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

Greetings and welcome to the Lux Experience third 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 third quarter of fiscal year 2026. With me today is our CEO, Michael Klieger. Before we begin, I would 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-IFS financial measures in our earnings press release, which is available on our investor relations website at investors.laxexperience.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 third quarter of fiscal year 2026 of NAC's experience. We are very pleased with the results of the third quarter. We are making great progress with the ongoing transformation as a group. We achieved a GMV growth of plus 0.3% at constant currency in the third quarter, despite the outbreak of war in the Middle East in March. We also achieved a profitability at group level of plus 0.9% in adjusted EBTA margin, which is the second profitable quarter in the row. Finally, we achieved again significant improvements on many KPIs across all three business segments, underlining the successful execution of our transformation plan. We are fully on track and will achieve our guided results for the full fiscal year 2026. Our success story with our MyTheresa business continues as we outpace the market in terms of growth and further improved our profitability despite the geopolitical headwinds in March, which in the meantime have subsided for our resilient customer base. We also saw further improvements at Net-a-Porter and Mr. Porter, driven by the new strategic focus on customer service, full price selling, and cost disciplines. At Jux, our strategy of focusing on the healthy core of the business and the good progress in implementing a leaner operating model continues to show clear results in line with our expectations. In addition to our guidance for fiscal year 2026, we therefore also confirm our medium-term target for the Group with net sales of EUR 4 billion and an adjusted EBTA margin of 7 to 9%. Just to provide context for the Euro 4 billion net sales medium term target, the most recent Bain and Altagamma report estimates the global online luxury market at 75 billion euros. Overall, LuxExperience is the clear digital multi-brand leader for luxury enthusiasts globally. and we are perfectly positioned to benefit from the sustained growth of digital luxury and the ongoing consolidation within the sector before reviewing the performance of the third quarter further i also want to mention that we have successfully closed the sale of the set of assets powering the outlet on april 30th following the binding agreement announced last october We are very confident to have found the right new home for the Outnet, and we now are able to solely focus on our Ux business in off-price. Let me now comment on the performance of the MyTheresa business in more detail. We are very pleased with the strong results in the third quarter of FISCIA 2026, which are fully in line with our expectations. MyTheresa's clear focus on wardrobe building, big spending, luxury customers and their needs through inspiration by curation, highest quality service and community building with physical events drove again strong, profitable growth. Our very resilient, consistent business model and excellent execution allowed us to achieve this despite the headwinds from the outbreak of war in the Middle East. In Q3 of fiscal year 2026, MyTheresa grew its net sales by plus 9.9% on a constant currency basis compared to Q3 of fiscal year 2025. The first nine months of fiscal year 2026, net sales grew by plus 12.0% on a constant currency basis. In the United States, which is a key market for growth, net sales growth reached plus 33.8% on a constant currency basis. in Q3 fiscal year 26 compared to Q3 fiscal year 25. In the third quarter, the US accounted for 25.8% of net sales of our total MyTheresa business. While we saw in March the impact of the war in the Middle East on customer sentiment globally, we have already seen again strong growth in the business in the last week. This proves the resilience of our business model as our clients are globally mobile and dipped in sentiment are mostly short-lived. MyTheresa's financial strengths and continued growth are driven by its outstanding customer base. In the third quarter of fiscal year 2026, the top customer base of MyTheresa grew by plus 18.6% compared to the prior year period. Furthermore, the average spend per top customer in terms of GMV remained quite stable with minus 1.5% in Q3 versus Q3 fiscal year 2025. The average order value last 12 months for MyTheresa increased by plus 12.5% to a record high €847 in Q3 fiscal year 26, demonstrating the success of our focus on selling full-price, high-end luxury products to top customers. Furthermore, MyTereza's gross profit margin grew by 240 basis points in Q3 fiscal year 2026, which further underlines our successful strategy of full-price selling. Lastly, MyTheresa's customer satisfaction, which we measure by our internal net promoter score, reached 86.8% in Q3 fiscal year 26, representing the highest quarter score in the last four years. All these figures serve as a testament to the fundamental strengths of our MyTheresa business. Our success with big spending wardrobe building customers makes MyTheresa a highly desired partner for luxury brands. In the third quarter of Fiskia 2026, we saw again many high-impact campaigns and exclusive product launches underlining MyTheresa's strong relationships with luxury brands. We were the exclusive pre-launch partner for Demna Gvasali's debut as creative director at Gucci with the La Familia collection for women and menswear. We also pre-launched styles