capsules collections and featured 4 exclusive pre-launches or exclusive styles campaigns.

Speaker #3: In collaboration with luxury brands such as Dolce & Gabbana, Pucci, Prada, Bottega Veneta, and Brioni, amongst many others, we are also very proud to have recently started digital partnerships with two new true luxury brands, Fendi and Piaget, which are now available on Mytheresa.

Michael Kliger: We are 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. 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 United States, 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.

Speaker #3: Please see our investor presentation for more details on brand collaborations. In Q4 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.

Speaker #3: 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. They hosted 29 events in 12 days, welcoming 790 customers on board.

Speaker #3: 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.

Michael Kliger: 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 strengths and resilience in their business models.

Speaker #3: Mytheresa sets the standard by delivering profitable growth based on its focus on its 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.

Speaker #3: 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.

Speaker #3: By applying the secret sauce of luxe experience—namely an obsessive focus on best customers, full-price selling, and cost discipline—we are successfully rebuilding strengths and resilience in their business models.

Speaker #3: 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.

Michael Kliger: 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 +5.6% on constant currency basis in Q4 fiscal year 2026 versus Q4 fiscal 2025, and for the full fiscal year 2026 by +4.5% compared to full fiscal year 2025 for NET-A-PORTER and MR PORTER combined. In the United States, net sales increased by +15.1% on a constant currency basis in Q4 fiscal year 2026, compared to Q4 fiscal year 2025. 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.

Speaker #3: Net sales increased by 5.6% on a constant currency basis in Q4 fiscal year 2026 versus Q4 fiscal year 2025, and for the full fiscal year 2026 by 0.5% compared to the full fiscal year 2025 for Net-a-Porter and Mr Porter combined.

Speaker #3: In the United States, net sales increased by 15.1% on a constant currency basis in Q4 fiscal year 2026, compared to Q4 fiscal year 2025.

Speaker #3: 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.

Speaker #3: In Q4 of fiscal year 2026, after an initial focus on the quality of the customer base in the first quarters, we again increased the number of top customers by 3.2% compared to Q3 of fiscal year 2026.

Michael Kliger: The Q4 of fiscal year 2026, after an initial focus on the quality of the customer base in the first quarters, we increased again the number of top customers by +3.2% compared to Q3 fiscal year 2026. Moreover, the average spend in terms of GMV per top customer increased by +9.4% in Q4 fiscal year 2026 versus Q4 fiscal year 2025, and +5.3% for the full fiscal year 2026. The average order value last 12 months increased by +9.1% to EUR 885 for NET-A-PORTER and MR PORTER combined in Q4 fiscal year 2026. 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 2026.

Speaker #3: Moreover, the average spend in terms of GMV per top customer increased by 9.4% in Q4 fiscal year 2026 versus Q4 fiscal year 2025, and by 5.3% for the full fiscal year 2026.

Speaker #3: The average order value over the last 12 months increased by 9.1% to $885 for Net-a-Porter and Mr Porter combined in Q4, fiscal year 2026. 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 number, but for 49.1% in terms of total GMV in fiscal year 2026.

Speaker #3: The clear focus on full-price selling to top customers instead of promotional discounting also drove a gross profit margin increase of 170 basis points in full fiscal year 2026 compared to fiscal year 2025.

Michael Kliger: The clear focus on full price selling to top customers instead of promotional discounting drove also a gross profit margin increase of +170 basis points in full fiscal year 2026 compared to fiscal year 2025. The 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 2026, the NPS increased by +6.7 percentage points compared to fiscal year 2025. All these KPIs confirm a significantly improved quality of the customer economics and business models of NET-A-PORTER and MR PORTER.

Speaker #3: The 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 2026, the NPS increased by 6.7 percentage points compared to fiscal year 2025.

Speaker #3: 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 Q4 of fiscal year 2026, 36 editorial campaigns for exclusive brand and product launches, with brands such as Chloé, Kate, Carolina Herrera, Tom Ford, Brunello Cucinelli, and Celine, amongst others.

Michael Kliger: 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 Q4 of fiscal year 2026, 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 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 2026. Please see our investor presentation for more details on the unique editorial content and exclusive activations of NET-A-PORTER.

Speaker #3: 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 United States and Europe in Q4.

Speaker #3: 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 2026.

Speaker #3: Please see our investor 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 Zenya and Ralph Lauren, in the United States and Italy.

Michael Kliger: MR PORTER hosted six 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 Q4 of fiscal year 2026 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's business performance.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: Positive top-line growth, improved customer economics, and positive bottom-line results in Q4 of fiscal year 2026 underline the success of the ongoing business transformation.

Speaker #3: 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's business performance.

Speaker #3: 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.

Michael Kliger: 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 Q4 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 of fiscal year 2026, net sales for YOOX increased by +6.6% on constant currency basis versus Q4 fiscal year 2025. For the full fiscal year 2026, net sales contracted by -5.8% compared to full fiscal year 2025.

Speaker #3: Positive top-line growth in Q4 and adjusted EBITDA losses almost halved speak to the success of the transformation thus far. This business momentum was further enhanced by Yuke'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.

Speaker #3: In Q4 of fiscal year 2026, net sales for Yuke's increased by 6.6% on a constant currency basis versus Q4, fiscal year 2025. For the full fiscal year 2026, net sales contracted by 5.8% compared to the full fiscal year 2025.

