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

Thank you, operator, and welcome, everyone, to the LuxExperience Investor Conference Call for the fourth quarter and full fiscal year 2025. With me today is our CEO, Michael Kliger. Before we begin, we'd like to remind you that our discussions today will include forward-looking statements. Any comments we make about expectations are forward-looking statements and are subject to risks and uncertainties, including the risks and uncertainties described in our annual report. Many factors could cause actual results to differ materially. We are under no duty to update forward-looking statements. In addition, we will refer to certain financial measures not reported in accordance with IFRS on this call. You can find reconciliations of these non-IFRS financial measures in our earnings press release, which is available on our Investor Relations website at investors.luxexperience.com. I will now turn the call over to Michael.

Thank you, Martin. Also from my side, a very warm welcome to all of you, and thank you for joining our call. We will comment today on the results and performance of the fourth quarter and the full fiscal year 2025 of LuxExperience. As you know, we successfully closed the acquisition of YOOX NET-A-PORTER on April 23. Under the new name LuxExperience, we now operate the leading global digital multi-brand luxury group. LuxExperience operates a portfolio of some of the most distinguished store brands in digital luxury and creates communities for luxury enthusiasts worldwide with unique digital and physical experiences. Mytheresa, NET-A-PORTER and MR PORTER offer highly curated edits of the most prestigious luxury brands featuring womenswear, menswear, kidswear, fine jewelry and watches as well as lifestyle products. YOOX and THE OUTNET are the leading destinations for multi-brand off-season online luxury shopping. With the acquisition now complete, we will report going forward on the basis of a new segment reporting structure. The 3 segments are Luxury Mytheresa, Luxury Net-A-Porter and MR PORTER as well as Off-price, which is comprised of YOOX and THE OUTNET. As the transaction closed on April 23, the performance of the 2 new segments were mostly driven by the previous management. But in order to provide a more comprehensive view of the underlying performance of the segments, we will comment for all businesses on the full 12 months period ending June 30, 2025, even though our financial reporting for the LuxExperience Group reflects the contribution from the acquired businesses only for the period between closing and fiscal year-end. Let me start by commenting on the overall progress of establishing a new operating model for the now formed LuxExperience Group, which is built on strong store brand differentiation while enabling significant cost efficiencies in the joint infrastructure…

Thank you, Michael. As explained by Michael, we report across 3 segments: Luxury Mytheresa, our legacy business; Luxury NAP and MRP, which is comprised of NET-A-PORTER and MR PORTER; and Off-Price, which consists of YOOX and THE OUTNET. As the transaction closed on April 23, 2025, and our fiscal year ended June 30, our financial reporting for our LuxExperience Group reflects the contribution from the acquired businesses only for the period between closing and fiscal year-end. We will refer to these as reported figures. To provide a more comprehensive view of the underlying performance of the segments and the combined business group, we will also report on certain key metrics of the new segments and the LuxExperience Group on an illustrative basis, reflecting the full last quarter and full 12-month period ending June 30, 2025. I will now review the financial results for the fourth quarter and full fiscal year ended June 30, '25, on a segment basis and highlight specific developments that influenced each segment's performance. Following that, I will review the consolidated financial results for LuxExperience at group level and will then provide an outlook for fiscal year '26 and the medium term. Unless otherwise stated, all numbers refer to euro. Let's begin with the performance of our Mytheresa business. During the fourth quarter, covering April to June, Mytheresa's net sales increased by plus 11.5% to EUR 248.9 million. For the full fiscal year, net sales grew by 8.9% to EUR 916.1 million, in line with our guidance. GMV grew by plus 11.1% in the quarter to EUR 265.9 million and to EUR 988.5 million in the full fiscal year, a growth of plus 8.2%. Mytheresa's gross profit margin increased by 90 basis points from 47.4% in the prior year quarter to now 48.3% with our continued focus…

LuxExperience is in a remarkable position to become the one and only destination for luxury enthusiasts worldwide, bringing together some of the most iconic brands in digital luxury retail. The outstanding performance of Mytheresa shows our unique ability to deliver continued success in digital luxury. We will bring these capabilities and our successful approach to the new store brands. We managed to have a very fast start and have already made significant changes to the YNAP structure, processes and infrastructure since the completion of the acquisition in April. We will leverage the scale and scope of the newly formed group for efficiencies and value creation across the business segments. By building a community for luxury enthusiasts worldwide and creating desirability through digital and physical experiences, we will continue to generate enormous value for our customers, brand partners and shareholders. And with that, I ask the operator to open the line for your questions.

