MYT Netherlands Parent BV ADR

Greetings and welcome to the MyTheresa Second Quarter of 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. We ask that you please limit your questions to one and one follow-up. In order to ask a question, simply press star followed by the number one on your telephone keypad. It is now my pleasure to introduce your host, Martin Beer, MyTheresa's Chief Financial Officer. Thank you, sir. Please begin.

Thank you, operator, and welcome, everyone, to Mitrice's investor conference call for the second quarter of fiscal year 2025. With me today is our CEO, Michael Kliger. 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 a 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.mytresa.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. Today, we will comment on the results and performance of our second quarter of fiscal year 2025. We are very pleased with our results in a still volatile macro environment. With strong accelerating revenue growth and positive significantly improved adjusted EBITDA in the second quarter, we continued our very positive business momentum from the previous quarter and have achieved a significant step up in financial performance. In H1 of fiscal year 2025 compared to H1 of fiscal year 2024, we believe that there are clear signals for an improving overall luxury market, while, of course, concerns remain for the macro environment. We have reaffirmed our leadership position in terms of financial performance and reputation in digital luxury. Our clear focus on the high spending, wardrobe building top customers sets us apart and allows us to win market share and grow profitably. Strong top customer revenue growth An outstanding average order value and excellent customer satisfaction scores demonstrate our relentless customer focus, which is a key success factor for MyTheresa. We continue to be very excited about the expected acquisition of YNAB. This acquisition will allow us to create a global digital luxury platform across multiple highly distinguished storefronts. We believe we will be able to generate significant synergies in using a joint backbone, but most importantly, we will have one of the most relevant overall value propositions for global luxury shoppers and brands. We continue to expect closing of the transaction in the first half of calendar year 2025. Today, I wish to highlight Three key messages to you that set us apart in the second quarter and clearly demonstrate the continued success of the MyTheresa business despite the ongoing macro uncertainty. First, with our distinctive business model focusing on big spending, wardrobe building, luxury shoppers, we showed that we are fully on track for strong, profitable growth for full fiscal year 2025. Second, we clearly demonstrated again that MyTheresa builds a community for true luxury enthusiasts and creates desirability through digital and physical experiences, which makes us highly attractive for true luxury brands to partner with. Third, we are well positioned and equipped to create a leading global digital luxury group of enormous reach and relevance with the expected acquisition of YNAB. Let me now comment in more detail on these three messages. First, the second quarter demonstrated again our unique ability to generate profitable growth based on our distinctive business model, focusing on the wardrobe building big spending. In Q2 of fiscal year 2025, we grew our GMV by plus 11.9% compared to Q2 fiscal year 2024. We achieved a strong net sales growth of plus 13.4% in Q2 of fiscal year 2025 compared to Q2 of fiscal year 2024. We are fully on track to achieve our outlook for the full fiscal year 2025. The United States continues to be a significant growth driver for our business. We saw again a double-digit net sales growth of plus 17.6% in Q2 fiscal year 25 compared to Q2 fiscal year 24. And the U.S. accounted for 20.6% of total net sales of our business in the second quarter of fiscal year 25. Our highly curated selection of true luxury brands resonates very well with the big spending US luxury customers looking for multi-brand inspiration. And we continue to see the market as a major source for future growth. In Europe, including Germany and the UK, we also experienced a strong double-digit net sales growth of plus 12.8% in the second quarter of fiscal year 25 compared to the second quarter of the previous year. while results in China and Asia continue to be impacted by the ongoing macro headwinds and uncertainties. Our clear focus on big-spending, wardrobe-building customers is the fundamental driver of our continued success. Our GMV with our top customers grew by plus 9.1% compared to Q2 of fiscal year 24. This was largely driven by an increase of the average spend in terms of GMV per top customers by plus 13.6% compared to the same period last year. In the United States, our business with top customers in terms of GMV grew by plus 34.7% in the second quarter of fiscal year 2025. Martin will talk in a few minutes about the details of our bottom line results for the second quarter, but let me provide you already with some key operational highlights. We achieved excellent customer satisfaction measured by our internal net promoter score that reached an outstanding 83.3% in Q2 fiscal 25, demonstrating the consistent excellence of our customer services proposition. Our average order value last 12 months increased by plus 9.5% to Euro 736 in Q2 fiscal year 25, demonstrating the success of our focus on selling high-end luxury products to top customers. Furthermore, we reported stable return rates and improving cost ratios in the second quarter of fiscal year 2025. All these are progression highlights. the fundamental strengths and the consistent performance of our business model. Second, the second quarter clearly showed that MyTheresa builds a community for true luxury enthusiasts and creates desirability through digital and physical experiences. This makes us highly attractive for luxury brands to partner with us. The second quarter saw many high-impact campaigns and exclusive product launches that drove our global business with high-spending wardrobe-building customers. We launched exclusive womenswear and menswear runway looks from Moncler Grenoble, as well as exclusive bags of accessories from Eva Sonia Fujita Collection for womenswear, menswear, and life. We launched an exclusive womenswear capsule collection by Victoria Becker. only available at MyTheresa. We were exclusive partner for launching the Women's Wear Miu Miu Ski Collection, only available at Miu Miu and MyTheresa. And we exclusively offered our top customers early access to the Women's Wear Gucci Holiday Collection. We were exclusive pre-launch partner for Kate's Resort 2025 Collection and Alaya's Archetypes Collection. Finally, I wish to mention that we launched an exclusive menswear evening wear collection from Loro Piano. Please see our investor presentation for more details on brand collaborations in the second quarter. Another very recent and noteworthy collaboration is the launch of Bvlgari Fine Jewelry & Watches