Speaker #3: Their net sales growth in Q4 was also driven by extraordinary inventory clearance, but most important was that in Europe, excluding the UK, Yuke's increased net sales by 22.7% compared to Q4 fiscal year 2025.

Michael Kliger: The net sales growth in Q4 was also driven by extraordinary inventory clearance, but most important was that in Europe, excluding the UK, YOOX increased net sales by +22.7% compared to Q4 fiscal year 2025. For the full fiscal year 2026, net sales in Europe, excluding the UK, grew by +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 2026, the average spend per top spending customer in terms of GMV grew by +12.3%. The average order value last 12 months decreased by -3.5% to EUR 243 in Q4 fiscal year 2026. However, this was also driven by the reduced focus on the high AOV overseas markets.

Speaker #3: For the full fiscal year 2026, net sales in Europe, excluding the UK, grew by 10.9% and accounted for 61.3% of total net sales for Yuke's business.

Speaker #3: 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 Yuke's in Q4, fiscal year 2026, the average spend per top spending customer in terms of GMV grew by 12.3%.

Speaker #3: The average order value for the last 12 months decreased by 3.5% to $243 in Q4, fiscal year 2026. However, this was also driven by the reduced focus on the high AOV overseas markets. In Europe, excluding the UK, the AOV for the last 12 months increased by 2.1% in Q4, fiscal year 2026.

Michael Kliger: In Europe, excluding the UK, the AOV last 12 months increased by +2.1% in Q4 fiscal year 2026. The gross profit margin decreased in Q4 fiscal year 2026, driven by the mentioned de-stocking push. For the full fiscal year 2026, the gross profit margin grew by +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 2026, increasing by 1,520 basis points compared to Q4 fiscal year 2025, 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.

Speaker #3: The gross profit margin decreased in Q4, fiscal year 2026, driven by the mentioned destocking push. For the full fiscal year 2026, the gross profit margin grew by 120 basis points to 38.5%, driven by a much more demand-driven pricing system increasing the share of first-price sales.

Speaker #3: Yuke's customer satisfaction measured by our internal NPS reached 49.1% in Q4, fiscal year 2026, increasing by 1,520 basis points compared to Q4, fiscal year 2025, showcasing also the effect of the LuxExperience secret sauce on Yuke's customer service operations.

Speaker #3: All the above KPIs demonstrate that the strategic focus on the healthy core is resulting in much improved customer economics. In Q4 of fiscal year 2026, Yuke's leveraged its 26th anniversary to drive brand engagement, consideration, and new customer acquisitions through flagship community events in Milan and Forte dei Marmi.

Michael Kliger: In Q4 of fiscal year 2026, 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 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.

Speaker #3: 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 Yuke's evolution into a culturally relevant lifestyle brand.

Speaker #3: Please see our investor presentation for more details on these events and activations. To sum up, the focus on a healthy core for Yuke's and a leaner operating model as part of our transformation plan is already showing great results.

Speaker #3: We are successfully rebuilding the position of Yuke's 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 Yuke's in fiscal year 2026.

Michael Kliger: Martin will speak shortly to the tremendous improvements we made to the bottom line of YOOX in fiscal year 2026. 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.

Speaker #3: 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.

Speaker #1: Thank you, Michael. In this call, I will focus the top-line development on net sales and constant currency. But before I provide you with more details on LuxExperience Group and individual segment performance, let me summarize the financial highlights, looking back at the full fiscal year 2026 and fiscal Q4 ended June 30, 2026.

Martin Beer: 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 2026 and fiscal Q4, ended 30 June 2026. We have delivered on our full year guidance on top and bottom line. With one year into our transformation, we are 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 2026, we achieved significant cost savings in SG&A of around EUR 55 million, or -9.9%. The last three months of the fiscal year, running from April to June, stood as an inflection point in our overall transformation.

Speaker #1: We have delivered on our full-year guidance on both the top and bottom line. With one year into our transformation, we're already breaking even on adjusted EBITDA for the full year, have no bank debt on our balance sheet, and $442 million in cash and cash investments, which are higher than expected.

Speaker #1: In fiscal year 2026, we achieved significant cost savings in SG&A of around $55 million, or -9.9%. The last three months of the fiscal year, running from April to June, stood as an inflection point in our overall transformation.

Speaker #1: Net sales in the quarter grew by 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.

Martin Beer: Net sales in the quarter grew by +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 +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 +10.2% and further strong increase of adjusted EBITDA by +10.9% in the quarter compared to previous year. Inflection point at NET-A-PORTER, reporting +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 +6.6% in the quarter.

Speaker #1: Adjusted EBITDA margin for LuxExperience stood at a positive 2.1%, marking the third consecutive quarter with positive and increasing adjusted EBITDA. These strong LuxExperience numbers are based on impressive performance across all segments.

Speaker #1: MyTheresa again, with double-digit net sales growth in the quarter at +10.2%, and a further strong increase of adjusted EBITDA by +10.9% in the quarter compared to the previous year.

Speaker #1: Inflection point at net, Mr. P, reporting +5.6% net sales growth for the first time and also achieving positive adjusted EBITDA profitability in the quarter.