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

On the Mytheresa business, the AOV was impressive as well as the margins. What parts of the Mytheresa business experienced upside relative to your expectations? And what should we expect in terms of the margin profile going forward? You had a nice benefit with the unit economics. Also, you called out that SG&A, a big opportunity on the SG&A side on the NET-A-PORTER division. What's the road map for timing of what we should expect there, given it's a nice opportunity and some of it's within your control? And then on the customs effect, that would be helpful for us to understand what we should be thinking about with the risk associated with the sentiment that you articulated relative to customs. And finally, as you articulated the guidance on the EUR 2.5 billion to EUR 2.9 billion, it would be helpful for us to understand what you're seeing regionally and what you're assuming geographically in terms of achieving that guidance level at the top line.

Thank you, Oliver, for this one question. Let me start with your first question. I think clearly, the group guidance expects that we will continue to improve the profitability in the Mytheresa business, continually improving full price and thus have a further increase in gross margin. Upsides, I mean, we reported a very strong European business in this quarter, which is great. This is an important or the largest part of the Mytheresa trading. And we will -- we do expect continued strong growth in U.S. We're all aware that things are quite fickle nowadays. So this is all based on what we know today, but there is continued growth and continued margin improvement for Mytheresa definitely -- definitely possible. On the SG&A road map, I think also based on the May presentation, the elements are clear. It's in the operations, it's in the corporate functions, it's in the technology, it's in the data leverage. A lot of it is under our control, as you rightly put, Oliver. We are moving very fast on operations. And so this will definitely show the fastest and first results. Corporate also, we are going with a fine comb to all SG&A costs. Technology, this is the biggest part of savings, but this is the one that definitely takes 2 to 2.5 years. And maybe for the 2 last questions, I hand over to Martin on customs and guidance.

Oliver, happy to answer on the custom side. I mean we -- what we currently see is that the indirect customs effect on the customer sentiment is containable. So we see a continued strong growth of Mytheresa and all other business. So the overall effect of U.S. customs in the industry is still there, but we see green shoots. We see positive developments and also for us, not a barrier to continue our strong growth worldwide. And sorry, what was the second question?

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

Yes. I mean maybe we start with the last aspect. In our guidance growth, there is nothing like unexpected super growth in Asia modeled in or built in. So we continue to see what everybody sees that Asia, especially China, is still weak. As you know, our base is very small. So we don't -- so China is for us rather an option for further growth once the situation improves. But in the guidance, nothing is built in there. And as Michael called out, I mean, the regional growth avenues are quite vast for us. So we continue and expect to continue to grow worldwide with strong growth in Europe, continued also strong growth in the U.S. This is also clearly visible for us. And we are able to grow in all regions, no matter what the situation is there. So on the regional side, especially looking at the guidance, no unexpected or change in what we have seen so far, a continuous strong development of LuxExperience in all regions.

[Operator Instructions] We have a follow-up question from the line of Oliver Chen. Oliver, can't hear you currently. So we're going to move on to the next question. Next question comes from the line of Blake Anderson with Jefferies.

Congrats on all the deal progress so far. So I wanted to just ask on guidance. Could you give any more color on the key factors that would lead you to hitting the lower end of your EBITDA margin guidance versus the higher end? And then I'm wondering on quarterly cadence, can you provide maybe any quarter-to-date trends you've seen and any shaping of the year?

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

[Operator Instructions] We have a follow-up question from Oliver Chen.

On the details on NET-A-PORTER, you mentioned a couple of issues regarding inventory as well as demand creation on the marketing side. What's the timing and road map on both of those opportunities? It looks like they're definitely impacting the margin.

