LuxExperience B.V. American Depositary Shares, each representing one Ordinary Share

Greetings and welcome to the Lux Experience fourth quarter and full fiscal year 2025 earnings conference call. At this time, all participants are in a 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 Lux Experience. Thank you, sir. Please begin.

Thank you, Operator. and welcome everyone to the Lux Experience investor conference call for the fourth quarter and full fiscal year 2025. With me today is our CEO, Michael Klieger. 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 IFS on this call. You can find reconciliations of these non-IRFS 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 Lux Experience. As you know, we successfully closed the acquisition of Jux Net Apport on April 23rd. Under the new name Lux Experience, we now operate the leading global digital multi-brand luxury group. Lux Experience 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 women's wear, men's wear, kids wear, fine jewelry and watches, as well as lifestyle products. Jukes 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 three segments are Luxury MyTheresa, Luxury Net-a-Porter and Mr. Porter, as well as Off-Price, which is comprised of YUX and the OutNet. As the transaction closed on April 23rd, the performance of the two 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-month period ending June 30th, 2025, even though our financial reporting for the Lux Experience Group reflects the contribution from the acquired businesses only for the periods 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 Lux Experience Group which is built on strong store brand differentiation while enabling significant cost efficiencies in the joint infrastructure for the luxury businesses and the separated infrastructure for the off-price businesses. We managed to have a very fast start and have already made significant changes to the YNAB structure, processes, and infrastructure since the completion of the acquisition in April. We have initiated cost reduction actions across all operations functions. This relates to changes of the global warehouse footprint and fulfillment models, the customer service provider landscape, and a global renegotiation of carrier contracts, all yielding significant savings going forward for the group. The technology migration for luxury as well as the simplification of a separate off-price tech stack has also started and we have fully validated our expectations for the time and effort needed that we had before the acquisition. We have also already enabled customer data analytics across the group by creating a joint data analytics layer on top of the different data platforms. We have come already a long way in the transformation of the group finance and HR functions, supporting the new operating model and driving significant G&A savings going forward. Finally, we have announced partial workforce reductions across YNAB that are subject to the completion of applicable information and consultation processes. All these actions aim to regain financial strength after years of decline for YNAB. We are very pleased with the fast start of the transformation to leverage the scale and scope for strong growth and profitability for the whole group. Medium term, we expect therefore to reach Euro 4 billion in net sales and an adjusted EBPA margin of 7% to 9% for the group. Max Experience is in a remarkable position to become the one and only destination for luxury enthusiasts worldwide. Let me now comment on the MyTeresa business, the main driver of our financial performance in fiscal year 2025. We are extremely pleased with the results of our MyTeresa business. confirming again our unique ability to deliver profitable growth despite ongoing macro headwinds. We clearly demonstrated the strengths of our business model, which focuses on wardrobe building, big spending, luxury customers. In Q4 fiscal year 25, we grew our net sales by plus 11.5% compared to Q4 fiscal year 24. And for the full fiscal year 25, by plus 8.9% compared to full fiscal year 24. This was an acceleration over the results of the third quarter, and we closed the year fully in line with our given guidance. In the United States, the MyTheresa business generated a net sales growth of plus 6.4% in Q4 fiscal year 25 compared to Q4 fiscal year 24. For the full fiscal year, the US accounted for 20.6% of net sales of our total business. In Europe, excluding Germany, we experienced an excellent net sales growth with plus 19.4% in Q4 fiscal year 25 compared to the prior year period. This growth of myTheresa was again driven by our resilient and loyal top customers. The top customer base of MITREVA grew by plus 3.6% in the fourth quarter compared to the prior year period. More importantly, the average spend per top customer