Speaker #1: Yukes as well, and for the first time, re-embarking on net sales growth with +6.6% in the quarter. In addition, impressive profitability improvement at Yukes, with a 920 basis point increase in adjusted EBITDA versus Q4 of fiscal year 2025.

Martin Beer: In addition, impressive profitability improvement at YOOX, with a 920 basis points increase in adjusted EBITDA versus Q4 of fiscal year 2025. SG&A expenses at YOOX decreased by -20% versus the previous year quarter. Now, as usual, I will first review in more detail LuxExperience performance at the total segments view and then walk you through our three business segments: MYTHERESA, NET-A-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 for the acquisition. Unless otherwise stated, all numbers refer to EUR.

Speaker #1: SG&A expenses at YOOX decreased by 20% versus the previous year quarter. And now, as usual, I will first review in more detail LuxExperience's performance at the total segments view, and then walk you through our three business segments: luxury Mytheresa, luxury Net-a-Porter, and the off-price business of YOOX.

Speaker #1: 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 I always fully disclose them in our press release, investor presentation, and annual report.

Speaker #1: In addition, all numbers in the 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 euros.

Speaker #1: LuxExperience grew net sales by 7.6% in fiscal Q4. This was the strongest quarter of year-over-year growth in the fiscal year. In fiscal Q4, we achieved a positive adjusted EBITDA margin of 2.1%, marking our third consecutive quarter with positive adjusted EBITDA profitability.

Martin Beer: LuxExperience grew net sales by +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 +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 2026, 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. Please remember, this turnaround comes after years of YNAP with a persistent lack of profitability with a peak of a -175 million EBITDA in their fiscal year 2024.

Speaker #1: 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.

Speaker #1: For the full fiscal year 2026, 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.

Speaker #1: And please remember, this turnaround comes after years of X, Y, and M with a persistent lack of profitability, with a peak negative EBITDA of -$175 million in their fiscal year 2024.

Speaker #1: 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.

Martin Beer: 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 2026 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 2026. In the full fiscal year 2026, SG&A expenses went down by EUR 55 million or -9.9% of the cost base. In the fourth quarter of fiscal year, we generated a positive operating cash flow of +EUR 9 million. Operating cash burn in the full fiscal year was at -EUR 108 million, significantly better than the -EUR 120 million maximum operating cash burn communicated previously.

Speaker #1: If you look at the course of fiscal year 2026, 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, and now 17.6% in Q4 of fiscal year 2026.

Speaker #1: In the full fiscal year 2026, SG&A expenses went down by €55 million, or -9.9% of the cost base. In the fourth quarter of the fiscal year, we generated a positive operating cash flow of €9 million.

Speaker #1: Operating cash burn for the full fiscal year was at -€108 million, significantly better than the -€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 €442 million.

Martin Beer: 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, JP 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 +3.7% compared to the end of the last fiscal year. We are pleased to share that on 3 September, 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.

Speaker #1: 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 €25 million, to now €125 million.

Speaker #1: Despite strong top-line growth, inventory at the group level only increased by 3.7% compared to the end of the last fiscal year. We are pleased to share that, on September 3rd, management received authorization for a share repurchase program of our ADRs, which may be executed through an accelerated share repurchase program and at management’s discretion.

Speaker #1: Based on market conditions, we have not implemented the repurchase program as of now, and there is no guarantee that we will do so. Let me now review the performance of our Mytheresa business.

Martin Beer: 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 2026, net sales grew by +10.2% to EUR 269.2 million compared to the prior year period. For the full year, net sales grew by +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 2025. 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.

Speaker #1: We have seen continued strong net sales growth on all comps. During the fourth quarter of fiscal year 2026, net sales grew by 10.2% to $269.2 million compared to the prior year period. For the full year, net sales grew by 11.5% to $994.3 million.

Speaker #1: 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 2025.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: Subsequently, the adjusted EBITDA margin at Mytheresa expanded 20 basis points during the quarter to 6.6%, compared to 6.5% in the prior-year period.

Martin Beer: 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 +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 2024 to fiscal year 2026, we were able to increase the adjusted EBITDA margin by 320 basis points.

Speaker #1: For the full fiscal year, the adjusted EBITDA margin significantly improved by 140 basis points, from 4.9% to 6.3%. In absolute terms, adjusted EBITDA grew by 39.8% to a record €62.3 million for the full fiscal year.

Speaker #1: At My Theresa, IEPA territory funds in Q4 had an insignificant effect of 50 basis points in the adjusted EBITDA margin. In some and looking at the My Theresa business model, we have successfully coped with various tariff situations in the past quarters and years and expect to do so in the future.

Speaker #1: From fiscal year 2024 to fiscal year 2026, 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 3.9%, despite continuous double-digit top-line growth.

Martin Beer: We are continuing our effective inventory management with inventory levels at Mytheresa up only +3.9%, despite continuous double-digit top-line growth. In fiscal year 2026, Mytheresa had a positive operating cash flow of around +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 2026, net sales increased by +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.

Speaker #1: In fiscal year 2026, MyTheresa had a positive operating cash flow of around $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.

Speaker #1: 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 from our new leadership teams and the success of our transformation plan.