of Balenciaga and Alaia's runway collections, as well as of Saint Laurent's Summer 26 collection. We launched exclusive runway looks from Loewe and Bottega Veneta's Spring Summer 26 collections for womenswear and menswear. It is also very noteworthy that we launched the namesake brand of Phoebe Philo on our website in March. Please see our investor presentation for more details on these capsules and exclusives. In addition to creating desirability for our top customers with exclusive digital campaigns and product launches, MyTheresa also creates desirability and a sense of community for the top customers through unique money can buy physical experiences. Highlights included an intimate Valentine's Day cocktail Maite Reza hosted together with Kate in attendance of the creative director, Kate Holstein, at Bemerman's Bar in New York. In Florence, Maite Reza created a one-day experience with Gianvito Rossi for his namesake brand. Guests enjoyed a private visit to Palazzo Vecchio, followed by a garden welcome and dinner at Villa Cora. Another highlight was an industry cocktail event in Shanghai that we hosted for executives and key partners from leading luxury brands at the iconic Spago Shanghai, reinforcing MyTheresa's commitment to further strengthen its presence in the Chinese market. Finally, MyTheresa continued to offer guests a captivating experience at the Maison MyTheresa pop-up in St. Moritz. The setting brought Maite Reza's world to life through trunk shows, presentations, and workshops for invited guests. Please see our investor presentation for more details on these unique money can buy experiences. To sum it up, Maite Reza delivered strong profitable growth, fully in line with our expectations in the third quarter. We see this as further proof of the strength of our business model and consistency of our execution. Martin will later show how the strong top line results translated into excellent bottom line results. Let me now comment on the luxury segment comprised of Netta Porter and Nista Porter. In the third quarter of Hispia 2026, we saw continued improvements as a direct result of the new strategic focus on full price selling, cost discipline, and on customers seeking editorial inspiration and brand discovery. In Q3 fiscal year 2026, net sales declined by minus 5.1% on a constant currency basis versus Q3 fiscal year 25 for Net-a-Porter and Mr. Porter combined. In the first nine months of fiscal year 2026, net sales declined by minus 1.6% on a constant currency basis. Europe, excluding the UK, increased by plus 4.3% in terms of net sales in Q3 fiscal year 2026 compared to the prior year period. The overall net sales decline was driven by the ongoing strategic focus on higher value customers and the reduction of promotions compared to Q3 fiscal year 25. While we saw in March also the impact of the war in the Middle East on customer sentiment globally, we see again solid growth for Net-A-Porter and Mr. Porter in the weeks since end of March, thanks to the resilience of our customer base to such exogenous shocks. While the overall top line for Net-a-Porter and Mr. Porter combined declined in Q3 fiscal year 26, the average spend in terms of GMV per EIP, the so-called extremely important people, was quite stable with only minus 1.4% in Q3 fiscal year 26 versus Q3 fiscal year 25. The average order value last 12 months again increased by plus 7.9% to 865 euros for Net-a-Porter and Mr. Porter combined. The gross margin increased by a high 700 basis points in Q3 fiscal year 26, driven by a higher share of full price sales and significantly reduced discount activities versus last year's period. The customer satisfaction at Net-a-Porter, measured by our internal net promoter score, has seen a consecutive improvement from 62.3% in Q1 to 65.3% in Q2 and now 68.1% in Q3, which is an increase by plus 890 basis points compared to Q3 fiscal year 25. The secret sauce of Lux experience is clearly showing its effect. All these KPIs point to a significantly improved health and quality of the business of Net-A-Porter and Mr. Porter combined. In the third quarter of fiscal year 2026, Net-A-Porter and Mr. Porter continued to drive customer engagement through uniquely engaging editorial content and unique EIP experiences. Net-A-Porter invited VIPs, tastemakers, and EIPs to an exclusive three-day winter experience, including snow-throwing, stargazing, and evenings at a hidden speakeasy cabin in the newly opened one-and-only resort in Big Sky in Montana. During fashion month, Netta Porter celebrated New York Fashion Week with a dinner hosted with Willy Chavarria. Attending guests included Julia Fox, Jack Harlow, Becky G, Tove Lo, Lindsay Monteiro, to name just a few. During London Fashion Week, Net-A-Porter partnered with Jonathan Anderson for a private tour of his brand new JW boutique exclusively for Net-A-Porter EIPs. Moreover, Net-A-Porter launched its spring-summer 26 campaign, Le Virage, in March. The series of video-first vignettes, storytelling, and celebrating the new season's key fashion achieved a global media reach of over 64 million impressions. Mr. Porter featured exclusive interviews with Hollywood icons John Hamm and Kit Harington on the Mr. Porter Journal. John Hamm's story reached 2.4 million views on Instagram. A video story about Danish brand NN07 reached over 5 million views. Mr. Porter also created global EIP events, including a two-day immersive style suite in Hong Kong, a co-hosted brand dinner with bespoke shoemaker George Cleverley in Miami, and invited 10 guests to an intimate lunch hosted by Sir Paul Smith in London. Mr. Porter also launched exclusive capsules such as a 48-piece capsule with Brunello Cucinelli. Please