Well, as you know, there is a significant lead time in terms of changing assortment, improving the buy. So we have a strong new buying director in place. He is in the market. So the Fall/Winter '26 is the assortment that is now being bought. And so this kicks in early deliveries in May of next year. So the performance of the coming fiscal year is still very much influenced by spring/summer '26 that outside of the main selections has already been bought, but there are many other opportunities on the marketing side in terms of customer acquisition, customer targeting. We are changing the approach to performance marketing based on the experience and also models that we have built at Mytheresa over the years. So merchandise longest lead time on marketing and customers, but customer tactics, top customer engagement, all of these levers that have been neglected or in our view, not executed correctly, this will kick in and you will already see impact in that -- in those aspects in the first half of the next calendar year.

Okay. Michael, also, there's been a lot happening in the backdrop with different closures and distress as well. What are your thoughts on the current state of the promotional environment that you're seeing and opportunities amidst the closures? And then as we look at the designer landscape, you have a lot of really strong relationships, and there's a ton of newness on the creative side. What are your latest thinkings on the changes creatively and quiet relative to louder luxury?

On your first part, I think, yes, we have seen further steps in the consolidation of the sector. I still refer to it as a sort of perfect example of an industry curve that after boom and some weaker demand seasons, there is consolidation. And I continue to believe, and I think this also drives some of our numbers, this consolidation helps to get to a healthier industry to a reduction in promotional activities of different players. It's for sure that we have a much more balanced inventory to demand equation at the moment in place. So as long as demand continues to develop as it has over the last couple of months, we should be very fine. Of course, these things are fickle. And to your second part, you're absolutely right. I mean we are really at the pivotal moment at many houses, new designers. We have seen some first debuts to name Demna Gvasaliaas the new Creative Director at Gucci, which brought a lot of new attention to the brand. We will have further new designers at Bottega on Saturday with Louise Trotter. We will have a new designer at Versace presenting on Friday. And we believe there's a huge level of opportunity in there. There will be a lot of attention garnered by press, by influencers, by ambassadors. So we believe that not everything will work, but there's a significant amount of creativity coming into this market, and that's what it needs. And so we're really looking forward to it, and our buyers are ready to jump in when they see opportunities, when they see attractive merchandise as outlined by Martin, we are in a position to put dollars behind it if we believe there is a strong trend in the market.

Okay. And on the consumer sentiment piece, as you know, it's been somewhat volatile. What are you seeing with consumer sentiment and the feel good factor in relation to your business? Demna has been exciting at Gucci as well. It's a rebirth or a transformation with what's happening at that brand. Would love any thoughts on that opportunity as well.

I think I have -- whatever I say, I have to really build on your remark. We are in a very volatile environment. So everything we see is only as valid as far as we can sort of predict the future. But sentiment has been improving. I refer back to the strong results in the last quarter in Europe for Mytheresa. We continue to see good growth and acceleration in the demand in the United States. In Asia, from a very low level, there are improvements visible. So current trends are positive at different sort of levels of strength. But again, we are in a volatile environment, and we have seen a lot of macro shocks that change that quite quickly. Gucci is one of the biggest luxury brand in the industry, even with the negative trend of recent years, it's still a top 5 luxury brand. And so a new designer bringing in a lot of creativity and creating quite a lot of buzz in the last 2 days is very positive. Again, this is never a one season game. This is establishing new codes, building on the existing codes of the brand. So great start. And without a great start, you can't have a continuation, but a great start alone is, of course, also not enough.

Final, on the off-price division, you've been consistent with the need to take out costs there and rebase it to what's appropriate for the margin profile of that division. What are the harder parts of that business, and it's pretty different in terms of the buying techniques as well as the customer. What do you see happening in terms of your core competencies relative to that division? And how quickly can you get the margin structure in a place that you're happy with?

It is a different business. I mean we have shared the small overlap between the 2 luxury segments in that segment. But still, it is retail and still we firmly believe that the strict application of the principles of focusing on the customer, understanding what he or she really desires, servicing them well. And of course, being frugal. And it's not so much that these 2 businesses spend without any understanding of their cost structure. They were sitting on a cost structure that was not engineered for off-price. So it's really what we stressed often the separation of the infrastructure from the luxury to provide them an infrastructure that fits their gross profit margin in off-price and off-season is lower by definition of that business model. And so I think there are different challenges, but the opportunities are as big and the time horizon is as fast as we see with the NET-A-PORTER, MR PORTER luxury segment.

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