Updated May 15 4:19 p.m. ET
LuxExperience, the umbrella company holding both Mytheresa and recently acquired Yoox Net-a-porter, is forecasting a “dramatic shift” in the size and profitability of the combined entity.
“We have a bold transformation plan already in place,” said Michael Kliger, managing director and chief executive officer, during the Munich-based company’s first investor conference call since the acquisition was finalized in April.
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Medium-term goals for LuxExperience calls for annual net sales of 4 billion euros by fiscal year 2030, from almost 3 billion currently; adjusted earnings before interest, taxes, depreciation and amortization margin of 7 to 9 percent, and adjusted EBITDA exceeding 300 million euros. For fiscal ’26 and fiscal ’27, the company sees 1 to 4 percent adjusted EBITDA margin, as it invests for growth.
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LuxExperience expects to spend 200 million to 250 million euros on restructuring over the next two to three years including technology, corporate office and operations integrations and consolidations expected to yield 150 million euros in annual expense savings. The goal, Kliger said, is “to achieve an optimal business model for the two segments,” referring to LuxExperience’s luxury and off-price businesses.
Investors are still waiting to see how the businesses come together and sent shares of the company down 3.9 percent to $9.73 on Thursday.
Kliger said that LuxExperience will migrate its Net-a-porter and Mr Porter luxury websites to the technology infrastructure used for the Mytheresa luxury website — a combination expected to yield a 70 percent tech cost reduction over the next two or three years. Separately, the company will “streamline and simplify” the tech infrastructure that the Yoox and The Outnet off-price websites use. The off-price side of LuxExperience will have its own backend operations “because they’re operating a lower [average order value] and a lower margin business,” Kliger said.
The new entity also expects 30 percent lower cost per customer care contact and 40 percent lower cost per photo production.
On April 23, LuxExperience — formerly Mytheresa — closed its deal to acquire Yoox Net-a-porter from Richemont, which provided LuxExperience with 555 million euros, no debt and a 100 million-euro credit facility, in exchange for 33 percent of Mytheresa shares. Beginning in the fourth quarter of fiscal year 2025, LuxExperience will be reporting in three operating segments: Mytheresa, Net-a-porter and Mr Porter as well as Yoox and The Outnet off-price businesses.
On Wednesday, Mytheresa alone reported that adjusted third-quarter net income rose to 5.4 million euros from 3.8 million euros a year earlier, a measure that factors out acquisition costs. Net sales grew 3.8 percent to 242.5 million euros.
With the takeover of YNAP, LuxExperience has a database of 4 million customers.
“This is the richest database in the world for luxury shoppers, and thus we can create the best and deepest insight in how luxury shoppers shop,” Kliger said. “It will allow us to drive personalization, use AI models that we already have today for product recommendations across the different brands, improve our relevance, improve brand performance.”
He also said LuxExperience’s “improved proposition makes us even more attractive than today for brands to partner with us. But we clearly identified opportunities for cost savings by combining the data platforms and the data analytical tools, and then on corporate functions, we do see synergy. We believe and see that we can combine many functions in the backend and with administrative functions that serve the whole group, and thus reduce the cost base.”
Kliger, emphasizing the company’s potential over the next few years, told investors that LuxExperience has “an outstanding market opportunity from the continuing growth of digital, unique, valuable assets in terms of brands, a global footprint with unprecedented reach, and most important, a high value customer base.”
He stressed the importance of having differentiated offerings across the portfolio’s brands and that they are being managed by different teams. “Everything that drives the attractiveness and desirability of these different brands to customers will be separate,” