LUXEXPERIENCE BV (NYSE:LUXE) Q1 2026 Earnings Miss Estimates, Sending Shares Lower

LuxExperience B.V. (NYSE:LUXE) reported financial results for its first quarter of fiscal year 2026, revealing a performance that fell short of analyst expectations on key profitability metrics, leading to a negative reaction in pre-market trading.

Earnings and Revenue Performance Versus Estimates

The company's reported figures for the quarter ended September 30, 2025, showed a significant divergence from market expectations, particularly concerning profitability.

• Non-GAAP EPS: Reported at -€0.61, which was substantially below the analyst estimate of -€0.25.
• Revenue: Came in at approximately €579.5 million, missing the consensus estimate of €589.3 million.

This earnings miss appears to be the primary driver behind the stock's pre-market decline of approximately 4.9%. The market's reaction suggests investor disappointment with the wider-than-expected loss, despite the company's commentary on segment improvements.

Segment Performance Highlights

The earnings release presented a mixed picture across the company's three newly aligned segments, with one clear standout performer.

• Luxury | Mytheresa: This segment was the unequivocal bright spot, demonstrating strong growth and improved profitability.
  • Net Sales increased by 12.2% year-over-year to €226.3 million.
  • Adjusted EBITDA more than doubled to €7.9 million, with the margin expanding to 3.5% from 1.4%.
• Luxury | NAP & MRP (NET-A-PORTER and MR PORTER): Management noted "the first signs of a commercial turnaround," though financial results still reflected challenges.
  • Net Sales decreased by 10.8% to €212.3 million.
  • The segment reported a negative Adjusted EBITDA of -€14.6 million.
• Off-price | YOOX: Performance declined as expected, as the company focuses on transforming this part of the business.
  • Net Sales decreased by 16.6% to €118.6 million.
  • The segment's negative Adjusted EBITDA was €21.4 million.

At a group level, LuxExperience reported a Gross Merchandise Value (GMV) decline of 4.3% to €589.0 million and Net Sales decrease of 4.2% to €557.2 million. However, the company highlighted a 190-basis-point improvement in its Gross Profit Margin to 44.1% and an 8.2% reduction in SG&A expenses.

Strategic Developments and Outlook

The quarter was also marked by significant strategic actions. The company announced the sale of THE OUTNET's assets for $30 million, a move intended to allow LuxExperience to focus its off-price resources solely on YOOX. Following this divestment, THE OUTNET is now classified as a discontinued operation.

Looking ahead, the company provided an updated outlook for the full fiscal year 2026. LuxExperience now expects:

• GMV in a range of €2.4 billion to €2.7 billion.
• An Adjusted EBITDA margin between -2% and +1%.

This guidance stands in contrast to the more optimistic full-year analyst estimates, which had projected sales of €2.63 billion and an EPS of -€0.58. The company's own EBITDA margin forecast, while potentially reaching breakeven, acknowledges a more challenging profitability path than the market had perhaps hoped for in the near term.

Conclusion

LuxExperience's first quarter illustrates a company in transition. While the Mytheresa segment delivers impressive, profitable growth, the broader company results are being weighed down by the ongoing restructuring of its newly acquired YNAP assets. The market's negative reaction post-earnings seems directly tied to the substantial miss on EPS and the sobering reality reflected in the company's full-year guidance compared to prior analyst expectations. Investors will be watching closely to see if the promising turnaround signs at NET-A-PORTER and MR PORter materialize into sustained financial improvement and if the focus on YOOX can stem its losses.

For a more detailed look at historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research before making any investment decisions.