LuxExperience Group Returns to Profitability but Misses Revenue Expectations
LuxExperience B.V. (NYSE:LUXE), the digital luxury group formed from the merger of Mytheresa and the former YOOX Net-A-Porter (YNAP) businesses, reported financial results for its second quarter of fiscal year 2026. The figures reveal a company making tangible progress on its complex turnaround plan, though not without significant challenges that have left it trailing analyst forecasts on the top line.
Earnings and Revenue Versus Estimates
The company’s performance against Wall Street expectations presents a mixed picture. LuxExperience reported net sales of €646.9 million for the quarter ended December 31, 2025. This fell short of the analyst consensus estimate of €658.9 million.
On the profitability front, the company reported an adjusted loss per share of €0.14. This was wider than the estimated loss of €0.07 per share anticipated by analysts. The miss on both revenue and earnings per share suggests the turnaround, while showing operational progress, is proving more difficult and costly than the market had hoped.
- Reported Revenue: €646.9M
- Estimated Revenue: €658.9M
- Reported EPS (Adj.): -€0.14
- Estimated EPS (Adj.): -€0.07
Market Reaction and Price Action
The market's initial reaction to the earnings release appears cautiously optimistic, likely focusing on the broader strategic progress rather than the immediate earnings miss. In pre-market trading, the stock showed a gain of approximately 3.5%. This positive move contrasts with the stock's recent weakness, as shares were down about 6.4% over the past month leading into the report. The pre-market bounce suggests investors are giving credit to management for achieving a key milestone: returning the consolidated group to positive adjusted EBITDA.
Key Takeaways from the Q2 FY26 Report
The press release underscores a quarter of significant transition and foundational improvement across the newly integrated group.
Return to Group Profitability: The headline achievement was a return to positive adjusted EBITDA at the group level, reporting €13.2 million with a margin of 2.0%. This marks a crucial step in confirming the company's transformation plan, which targets medium-term sales of €4 billion and a 7-9% adjusted EBITDA margin. Strong operating cash flow of €118.5 million was also a highlight.
Segment Performance Divergence: The results highlighted the starkly different trajectories of LuxExperience's three core segments.
- Luxury | Mytheresa remains the engine of growth and profitability, with net sales up 11.6% ex-currency and adjusted EBITDA margin expanding to 9.3%.
- Luxury | NAP & MRP (NET-A-PORTER and MR PORTER) showed "significant sequential improvement," with declining sales trends moderating sharply and cost discipline taking hold, though it remained slightly EBITDA negative.
- Off-Price | YOOX continues to be the biggest challenge, with sales and gross margin under pressure. However, it too showed a "clear improvement" from the disastrous first quarter, and its adjusted EBITDA loss narrowed considerably.
Transulation Plan Execution: Management emphasized concrete actions being taken, including a partial workforce reduction, consolidation of warehouse and studio facilities, the kick-off of technology migration, and renegotiated service contracts. The pending sale of THE OUTNET assets for $30 million is intended to allow a sharper focus on the core YOOX turnaround.
Updated Guidance and Analyst Estimates
The company narrowed its full-year FY26 guidance, now expecting Gross Merchandise Value (GMV) of €2.5-2.7 billion (up from €2.4-2.7 billion) and an adjusted EBITDA margin between -1% to +1% (improved from -2% to +1%).
Looking ahead, analyst estimates for the next quarter (Q3 FY26) project sales of €698.0 million and an EPS loss of €0.10. For the full fiscal year 2026, the current analyst consensus anticipates sales of €2.57 billion and an EPS loss of €0.47. LuxExperience's updated EBITDA guidance, when considered alongside these EPS estimates, implies that significant depreciation, amortization, and interest costs are expected to keep the company in a net loss position for the year despite the improving operational profitability.
Conclusion
LuxExperience's second-quarter results validate that its ambitious integration and turnaround plan is moving in the right direction, with the return to group-level adjusted EBITDA being the most concrete evidence. However, the dual miss on revenue and earnings per share, coupled with the ongoing struggles at YOOX, underscore the magnitude of the task remaining. The market's positive pre-market reaction seems to reward the demonstrated operational progress and improved guidance, choosing to look through the quarterly earnings miss. The path to sustainable, group-wide profitability remains a multi-quarter story, with success heavily dependent on stabilizing the legacy YNAP businesses.
For a detailed breakdown of future earnings estimates and historical performance, view the earnings and estimates page for LuxExperience B.V. (NYSE:LUXE).
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any security. Investing involves risk, including the potential loss of principal.