Speaker #1: During the fourth quarter of fiscal year 2026, net sales increased by 5.6% to $273.9 million compared to the prior year period. For the full fiscal year, net sales grew by 0.5% to $994.8 million.

Speaker #1: This stands as an inflection point as the NAB Mississippi 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.

Martin Beer: This stands as an inflection point as the NET-A-PORTER 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 H2 of fiscal year 2026 compared to the H1, while the gross profit margin decline in the quarter was driven by previous year effects. For the full fiscal year 2026, the gross profit margin increased as well by 170 basis points from 45.9% in fiscal year 2025 to 47.5% in fiscal 2026.

Speaker #1: 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 2026 compared to the first half, while the gross profit margin decline in the quarter was driven by previous year effects.

Speaker #1: For the full fiscal year 2026, the gross profit margin increased as well by 170 basis points, from 45.9% in fiscal year 2025 to 47.5% in fiscal 2026.

Speaker #1: Lowering our cost base remains a central pillar of our transformation, and our SG&A cost improvements showed acceleration throughout fiscal year 2026. For Q4, our SG&A cost ratio improved 500 basis points year over year, from 24.5% to 19.5%.

Martin Beer: Lowering our cost base remains a central pillar of our transformation, and our SG&A cost improvements showed acceleration throughout fiscal year 2026. 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 H2 of fiscal year 2026 improved by 350 basis points versus the H1 of the fiscal year. In absolute terms, already in the first year of our transformation at the NET-A-PORTER segment, we achieved EUR 29.8 million SG&A cost savings versus fiscal year 2025 or -11% of the cost base. In fiscal Q4, the 19.5% cost ratio at NET-A-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.

Speaker #1: The SG&A cost ratio in the second half of fiscal year 2026 improved by 350 basis points versus the first half of the fiscal year.

Speaker #1: In absolute terms, already in the first year of our transformation, at the NAB Mississippi segment, we achieved €29.8 million in SG&A cost savings versus fiscal year 2025, or minus 11% of the cost base.

Speaker #1: In fiscal Q4, the 19.5% cost ratio at NAB Mississippi was still 700 basis points higher than at My Theresa. And thus still leaves significant opportunity for further cost savings.

Speaker #1: Especially in tech and operations. On the bottom line, we are very proud to report that this is our first quarter in fiscal year 2026 achieving positive adjusted EBITDA at NAB Mississippi.

Martin Beer: On the bottom line, we are very proud to report that this is our first quarter in fiscal year 2026 achieving positive adjusted EBITDA at NET-A-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 2026 was also already positive on adjusted EBITDA level at a +1.2% margin versus -2.5% in fiscal H1. At NET-A-PORTER, 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 NET-A-PORTER with a warehouse in the US and a higher US revenue share. Even if you take out the IEEPA tariff refund effect, fiscal Q4 would still be positive at NET-A-PORTER.

Speaker #1: 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.

Speaker #1: With this, H2 of fiscal year 2026 was also already positive on an adjusted EBITDA level, at a +1.2% margin versus -2.5% in fiscal H1. At NAB Mississippi, IEPA tariff refunds had a positive effect of 250 basis points on the adjusted EBITDA margin in the quarter.

Speaker #1: The effect is stronger than at Mytheresa, given the operational setup of NAB Mississippi with a warehouse in the US and a higher US revenue share.

Speaker #1: Even if you take out the IEPA tariff refund effect, fiscal Q4 would still be positive at NAB Mississippi. The NAB Mississippi operational setup is fully capable of dealing with various tariff situations and is expected to continue to do so.

Martin Beer: The NET-A-PORTER operational setup is fully capable of dealing with various tariff situations and is expected to continue to do so. Inventory levels at NET-A-PORTER are slightly up +5.5% to previous year, and going forward, we will continue to enable top-line growth at NET-A-PORTER with adequate working capital. Before reviewing YOOX's financial performance, I want to note that following the successful sale of THE OUTNET 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 are 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.

Speaker #1: Inventory levels at NAB Mississippi are slightly up, +5.5% to previous year, and going forward, we will continue to enable top-line growth at NAB Mississippi with adequate working capital.

Speaker #1: Before reviewing UKE's financial performance, I want to note the following: the successful sale of The Outnet at the end of April. We also concluded our transition services agreement with the buyer at the end of July 2026.

Speaker #1: Concluding this final step in the divestment allows us to fully concentrate our resources on driving our core off-price business at UKE. In line with our transformation plan, at UKE 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.

Speaker #1: As Michael mentioned, and similar to NAB Mississippi, we achieved top-line growth at UKE already in the fourth quarter. Net sales for the quarter came in at €110.5 million, representing growth of +6.6%.

Martin Beer: As Michael mentioned, and similar to NET-A-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 +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 2026 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 -23.3% of the cost base. The acceleration is also visible throughout fiscal year 2026, as the H1 SG&A cost ratio was at 28.1%, 430 basis points higher than in H2 of fiscal year 2026, at 23.8%.

Speaker #1: 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.

Speaker #1: Our SG&A cost ratio in H2 of fiscal year 2026, compared to H2 of the previous year, improved significantly by 560 basis points—from 29.4% to 23.8%.

