MYT Netherlands Parent BV ADR

Greetings and welcome to Lux Experience Third Quarter 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 Baer, 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 2025, our first investor conference call since we closed the acquisition of Jukes Nelaporte and changed our company name to Lux Experience to reflect the best of the combined companies. Today's call is dedicated to the fiscal Q3 results of the legacy MyTheresa standalone business. With me today is our CEO, Michael Kieger. Before we begin, we would like to remind you that our discussions today will include forward-looking statements. Any statements we make about expectations of 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 that 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 press release, which is available on our investor relations website at investors.luxexperience.com. We'll 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 our third quarter of fiscal year 2025. We are, of course, truly excited to have completed the acquisition of Jukes Net-A-Porter on April 23rd, and to now operate the leading global luxury multi-brand retail group under the name Lux Experience. This acquisition brings together some of the most iconic brands in digital luxury retail and will generate enormous value for our customers, brand partners, and shareholders. Lux Experience is now the preeminent multi-brand group in digital luxury with combined net sales of around 3 billion euros. Our medium-term ambition is to reach $4 billion in net sales and 7% to 9% adjusted EBITDA margin. We will provide much more details on the just completed acquisition tomorrow in a separate investor call. As we now embark on the exciting new chapter as Lux Experience, I'm very proud to see our company in a very healthy and strong position. I'm specifically very pleased with our results in the third quarter fiscal year 2025. With solid revenue growth and positive adjusted EBITDA, we continued to demonstrate our ability to execute well and achieve strong results on the continued macro uncertainties where other players fail. We are the leader. in a clearly consolidating sector and continue to display the unique characteristic of profitable growth. Our improved cost margin, the strong growth of top customer spend, the outstanding high average order value, and the excellent customer satisfaction all highlight the fundamental strengths of our business model. I wish to highlight today three key messages to you that make us stand out in the third quarter and demonstrate the strengths of the MyTheresa business despite ongoing macro uncertainty. First, our unique focus on high spending wardrobe building luxury shoppers drove again our solid profitable growth around the world. We build a community for true luxury enthusiasts and we create desirability with them also through unique physical experiences. Second, the strong relationship that we have with big spending wardrobe building luxury customers continues to drive the desire by luxury brands to partner with us. This gave us again access to many exclusive capsule collections and pre-launch campaigns that in turn drove our global business growth in the third quarter of fiscal year 2025. Third, Our very resilient and consistent business model and execution allowed us to significantly improve many of our key performance indicators in the third quarter. Expanding gross margin, outstanding AOV, and increasing top customer spend were again drivers for improving profitability in terms of adjusted EBITDA in the third quarter. Let me now comment in more detail on these three messages. First, let's look how building a global community for luxury enthusiasts is driving our business. In the third quarter, our GMV with top customers grew by plus 7.8% compared to the prior year period, underlining resilience of top customers to macro headline. This growth was largely driven by an outstanding increase of the average spend per top customer in terms of GMV by plus 17.9% in Q3 fiscal year 25 versus Q3 fiscal year 24. In the United States, our business with our top customers even grew by plus 12%, driven by the impressive growth of average spend per US top customer of plus 17.8%. We mentioned already in the last quarter, our two-week immersive invite-only après-ski experience in Aspen in collaboration with Bammelmann's Bar. This is a great example how we are able to attract high net worth customers in the United States. Over 1,800 guests were seated over 17 days in the pop-up and over 2,300 contact details were captured with 56% registrants being new contacts. Since signing up for the event, Guests have generated a total revenue of €830,000 and their repurchase rate is already at 48%. Our clear ambition is to build the strongest relationships with our top customers and we therefore constantly engage with them. In the third quarter, we hosted again various events for our top customers across the globe. Examples include StyleSweets in Miami, Dusseldorf, San Francisco, New York, and Hong Kong. We hosted Michelin-starred dinners in Houston, Washington, D.C. We invited top customers to an intimate lunch with the Kate in the Kate showroom, allowing top customers to meet with Katherine Holstein, founder and creative director of Kate, as well as seeing the latest pieces from the newest collection. Together with Caroline Herrera, we welcome top customers at the Hotel de Crillon, where creative director Wes Gordon shared the inspiration and artistry behind his latest runway collection, followed by a lunch with himself. Moreover, we partnered again with Porsche for a driving experience in Los Angeles and, for the first time, with Fat Ice