in terms of GMV grew by plus 16.1% in Q4 fiscal year 25 versus Q4 fiscal year 24 and plus 15.9% for the full fiscal year 25. As a consequence of our successful strategy at MITREVA, Our top customers accounted for 3.8% of all customers and numbers, but for 42.6% in terms of total GMV in fiscal year 2025. The average order value last 12 months for my Teresa increased by a remarkable plus 10% to an outstanding 773 euros in Q4 fiscal year 2025. demonstrating the success of our focus on selling full-price, high-end luxury products to top customers, including our successful expansion of our fine jewelry offer. This high average order value also provides further economic leverage that we also use, for example, to invest further in our unboxing experience with added gifting for kids' wear orders and branded hangers as well as garment bags for high-value ready-to-wear items. The continued focus of MyTheresa on selling full price is also evident with the again improved gross profit margin growing by 90 basis points in Q4 fiscal year 25. For the full fiscal year 2025, the gross profit margin grew by 130 basis points Our excellent customer service proposition is highlighted by our internally measured net promoter score of 82.6% in Q4 of this year 25, showing our consistently outstanding customer satisfaction. Our success with big spending wardrobe building customers makes MyTheresa a highly desired partner for luxury brands. The fourth quarter of this year 25, We saw again many high-impact campaigns and exclusive product launches, underlying also MyTheresa's strong relationships with luxury brands. We launched the exclusive Dolce & Gabbana Taumina capsule collection for womenswear and kidswear, only available at MyTheresa. We launched also high summer exclusive capsules with Pucci, Versace, Chloe, La Dublige, and Missoni for women's wear. All only available at MyTeresa. We were the exclusive pre-launch partner for the Alaia Archetype Collection, Valentino's Etefoo capsule collection, as well as the Rose Fall Winter 25 collection, for womenswear and menswear. We also launched exclusive womenswear bags and shoe styles from Bottega Veneta's pre-fall 25 collection and exclusive womenswear and menswear styles from Prada's new season collection. In addition to creating desirability for our top customers with exclusive digital campaigns and product launches, We also create desirability and a sense of community for MyTheresa's top customers through unique money can buy physical experiences. We aspire to constantly engage with our top customers across the globe to build strong, long-lasting relationships. In the fourth quarter, we hosted various top customer events, including an intimate afternoon tea with Patou at the private apartment of the creative director Guillaume Henry. We celebrated a De Vaux pop-up at the Maite Reza store in Munich. We invited top customers to a dinner and shopping experience with Prada at the Roundtree Hotel in Ammerganfurt. Further highlights in the United States included a private behind-the-scenes viewing of the Boston ballet's rehearsal of Romeo and Juliet, and the private tour at the Frieze Art Exhibition at Huxley Arts, hosted in collaboration with Stone Island. In Shanghai, we created an unforgettable experience around Sarah Burton's debut runway collection together with Givenchy. In the spirit of being a community for luxury enthusiasts, We hosted a two-day Taomina experience in Sicily with Dolce & Gabbana in attendance of Alfonso Dolce. We invited guests to a dinner at the famous San Domenico Palace and a Sicilian market experience at Taomina Central Market. Another highlight was our two-day room experience with Acquazur, including a private dinner at the Cinecittà film studio attended by Edgardo Osorio, founder and creative director of Acquazua. We also hosted a Mediterranean escape in Ibiza with Missoni, including a boat tour and pool party. Finally, we invited clients to Naples to attend a private fashion show with Kiton and learn about the sartorial craftsmanship of the brand. In summary, we are extremely pleased with the results of the MyTheresa business. We have demonstrated clear operational and financial leadership in an otherwise struggling sector, and we have also underlined that we have the expertise of Lux Experience to achieve profitable growth in digital luxury. Let me now comment on the luxury segment comprised of Net-a-Porter and Mr. Porter. As stated in our investor presentation, both Net-a-Porter as well as Mr. Porter are truly iconic digital luxury brands that have distinct high-end customers quite different from the MyTeresa customer base. Our key strategic priority will be to strengthen the unique identities of the brands and maintain the differentiation for MyTeresa. A renewed, clear focus on luxury customers looking for