Speaker #1: This equals to 17.5 million absolute cost savings or -23.3% of the cost base. The acceleration is also visible throughout fiscal year 2026 as the H1 SG&A cost ratio was at 28.1%, 430 basis year 2026 at 23.8%.

Speaker #1: On the back of these SG&A cost savings, adjusted EBITDA improved significantly in fiscal year 2026. The Q4 adjusted EBITDA margin in fiscal year 2026 was at -10.5% versus -19.8% in the previous year.

Martin Beer: On the back of these SG&A cost savings, adjusted EBITDA improved significantly in fiscal year 2026. The Q4 adjusted EBITDA margin in fiscal year 2026 was at -10.5% versus -19.8% in the previous year. This represents a 920 basis points margin improvement. The acceleration during fiscal year 2026 is also visible in comparing the -7.8% margin in fiscal H2 with -10.9% in fiscal H1. A 310 basis points margin improvement from H1 to H2 of fiscal year 2026. Inventory levels at YOOX were stable at +0.3% versus previous year. Let's look ahead to fiscal year 2027, which has already started in July 2026. We are very proud of the significant progress achieved in fiscal year 2026, which will have a full year effect in fiscal year 2027 on top to additional measures already defined.

Speaker #1: This represents a 920 basis point margin improvement. The acceleration during fiscal year 2026 is also visible when comparing the -7.8% margin in fiscal H2 with the -10.9% margin in fiscal H1.

Speaker #1: We saw a 310 basis point margin improvement from H1 to H2 of fiscal year 2026. Inventory levels at UKE were stable at +0.3% versus the previous year.

Speaker #1: Let's look ahead to fiscal year 2027, which has already started in July 2026. We are very proud of the significant progress achieved in fiscal year 2026, which will have a full-year effect in fiscal year 2027, on top of additional measures already defined.

Speaker #1: Supported by our transformation activities in fiscal year 2026, net sales showed an increase of 3.2%. With the top-line success of Q4 and our visibility into Q1 of fiscal year 2027, we expect to grow mid- to high-single-digits at group level for fiscal year 2027 in total.

Martin Beer: Supported by our transformation activities in fiscal year 2026, net sales showed an increase of +3.2%. With the top-line success of Q4 and our visibility into Q1 of fiscal year 2027, we expect to grow mid to high single digit at group level for fiscal year 2027 in total. On bottom line, in fiscal year 2026, we achieved a break-even for the full year and a +1.7% adjusted EBITDA margin in H2 of fiscal year 2026. For fiscal year 2027, 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 MYTHERESA, for fiscal year 2027, 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 2026.

Speaker #1: On the bottom line, in fiscal year 2026, we achieved break-even for the full year and a +1.7% adjusted EBITDA margin in H2 of fiscal year 2026.

Speaker #1: For fiscal year 2027, we expect the adjusted EBITDA margin to be 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.

Speaker #1: At Mytheresa, for fiscal year 2027, on the top line, we expect continued high single-digit to low double-digit growth, and adjusted EBITDA profitability slightly better than in the full fiscal year 2026.

Speaker #1: At NAB Mississippi, we expect continued growth, with top-line mid-single-digit increases and around 100 to 200 basis points of adjusted EBITDA margin improvement compared to the full fiscal year 2026—not compared to Q4.

Martin Beer: At NET-A-PORTER, continued growth top-line mid-single digit, and around 100 to 200 basis points adjusted EBITDA margin improvement compared to full fiscal year 2026, 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 fiscal year 2028. Given the seasonality of our business, the strong fiscal Q4 performance for the group should not be expected throughout fiscal year 2027. 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 2026, we are very pleased with the performance.

Speaker #1: At UKE, 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 UKE in fiscal year 2028.

Speaker #1: Given the seasonality of our business, the strong fiscal Q4 performance for the group should not be expected throughout fiscal year 2027. Fiscal Q1 and Q3 usually have lower performance, and fiscal Q2 and Q4 have stronger performance than the average.

Speaker #1: For the current fiscal Q1, which runs from July to September 2026, 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.

Martin Beer: 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 2027, we expect on top line a 10% to 15% CAGR in the next years. On bottom line and in the years after fiscal year 2027, 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 two years to absorb another EUR 150 to 250 million total cash burn.

Speaker #1: So, we expect a significantly improved Q1 performance. Beyond fiscal year 2027, we expect, on the top line, a 10% to 15% CAGR in the next years.

Speaker #1: On bottom line, and in the years after fiscal year 2027, 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 $4 billion net sales.

Speaker #1: We have a strong cash position today and anticipate the remaining transformation in the next two years to absorb another $150 to $250 million in total cash burn.

Speaker #1: We therefore expect to have a significant cash buffer during and after the transformation, of a minimum of around €200 to €300 million, without adding any cash utilization of our RCFs.

Martin Beer: We therefore expect to have a significant cash buffer during and after the transformation of a minimum of around EUR 200 to 300 million without adding any cash utilization of our RCFs. On 3 September, 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 is 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 2027 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.

Speaker #1: On September 3rd, management received authorization for a share repurchase program of our ADRs, which may be executed through accelerated share repurchases and at management's discretion.

Speaker #1: Based on market conditions, we have not implemented the repurchase program as of now, and there's no guarantee that we will do so. In summary, we are at an inflection point for LuxExperience.

