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

Greetings, and welcome to the Lux Experience first quarter of fiscal year 2026 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 first quarter of fiscal year 2026. With me today is our CEO, Michael Plieger. 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 on 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.lifeexperience.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 at the first quarter of fiscal year 2026 of Lux Experience. As a group, we have now become the clear digital multi-brand leader for luxury insuliers worldwide. We are perfectly positioned to benefit from the expected further growth of the digital luxury market, as well as from the ongoing consolidation process among the remaining players. As explained last time, LuxExperience reports on the basis of a new segment reporting structure. The three segments are Luxury MyTheresa, Luxury Net-A-Porter and Net-A-Porter, as well as Off-Trade. We are very pleased with the results of the first quarter. Across all three segments, we have delivered strong results and improvements. Mike Ariza continues to demonstrate our unique ability to deliver strong growth and profitability despite ongoing macro headlifts. Mr. Portier and Mr. Porter clearly show the first signs of the commercial turnaround, which will drive the new growth and profitability for the two store brands after years of decline. In the off-price segment, we anticipated a fundamental transformation by focusing on the healthy core, and I am pleased that we have been off to a fast start here also. We just announced that we have reached an agreement to sell the assets powering the platform to the O-Group LLC. Shareholders of the O-Group LLC include Joseph Addery and Ritesh Punjabi, CEO of Timeless Group of Companies. Both are renowned experts in the off-price luxury fashion sector. The divestment of the outlet assets is a strategic step in line with our transformation plan announced in May 2025. which strengthens the operating model by reducing complexity. We believe that we found a great new home for the OutMet, and we can now fully focus on the transformation of the Ux business and the disentanglement of off-price from the luxury businesses in the back end. This will allow us to also accelerate the buildup of an efficient infrastructure platform for Net-a-Porter and Mr. Poulter. The closing of the transaction with the O group is expected through Q1 of calendar year 2026, subject to certain closing conditions, including customary regulatory approvals and payment of the purchase price, which is subject to adjustments based on inventory levels at closing. As a result of the transaction, the off-price segment will purely refer to the business of use from now on, while we classify the outmet and discontinued operations as it is no longer considered part of our core financial performance. Let me now start by commenting on the MyTeresa business. We are extremely pleased with the outstanding results in the first quarter of fiscal year 2026. The ongoing and even accelerating momentum in the previous quarters demonstrates the strength of our business model, which focuses on wardrobe building, big spending, luxury customers. In Q1 of fiscal year 2026, we grew our net sales by plus 12.2% compared to Q1 fiscal year 25. In the United States, which is a key market for our business, net sales growth reached plus 21.9% in Q1 fiscal year 2026. The U.S. accounted for 23.1% of the net sales of our total business in the first quarter. In Europe, excluding Germany, we experienced, again, an excellent net sales growth of plus 14.1% in June 1, fiscal year 2024. Our clear focus on big spending wardrobe building customers is the fundamental driver of our outstanding growth and financial strength at MyTereza. In the first quarter of fiscal year 26, the top customer base at MyTereza grew by plus 10.2% compared to the prior year period, significantly higher than in previous quarters. Furthermore, the average spend per top customer, insurance at GMV, grew again by a very strong plus 15% in Q1 fiscal year 26 versus Q1 fiscal year 25. The average order daily last 12 months for MyTheresa increased by a remarkable plus 10.7% to a record 797 euros in Q1 fiscal year 26. demonstrating the success of our focus on selling full-price, high-end luxury products to top customers. The continued full-price focus at MyTereza is also evident with the again improved gross profit margin growing by 70 basis points in Q1 history year 26. Our success with big spending wardrobe-building customers makes MyTereza a highly desired partner for luxury brands. In the first quarter of fiscal year 26, we saw again many high-impact campaigns and exclusive