editorial inspiration and brand discovery, as well as a focus on full price selling, will be fundamental for the turnaround at Net-a-Porter and Mr. Porter. Of course, reduced cost of operation will also be needed. In Q4 fiscal year 25, net sales declined by minus 8.9% versus Q4 fiscal year 24 and by minus 10.9% for the full fiscal year 25 compared to full fiscal year 24 for Net-a-Porter and Mr. Porter combined. The United States with minus 8% and Europe excluding the UK and Germany with minus 6.5% saw similar decreases in terms of GAV in Q4 fiscal year 25 compared to Q4 fiscal year 24. While the overall top line declined, The average order value last 12 months increased by plus 14.5 percent to 811 euros for MetaPorter and Mr. Porter combined in Q4 fiscal year 25. The gross profit margin remained almost stable in Q4 fiscal year 25 for MetaPorter and Mr. Porter combined compared to the prior year period. Going forward, the clear strategy will be on a renewed focus on high end big spending customers and on full price selling, both fully in line with our group strategy. The immediate priority after closing the acquisition has been to appoint highly experienced and strongly driven leadership teams at Net-a-Porter and Vista-Porter after years of decline. Both store brands now have outstanding dedicated leadership teams in place. This needed change was done in record speed. Under the leadership of Net-a-Porter's new CEO, Heather Kamenetsky, who significantly drove MyTereza's U.S. growth since 2021, new Chief Buying and Merchandising Officer, Brigitte Chartrand, and new Chief Brand and Customer Officer, Claudia Plant, are engineering the successful return of Net-a-Porter's global appeal and customer passion based on editorial authority and luxury fashion discovery. No less pivotal is the return of co-founder Toby Bateman as CEO to Mr. Porter. Under his leadership, Jeremy Langmead as new brand director, Daniel Todd as buying director, and Cassandra Baxland as new customer director are charting the course of Mr. Porter to regain its unique leadership position as the only global menswear digital luxury destination. While we expect net sales to continue to decline in the short term for Net-a-Porter and Mr. Porter based on a lack of marketing spend in the past as well as too little investments into the buying of attractive new merchandise, the new leadership team in place And a radical transformation program will soon bear fruit and create a much healthier and resilient business model. Lastly, let me comment on the off-price segment, comprised of yukes and the outset. Both store brands have suffered the most from a lack of dedicated resources, marketing spend, as well as low investments in attractive new merchandise. Furthermore, the off-price businesses shared infrastructure and resources with the luxury businesses, which did not really fulfill the needs of a lower margin off-price business model. As stated in May, only by separating off-price from luxury and by decisively streamlining the businesses will the vicious cycle of declining revenues and decreasing investments be stopped. In Q4 fiscal year 25, net sales declined by minus 17.4% for Jukes and the Outlet combined. For the full fiscal year 2025, the decline was minus 13.2% compared to full fiscal year 24. The United States with minus 21.8% and Europe excluding the UK and Germany with minus 15.6% saw similar negative developments in terms of GMV for Jukes and the Altnet for Q4 fiscal year 25 compared to Q4 fiscal year 24. As for the other businesses, the average order value last 12 months for Jukes and the Altnet combined increased by plus 17.4% to 292 euros. The gross profit margin decreased in Q4 by 490 basis points compared to the prior year period. This was mostly driven by the shutdown of the Jukes marketplace business as well as clearance activities during this quarter. Fully in line with our strategy, we have already taken very clear action since the closing of the acquisition of YMO. Separate leadership teams have been put in place and confirmed for Jukes and the output. Dedicated brand and marketing functions separate from luxury have been built up. infrastructure resources and processes in finance hr operations and most importantly in technology are being separated from the luxury segment and streamlined to create the lean operating model required for the off-price business select operational and administrative structures are being consolidated and workforce reductions have been announced A group remains fully committed to Italy for EUGS and the United Kingdom for the Altnet as their respective headquarters. All these measures will help us to regain growth and financial strength after years of decline for the off-price businesses. And now, I hand over to Martin to discuss the financial results in detail.