see our investor presentation for more details on Netta Porter and Mr. Porter's unique editorial content and exclusive events. In summary, the third quarter has seen further sequential improvements at Netta Porter and Mr. Porter, fully in line with our ongoing transformation plan for both businesses despite the headwinds from the war in the Middle East in March. That, by the way, have already decreased significantly in recent weeks. Martin will later provide more details on the progress achieved in bringing the Net-a-Porter and Mr. Porter luxury segment back to profitability rather soon. Lastly, let me comment on Luke's performance in the third quarter of his year, 2026. We are pleased with the progress of the ongoing transformation of Jukes, including a focus on core countries and the implementation of a leaner operating model to better serve the lower margin and lower AOV nature of the off-price business. In parallel, Jukes celebrated a brand rebirth with the successful launch of its new brand identity in line with its new strategy and positioning. In Q3 fiscal year 2026, net sales declined by minus 7.4% on a constant currency basis, versus Q3 fiscal year 25 for EUX. In the first nine months of fiscal year 2026, net sales declined by minus 8.9% on a constant currency basis. In Europe, excluding the UK, a clear geographic focus going forward net sales increased by plus 7.0% compared to Q3 fiscal year 25. The overall net sales decline is mainly driven by the reduction of weight of overseas markets with high costs to serve, in line with the renewed focus on a healthy geographic core for the youth's business. While the overall net sales declined for Jukes in Q3 fiscal year 26, the top spending customer average spend in terms of GMV grew by plus 1.3% in Q3 fiscal year 26 versus Q3 fiscal year 25. The average order value last 12 months increased by plus 1.7% to 247 euros in Q3 fiscal year 26. The gross profit margin increased by 620 basis points to 37.5% in Q3 of year 26, as compared to 31.3% in the prior year's quarter, demonstrating the success of the new strategic focus on the healthy core. Jukes customer satisfaction measured by our internal Net Promoter Score reached 48.8% in Q3 fiscal year 26, increasing by plus 1,270 basis points compared to Q3 fiscal year 25, showcasing also the effect of the Lux Experience Secret Sauce on Jukes customer service operations All the ABAS KPIs indicate that the focus on the healthy core of the Jukes business is bearing fruits. In the third quarter of fiscal year 26, Jukes celebrated the rebirth of its new brand identity in line with its new strategy and positioning. Jukes unveiled its future color scheme, proprietary layouts, and a renewed tone of voice in March. The rebranding has been rolled out on digital channels with full implementation, including new app and website interfaces and offline packaging planned until the end of the year. The brand rebirth story drove strong media coverage. Please see our investor presentation for more details on the new brand identity. Moreover, Jukes leveraged cultural moments across Milan and Berlin, create memorable experiences signaling the brand's rebirth. In Berlin, Jux, together with Sleek Magazine, hosted an exclusive party during Berlin Fashion Week at the famous Borchardt Restaurant that seamlessly blended design, cultural relevance, and community. During Berlinale, Jux challenged the imagination through a movie-inspired experience at the Italian Embassy Party In Milan, Jukes hosted its timeless brand event, unveiling Camerino, a fitting room installation and new stage for self-expression, creativity, and reinvention. The event brought together KRLs from the fashion industry and lifestyle media at Palazzina Appiani at the heart of Milan Fashion Week. During Milan Design Week, Jukes introduced El Camarino, unveiled by Keta Barth. The project was selected as one of the district's highlights and was introduced during the official press conference. All events boosted customer engagement through community building, delightful experiences, increased the guests' emotional bond with Jukes, and generated reach on social media and press coverage. Please see our investor presentation for more details on these events. To sum it up, the focus on a healthy core for Jukes continues to show clear improvements in line with our expectations, and the brand rebirth of Jukes with a new brand identity and new customer focus has only just begun. Let me now also provide you with a quick overview on the application and usage of AI at Luxury Experience as we have received questions on our approach to this technological seismic shift. For a long time, we have used intelligent algorithms to optimize our customer targeting and marketing spend based on predictive models for customer value estimates. With the revolution of generative AI, we have expanded widely the usage of algorithms to improve the customer experience with better and more personalized real-time content, such as product and newsletter records, on-site search, on-site merchandising, as well as product copy and imagery. We are live here based on our partnership with Google Vertix. We are also seeing huge benefits in software development to support our aggressive tech transformation roadmap at Net-a-Porter and Mr. Porter. We are constantly expanding the use case scenarios with a clear focus on improving the quality and accuracy of our customer experience. Please see our investor presentation for more details on the usage of AI at Lux Experience. And now. After having reviewed the very good commercial results and improvements across all our businesses, I hand over to Martin to discuss the financial results in detail.