product launches underlining Maitereza's strong relationships with luxury brands. We launched exclusive styles from the Ueva Fall-Winter 25 runway collection for womenswear and menswear, only available at Maitereza. as well as an exclusive womenswear Max Mara cashmere capsule collection only available at my delivery. We were the exclusive prelaunch partner for Brunella Cucinelli's Fall-Winter 25 collections and Calvin Klein collections for Winter 25 collection for womenswear and menswear. We also launched exclusive womenswear styles from Moncler's Fall Winter 25 collection, as well as exclusive styles from God's True Kashmir and Venya's Fall Winter 25 collection. In addition to creating desirability for our top customers with exclusive digital campaigns and product launches, We also create a viability and a sense of community for MyTeresa's top customers through unique money-can-buy physical experiences. In the first quarter, we hosted various top customer events, including a private diamond master class and a tailored styling session with Jessica McCormick at her Mayfair townhouse in London. Together with Givenchy, we celebrated Sara Berti's debut runway collection with a curated cocktail reception, a private exhibition tour, and an intimate dinner in Shanghai. She hosted a top customer cocktail in Madrid at the Rosewood Hotel and also held an exclusive Schiaparelli-style suite there. To celebrate London, Milan, and Paris Fashion Week, we invited top customers to various shows to experience the magic of one-way firsthand. Furthermore, we hosted style suites in London, the Hamptons, New Jersey, Singapore, Hong Kong, Warsaw, Frankfurt, and Zurich, presenting new collections in immersive, curated environments. Highlights in the United States included intimate dinners with Michelin-starred chefs in Aspen and Los Angeles. We hosted a New York Fashion Week after-party at the legendary Indochine with Calvin Klein Collections. We partnered with Loewe for an exclusive event at the Glass House in Connecticut, showcasing the brand's exclusive collection inspired by Joseph and Annie Alba. followed by an intimate dinner by chefs Riyad Nazar and Lee Hansen of Franchette. Furthermore, we hosted an exclusive two-day experience with Zegna in Turin, featuring an on-stage dinner with a private opera performance at Teatro Reggio, and next day, a lunch at the famous Ristorante del Cambio. In summary, we are extremely pleased with the nightly rate of business in the first quarter of fiscal year 26, and Martin will later show how the outstanding top-line results translated into very strong bottom-line results. Let me now comment on the luxury segment comprised of Metaportier and Mr. Porter. In the first quarter of fiscal year 26, we clearly saw the first signs of the commercial turnaround directly resulting from this. execution of a strategy that focuses on luxury customers seeking editorial inspiration and brand discovery, as well as a strict focus on full price selling. In Q150 or 26, net sales declined as expected by minus 10.8% versus Q150 or 25, the metaporte and Mr. Porter combined. United States declined by minus 10.7% and Europe, excluding the UK and Germany, by minus 3.6% in terms of net sales in Q1 fiscal year 26 compared to Q1 fiscal year 25. The net sales decline is still driven by too little investments into attractive new merchandise a year ago for the current fall winter season. For the next spring summer season, we can already see improved results. While the overall net sales declined for Mr. Pote and Mr. Porter combined, the average spend in terms of GMV per EIP customer, the so-called extremely important people, customers, grew by plus 4% in Q1 fiscal year 26 versus Q1 fiscal year 25. The average order value last 12 months increased by a remarkable plus 15.5% to 836 euros for Net-a-Porter and Mr. Porter combined in Q1 fiscal year 26. Finally, the gross profit margin increased by 130 basis points in Q1 fiscal year 26 for Net-a-Porter and Mr. Porter combined, driven by a higher share of full price sales among other factors. All these KPIs indicated an already much healthier business. In the first quarter of this year, 26, a renewed focus on high-impact campaigns and exclusive product launches were successfully initiated for Mr. Poitier and Mr. Porter with a clear focus on luxury customers looking for editorial inspiration and brand discovery. But the Porte launched an exclusive capsule with Jimmy Shoo focused on key boot styles for fall-winter 2025. But the Porte also launched an exclusive colorway of the iconic Clouet Paddington bag, which drove outstanding media engagement with audiences, as well as an exclusive on-trend animal print mini low-tongue bag. all drove commercial success