in Monterey. With the prestigious Italian Maison Bvlgari, we are further extending our fine jewelry This latest brand partnership is a clear testimony and reinforcement of our clear focus on high spending top customers. In addition to creating the viability for our top customers with exclusive digital campaigns and product launches, we also hosted, again, many events and physical experiences for our top customers, some of which were true money-can't-buy experiences. We aspire to constantly engage with our top customers across the globe to build strong, long-lasting relationships. In the second quarter, we hosted various top customer events, including style suites in New York, Singapore, Toronto, and Miami. We also invited top customers to a multi-day style suite event at the Nature Discovery Park on the rooftop of K11 Museum in Hong Kong. We arranged an intimate cocktail event for top customers in Jeddah and an intimate dinner in Abu Dhabi. Top customers were invited to an exclusive Parisian experience with Berluti in Paris that included a private tour of Berluti's renowned Shu Atelier. We also hosted an elegant cocktail reception and dinner with the Attico at the iconic Saint Ambroise in Milan in attendance of both designers, Giulio Ambrosio and Giorgia Tordini. Together with Oscar de la Renta, we hosted a dinner at the Hia Hubs in Riaz in attendance of the designers Fernando Garcia and Laura Kim. Another highlight was an intimate cocktail and dinner with Victoria Beckham at Coco Duck in New York to celebrate the launch of the third exclusive Victoria Beckham x my teresa capsule collection we also hosted several fine jewelry events including a cocktail at lamitage beverly hills and an exclusive event with the fine jewelry brand yeprem in new york please see our investor presentation for more details on our various exclusive events around the world and the second quarter As always, the absence highlights for our top customers were amazing, true money can buy experiences that we created for them in the spirit of being a community for luxury enthusiasts. We invited guests to an unforgettable mountain experience with Zegna between the scenic Biela Alps of Piedmont and the culinary treats of Milan. Guests were welcomed to Oasi Zegna, where they immersed themselves into the history and craftsmanship of Zegna through a private tour of the house's wilderness. The visit continued to the founder's villa, Hermene Gildo Zegna, where guests enjoyed a lunch inspired by the family recipes of Nina Zegna. The experience concluded with an intimate dinner in Milan in attendance of artistic director Alessandro Sartori. Another highlight was an exclusive multi-day Nordic winter experience with Montclair Grenoble in Oslo. Over two days, our guests were invited to various unique moments, including a cocktail reception and dinner at the iconic contemporary Oslo Opera House, followed by snow activities at Skimore Park Ski Resort the day after. In the United States, we have just announced that we will team up with Bemelmann's Bar historic New York bar, an exclusive invite-only pop-up in Aspen. Together, we are creating an immersive apres-ski experience, bringing luxury fashion and Bemelmann's signature martinis to Aspen from February 14th through March 2nd. In addition to providing our top customers with memorable experiences, all these events also created global brand awareness for MyTheresa through press and social media amplification. Third, we see ourselves well positioned and equipped to create a leading global digital luxury group with enormous reach and relevance with the expected acquisition of Jukes Net-a-Porter. We will be home to some of the most distinguished digital store brands in the world. MyTheresa and the brands Net-a-Porter, Mr. Porter, Jukes and the Outnet all individually have earned a strong reputation in the luxury industry for their pioneering roles in innovation authoritative editorial voice and curation as well as high quality customer service all store brands stand for clearly differentiated but complementary multi-brand offerings for luxury customers worldwide we are committed to further strengthen and develop the unique store brands and their identities within the group by building on their heritages while fostering synergies in the back of house. We expect closing of the transaction in the first half of 2025. As we enter a new and exciting phase of our company, we have decided to form the new group under the new brand name Lux Experience, which will replace mighty Netherlands parent EV as our group name upon closing. This new name clearly underlines our unique focus on creating desirability for luxury enthusiasts with digital and physical experiences. Lux Experience will serve as a unifying symbol, reflecting the core values of a strong customer focus, a highly curated edit and inspiration, as well as the creation of their viability through unique digital and physical experience. Of course, we will continue to serve our customers with our well-known and highly loved brand name, MyCarré. We will continue to be listed on the New York Stock Exchange with the trade name LuxExperience and the new ticker symbol of LUX, L-U-X-E. That will replace the current ticker symbol, myTMYTE. LAC's experience will present the most exciting opportunity for investors worldwide to participate in the huge market opportunity in digital multi-brand luxury shopping. We also recently announced the nomination of Burkhard Grund, Chief Financial Officer of Richemont, as a new Supervisory Board member. With the completion of the transaction, we are excited to welcome Richemont, one of the most renowned and largest luxury companies, as a major shareholder of MyTheresa. As part of the agreement signed, Richemont has the right to nominate a candidate for a seat on the supervisory board, expanding it from seven to eight seats. We are delighted that Burkhard Gund, a highly qualified financial and industry expert in the luxury goods sector, has been nominated to join the board upon closing. the Board will remain composed of a majority of independent directors under both NYSE and Dutch Corporate Governance Code standards. Both the renaming and the nomination of Burkhard Gund will be presented for approval by our shareholders at an extraordinary general meeting scheduled for March 6 and are subject to completion of the YNAB acquisition. With all the above, it should come as no surprise that we are very pleased with our performance in the second quarter of fiscal year 2025. We believe that the strong financial results demonstrate the strength and consistency of our business model delivering profitable growth. We are extremely well positioned and fully prepared for the expected acquisition of YNAB which will unlock even greater opportunities for profitable growth and will create significant value for our shale. All this and the results of the first half of fiscal year 25 support our strong confidence in our medium-term growth trajectory and profitability target. And now, I hand over to Martin to discuss the financial results in detail.