Race, inviting top customers to a motorsport racing experience on ice in Austria, including a cocktail moment with Spurton and Porsche. Please see our investor presentation for more details on our various top customer events. To fulfill our ambition to build a community for luxury enthusiasts through digital and physical experiences, we organize for our top customers true money can't buy experience. In the third quarter, top customers were invited to an event with Alaya and Venu, including a dinner on the first night at the famous Harry's Bar, a private tour for the very first time in the renowned Niles Knitwear Factory in Vishtensa, and a beautiful dinner to conclude the event at Villa Valmaran. We hosted an exclusive dinner with the creative director Christopher Esper the namesake brand, at Lula Restaurant during Paris Fashion Week. We hosted a two-day experience with Patou in Paris to celebrate the exclusive capsule collection from MyTheresa. The first day included an afternoon tea at the private apartment of the brand's creative director, Guillaume Henry, followed by an elegant dinner at Brasserie L'Emile. The second day, top customers were invited to explore Paris with a curated guide to the city's hidden gems by Guillaume, concluding with an intimate lunch at Brasserie Limp. Together with Pomelato, we also hosted top customers for a two-day Milan experience, including a private tour of the renowned Casa Pomelato factory, an elegant dinner at Craco in Galleria, a Pomelato showroom visit, a private guided tour of Casa Fornazetti and a lunch at the iconic Beecher restaurant. Finally, we hosted a Texan experience with Pucci to celebrate the launch of the exclusive Pucci capsule collection in Austin. The afternoon started with an intimate cocktail moment with Pucci's artistic director Camille Miceli, followed by a cocktail party at the famous Austin Motel where guests were treated to custom cowboy head shaping, a live country music band, and lively two-step dance performances. In addition to providing our top customers a memorable experience, such events also create brand awareness for the MyTheresa brands through global social media amplification. Please see our investor presentation for more details on these unique money-can-buy experiences. Second, our strong relationship with such customers clearly drives the desire of luxury brands to partner with us. One evidence for the strong trust and support we enjoy is the recent expansion of our partnership with Prada, which allows us now to distribute Prada products globally, effectively doubling our reach and our business potential with the brand. The third quarter saw again many high-impact campaigns and exclusive product launches that drove our global business growth with high-spending wardrobe-building customers. We launched exclusive womenswear and menswear runway looks from Loewe, as well as exclusive bags and accessories from the Loewe Luna Nuit collection for womenswear. We launched an exclusive capsule collection by Manolo Blahnik for womenswear and menswear, only available at Maitere. We were the exclusive pre-launch partner for Totem's T-Lock clutch bags and the Totem Garderobe collection, as well as Etro's Spring Summer 25 collection. We also launched exclusive women's wear styles from Balenciaga's Summer 25 collection and exclusive menswear styles from Tod's Spring Summer 25 collection. Please see our investor presentation for more details on brand collaborations in the third quarter. Such unique offers drove the interest by wardrobe building big luxury spenders and thereby our solid top line in the third quarter of fiscal year 25. We grew our net sales by plus 3.8% compared to Q3 of fiscal year 24. The first nine months of fiscal year 25, net sales grew by plus 8%. The United States saw similar growth with plus 3.9% in Q3 fiscal year 25, while in Europe, including Germany and the UK, we experienced a very strong net sales growth with plus 8.1% in the third quarter compared to the prior year period. Third, in the third quarter of fiscal year 25, we continued to improve our business performance thanks to our very resilient and consistent business network. Martin will talk in a few minutes about the details of our bottom line results for the third quarter, but let me provide you with some key operational highlights. We achieved outstanding customer satisfaction measured by our internal net promoter score that reached a record high of 86% in Q3 this year 25, demonstrating the consistent excellence of our customer service proposition. Our average order value last 12 months increased by plus 8.8% to an outstanding Euro 753 in Q3 fiscal year 25, demonstrating the success of our focus on selling full-price high-end luxury products to top customers. Furthermore, our gross margin improved by 140 basis points which underline our successful strategy of full price selling. Our return rates decreased in the third quarter, also contributing to the strong profitability of plus 3.9% in terms of adjusted BTA margins. All these operational highlights serve as a testament to the fundamental strengths of our business. With all the above, it should come as no surprise that we are very pleased with our performance in the third quarter of fiscal year 2025. We see this quarter as further proof that our business can deliver profitable growth, even under ongoing macro uncertainties, due to the strength of our model and consistency of our execution. This proven strength and the track record of our teams for excellent execution drives our strong confidence in creating enormous value through the acquisition of Jukes Metaporta. And now I hand over to Martin to discuss the financial results in detail.