and increased brand awareness as the destination for fashion discovery. Mr. Porter launched a for Winter 25 collection with an exclusive pre-launch for EIP customers. Mr. Porter also launched 13 exclusive styles from the collection and Mr. Porter both launched and Leon door as a new brand, each with exclusive capsule collections. Further new brand launches at Mr. Pote include Eleventi, Apresse, Morras, and Satoshi Nakamoto. Mr. Pote also continued to drive outstanding customer engagements through unique editorial content. The Oscar-nominated actress Emily Blunt was the cover star of Porter magazine, marking the most engaged Porter cover in the last 12 months. September also saw Netta Porter present season 10 of the Incredible Woman podcast series, celebrated with a private event in London hosted by international model, actress, and campaigner Mr. Porter's journal feature on Walton Goggins drove 14,500 visits to the journal section, whilst its video attracted 390,000 views on Instagram Reels. It was featured in media outlets, including People Magazine and The Hollywood Reporter. Partnering with such talent has proved effective in reaching new audiences, enhancing brand visibility, and driving traffic to the Mr. Porter site. Mr. Porter's film with actor Adam Brody modeling key design items has had 593,000 views. Metaportee created a number of unique experiences for EIPs, including a dinner in London, celebrating 25 years of Metaportee, to which top clients who have shopped with the brand for the last 25 years were invited. And throughout the new runway collections, Net-A-Porter hosted EIP dinners for its customers in all four fashion week cities, New York, London, Milan, and Paris. Mr. Porter hosted dinners in both New York and Hong Kong for high-profile EIP customers. He also invited to a dinner in London to celebrate its collaboration and exclusive capsule with Drake. In attendance were press influencers and EIP. A share of the proceeds from the capsule collection were donated to the Mr. Poulter Charity Health and Mind, which runs in partnership with Movember, which supports men's mental health. Six Story and Capsule Collection had the highest click-through rate from the homepage to product seen this quarter. Already, you can see that the new leadership team at Net-a-Porter and Mr. Porter is driving the creation of much healthier and resilient business model to regain financial strength and growth. Martin will later comment on the progress achieved in improving the profitability of the Net-a-Porter and Mr. Porter luxury sector. Lastly, let me comment on the stand-alone performance in Q1 of the year 26. We are pleased with the progress that we have achieved to separate the use business from the luxury of YNAB. The sale of the ultimate assets will allow us to accelerate the process of separation further. To create a lean business model that is compatible with the lower margin and lower average order value of price business, We are focusing the Ux business on the healthy core in terms of geography and operational fulfillment models. The closure of the marketplace business, warehouses, and in Hong Kong, as well as the optimization for higher tariff rates shipping to the United States causes a deliberate net sales decline in the short term, but will allow to return to solid profitability. In Q1 fiscal year 26, net sales declined as expected by minus 16.5% versus Q1 25. Europe, including Germany, increased by plus 1.7% in terms of net sales in Q1 fiscal year 26 compared to Q1 fiscal year 25. The overall net sales decline is, as explained, mainly driven by a renewed focus on the healthy core for the UK's business. While the overall net sales declined for weeks, the top spending customer average spend in terms of GMV grew by just 4.7% in Q150 at 26 versus Q150 at 25. The average order value last 12 months increased by a remarkable plus 17.8% to 256 euros for years in Q150 at 26. Finally, the gross profit margin increased by 400 basis pounds in Q1 fiscal year 26 for use compared to the prior year period, driven mostly by last year effects and also a higher share of first price sales. All these KPIs indicate a clear focus on the healthy part of the customer base. As part of the transfer of the assets to the A group, Lux Experience will, for a certain period after closing, provide certain operational IT services all priced at cost level to the buyer. Latest by the end of calendar year 26, all services and activities in relationship to the outlet will have stopped for Lux Experience, significantly reducing the complexity in the And now, after having reviewed the good commercial results and improvements across all businesses, I hand over to Martin to discuss the financial results in detail.