Speaker #1: 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 2027 to take significant market share and, in total, a 2% to 3% adjusted EBITDA margin.

Speaker #1: We expect to grow even stronger with further improvement in industry sentiment. The turnaround of XYNAP is bearing fruit, with significant sequential and accelerating SG&A cost savings and adjusted EBITDA improvements.

Martin Beer: 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. With this, I will hand over to Michael for his concluding remarks.

Speaker #1: We have a significant cash buffer to weather any further macro uncertainties. We are committed to continuing our track record of diligently executing our plans and delivering what we target.

Speaker #1: 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.

Michael Kliger: 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 custom economics. The results of Q4 fiscal year 2026 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 2027, we now expect a further acceleration of top-line growth and even healthier profitability.

Speaker #1: The strength of our businesses is based on resilient business models and superior customer economics. The results of Q4 fiscal year 2026 underline this, and show the tremendous progress we have achieved in our transformation plan in just the last 12 months.

Speaker #1: 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.

Speaker #1: We have proven that at LuxExperience, we possess the secret sauce in digital luxury. You just heard from Martin regarding fiscal year 2027. We now expect a further acceleration of top-line growth and even healthier profitability.

Speaker #1: 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.

Michael Kliger: 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. With that, I ask the operator to open the line for your questions.

Speaker #1: And with that, I ask the operator to open the line for your questions.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Oliver Chen with TD Cowen. Oliver, your line is open. Please go ahead.

Speaker #2: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand.

Speaker #2: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #2: And if you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Oliver Chen with TD Cowen.

Speaker #2: Oliver, your line is open. Please go ahead.

Speaker #3: Well, especially in the US, it'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?

Oliver Chen: Especially in the US, very impressive. Regarding the guidance and the modeling, what should we know about gross margin relative to SG&A? 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 are seeing regionally between all the momentum and share gains in the US relative to Europe and any distinctions that you would want to make there, because there are many different crosswinds happening globally. Finally, on ERP platform migration, where are you with that? You have made a lot of progress, but would love any milestones we should pay attention to. The YOOX repositioning seems quite compelling.

Speaker #3: Michael, it would also be helpful if you could brief us a bit on what you're seeing regionally—with all the momentum and share gains in the US relative to Europe—and highlight any distinctions you'd want to make there, since there are many different crosswinds happening globally.

Speaker #3: And finally, on ERP platform migration—where are you with that? You've made a lot of progress, but we'd love to hear about any milestones we should pay attention to.

Speaker #3: And the UKE's repositioning seems quite compelling. But as we look ahead, it sounds like you're still looking for the negative mid-single-digit range, but would love puts and takes on profitability there, given the repositioning underway.

Oliver Chen: But as we look ahead, it sounds like you are 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.

Speaker #3: Thanks a lot.

Speaker #1: Okay, let me take on the geography and ERP questions, Oliver, and then Martin will take on the margin and UKE's profitability. So, geography-wise, as stated, the fastest-growing digital luxury market...

Michael Kliger: Okay. Let me take on the geography and ERP questions, Oliver, and then Martin takes on the margin and YOOX profitability. So geography-wise, as stated, the US 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 US market. The US 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 strengths where wealth has agglomerated, be it Italy, be it Spain, Portugal, Greece. There is a lot of influx of new money.

Speaker #1: 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 US market.

Speaker #1: The US 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, and also probably even more polarized by the different segments. We see real pockets of strength where wealth has agglomerated—be it Italy, Spain, Portugal, or Greece. There's a lot of influx of new money.

Speaker #1: That Europe is also a great success case for UKE 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.

Michael Kliger: 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. Arabian Peninsula, demand has come back, but of course, there are still weekly, monthly swings to the positive or to the negative. 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. Lastly, China, Greater China.

Speaker #1: But here, the polarization is, of course, also helping us. On the other end of the portfolio spectrum, with UKE's success, the demand in the Middle East has come back.

Speaker #1: 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 months happened abroad.

Speaker #1: So we will see how much the domestic demand from those clients that we continue to serve 12 months a year will pick up as we move back into the region in September, October, and November.

Speaker #1: And lastly, China. For Greater China, we believe that at the beginning of the year we will see the bottom, and it will rapidly improve. This summer was disappointing.

Michael Kliger: 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. For NET-A-PORTER, MR PORTER, for MYTHERESA, the US is the focus. That is where our marketing spend pays off nicely. For YOOX, it is really the core market, Europe, 23% growth in the last quarter. Fantastic for that business. 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 HRIS system has already been introduced globally in May. The ERP system for NET-A-PORTER, MR PORTER has been upgraded to Business Central and is live. We have done the switch. ERP upgrades can be quite disturbing to business. We have done so with very little disturbance to the business.

Speaker #1: While Southeast Asia still offers opportunities, for Net-a-Porter, Mr Porter, and Mytheresa, the US is the focus. That's where our marketing spend pays off nicely.

Speaker #1: For UKE, it's really the core market—Europe. Twenty-three percent growth in the last quarter. Fantastic for that business, so we're very pleased with that. On the ERP side, we made continuous progress.

Speaker #1: 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.

Speaker #1: 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, Mr. Porter.

Michael Kliger: We are running now on Business Central, both MYTHERESA and NET-A-PORTER, MR PORTER. There will be another big system upgrade in autumn on all the buying and merchandising business operations in NET-A-PORTER, MR PORTER, and the webshop migration continues to progress very well. We had the very first demo sessions on the app, on the website. We are fully in line, if not even slightly ahead on the systems upgrades. Martin?

Speaker #1: It will be another big system upgrade in autumn, covering all the buying and merchandising business operations in Net-A-Porter and Mr Porter. The web shop migration continues to progress very well.

Speaker #1: We had the very first demo sessions on the app and on the website. So we are fully in line, if not even slightly ahead, on the systems upgrades.

Speaker #1: Martin?

Speaker #4: Yeah, happy to take the margin questions. Oliver, exactly as you say, the profitability improvement is coming from the top line, but also from a cost ratio perspective, or income ratio, on gross profit margin.

Martin Beer: Yeah, 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 NET-A-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. YOOX especially, we had in the full fiscal year 2026, reported top line decline -8.4%, and we guide fiscal year 2027 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 significantly increasing profitability. For fiscal year 2026, we reported a -9.4% adjusted EBITDA margin.

Speaker #4: We expect continuous further improvement, especially on the SG&A cost ratio, particularly at Mr. P and UKE. There have been significant improvements, and the top line will obviously also help the cost ratio.

Speaker #4: To get that closer to the By-Theresa benchmark level. U.K.E.—especially, I mean, we had in the full fiscal year '26 reported top-line decline of minus 8.4%.

Speaker #4: And we guide fiscal year ’27 to a 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 UKE around and significantly increasing profitability.

Speaker #4: 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, especially on SG&A, we then guide to a mid-single-digit negative profitability.

Martin Beer: For fiscal year 2027, now with the continuous efforts that we are doing especially on SG&A, then guide to a mid-single digit negative profitability. Again, almost halving the losses there. Also I had earlier communicated that for fiscal year 2028, we clearly target and expect the turnaround at YOOX on adjusted EBITDA level.

Speaker #4: So again, almost halving the losses there. And also, I had earlier communicated that for fiscal year 2028, we clearly target and expect the turnaround at UKE on an adjusted EBITDA level.

Speaker #2: Thank you. Best regards.

Michael Kliger: Thank you. Best regards.

Speaker #3: Your next question comes from the line of Blake Anderson with Jefferies. Blake, your line is open. Please go ahead.

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

Speaker #5: Thanks for taking my question. I wanted to start off with the guidance in terms of the mid- to high single-digit sales growth. It sounds like you guided for high single digits in Q1, so it’s off to a stronger start.

Blake Anderson: Thanks for taking my question. I wanted to start off with the guidance, in terms of the mid to high single-digit sales growth. Sounds like you guided high single for Q1, so it is 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 how you are 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?

Speaker #5: How should we think about the likelihood that, for the full year, you reach high single digits versus slowing down to mid-single digits? Just wondering how you're thinking about the back half.

Speaker #5: Are you being prudent, or are there puts and takes to consider regarding why the business might slow in Q2 through Q4?

Michael Kliger: 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 2026 was strong. We entered fiscal year 2027 with a strong Q1, which is great. 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 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.

Speaker #4: I mean, Blake, thanks for the question. The good thing is, as we report now and Q1 is almost finished, we obviously have clear visibility into Q1 and are very happy with the overall performance.

Speaker #4: So, 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 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.

Speaker #4: 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.

Speaker #4: And then now, guidance for the full fiscal year. And obviously, that implies—and we also gave a bit of color on the second performance—that all three segments have strong top-line growth.

Michael Kliger: That implies, and we also gave a bit of a color on the segment performance, that all three 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 2027.

Speaker #4: 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.

Speaker #5: Thank you. And as a follow-up on that, mytheresa AOV growth remains in the double digits. It seems like that's really driving the business, with shipments closer to flat.

Blake Anderson: Thank you. As a follow-up on the Mytheresa AOV growth, it remains double digits. It seems like that is 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? If I could also ask on YOOX, Q4 was really strong, led by Europe, as you called out. Curious if there is any more color you can provide on the strength there in that region in Q4.

Speaker #5: 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 the sustainability of AOV into 2027, that double-digit growth?

Speaker #5: And then if I could also ask about UKE—Q4 was really strong, led by Europe, as you called out. I'm curious if there's any more color you can provide on the strength in that region in Q4.

Speaker #1: Sure, happy to jump in on this. So clearly, high AOV is really helping with unit economics. We're very happy that we have achieved now €875 at MyTheresa, and we already have €885 at Net-A-Porter and Mr Porter.

Michael Kliger: Sure. Happy to jump in on this. Clearly, high AOV is really helping on unit economics. So, we are very happy that we have achieved now 875 at Mytheresa, and we already have 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 is a mix 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 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 Bulgari on Mytheresa. We launched Piaget on Mytheresa. We have Cartier, Vacheron Constantin.

Speaker #1: Drivers for this are the growing importance of the top customers. Top customers, by definition and in reality, always have a higher basket value. They shop higher item value.

Speaker #1: Items. So it's a mix effect that shows for the company. If the share of the business with top customers goes up to almost 50%, the €1,200–€1,300 AOV baskets of those customers take a bigger weight without significantly changing the items.

Speaker #1: We do see also another big influence is the increasing expansion of fine jewelry. We have Bulgari on Mytheresa. We launched Piaget on Mytheresa.

Speaker #1: We have Cartier and Vacheron, so we have a really good representation and see increasing appetite for fine jewelry in the range of €20,000 to €80,000 per piece.

Michael Kliger: 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 us call it for better words, middle-class luxury spend customer who think twice now how much they spend. There is inflationary pressure. There are energy prices. So, we believe having YOOX in the portfolio that offers luxury fashion at deeper discounts because they are off season, because they are one-year-old items. But for people that want to have great brands at those prices, it is a great offer. The focus on Europe is engineered. We have an AOV of 250 to 243, I believe, in YOOX.

Speaker #1: So that also drives, but fully plays 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 a better word—the middle-class luxury spend customer, who thinks twice now about how much they spend.

Speaker #1: There is inflationary pressure. There are energy prices. So, we believe having UKE in a portfolio that offers luxury fashion at deeper 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.

Speaker #1: And the focus on Europe is engineered. We have an AOV of 250, 240—three, I believe, in the UK. And so it makes much more sense to incur shipping costs for Europe, for the continent, than trying to compete at this stage.

Michael Kliger: It makes much more sense to incur shipping costs for Europe, for the continent than trying to compete, at this stage in the US or in Japan for big business. That may change in the future, but at the moment, we focus on the healthy core.

Blake Anderson: It makes much more sense to incur shipping costs for Europe, for the continent than trying to compete, at this stage in the US or in Japan for big business. That may change in the future, but at the moment, we focus on the healthy core.

Speaker #1: In the US or in Japan, for big business. That may change in the future, but at the moment, we focus on the healthy core.

Speaker #5: That's very helpful. Thanks so much.

Blake Anderson: That is very helpful. Thanks so much.

Speaker #3: Your next question comes from the line of Anna Gleskin with B. Riley. Anna, your line is open. Please go ahead.

Operator: Your next question comes from the line of Anna Glaessgen with B. Riley. Anna, your line is open. Please go ahead.

Speaker #6: Hi, good morning. Thanks for taking my question. I had a few on Netta Porter and Mr. Porter. First, great to see the acceleration XFX in the US from 3.7 to 15.1.

Anna Glaessgen: Hi. Good morning. Thanks for taking my question. I had a few on NET-A-PORTER and MR PORTER. First, great to see the acceleration, ex-FX in the US from 3.7% to 15.1%. Curious if you can unpack if there was anything one time in the quarter that we should be aware of. Then secondly, in the past you have discussed bringing up the marketing spend to be at parity with the Mytheresa business. Now that you have invested more in marketing, are you satisfied with this level of marketing spend? Thanks.

Speaker #6: I'm curious if you can clarify whether there was anything one-time in the quarter that we should be aware of. And then secondly, in the past we've discussed bringing up the marketing spend to be at parity with the Mytheresa business.

Speaker #6: Now that you've invested more in marketing, are you satisfied with this level of marketing spend? Thanks.

Speaker #1: There's no one-time effect that drove the really nice top line for Net-A-Porter, Mr Porter. In the US, it's just our marketing getting better.

Michael Kliger: There's no one-time effects that drove the really nice top line for NET-A-PORTER, MR PORTER in US. 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 January, and all of that resonates. Then you put on top of it a lot of activations, of course, also focused on the US customers, focused on the US markets. That's the formula. It's not defining the formula, it's executing that makes a difference. 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 and MR PORTER, almost 50% of their business is based in the US.

Speaker #1: 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 January, and all of that resonates.

Speaker #1: And then you put on top of it a lot of activations, of course, also focused on the US customers, focused on the US markets.

Speaker #1: 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.

Speaker #1: So that the last quarter was not a one-time off. We will see continued success. Netta Porter and Mr. Porter over almost 50% of their business is based in the US.

Speaker #1: So, that always has been and will be a stronghold. And we just kicked off New York Fashion Week with big campaigns, big events, also by Net-a-Porter in New York.

Michael Kliger: That always has been and will be a strong hold. We just kicked off New York Fashion Week with big campaigns, big events, also by NET-A-PORTER in New York. 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. 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 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. Something we have done since 2017 on MYTHERESA.

Speaker #1: And thus, this is not a one-off. This is a continuation. And regarding marketing expenses, we are very happy with what we see. It's a dual effort.

Speaker #1: I mean, the marketing cost of Net-a-Porter has 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.

Speaker #1: 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, in digital marketing, we completely exchanged the tools, and more importantly, the algorithms, and they're getting better and better now.

Speaker #1: I mean, it's something we have done since 2017 on My Theresa. So all of that pays off. But we have just started; there's so much more we can do—and it works.

Michael Kliger: All of that pays off. But we've just started. There's so much more we can do, and it works. We are very happy with the spending level, and if we see more opportunity, we will actually spend more.

Speaker #1: So we are very happy with the spending level, and if we see more opportunity, we will actually spend more.

Speaker #6: Great. Thank you.

Anna Glaessgen: Great. Thank you.

Speaker #3: We have time for one more question. Our final question will be from Cedric Norrist with Morgan Stanley. Oh—hold, please. Right. This concludes today's call.

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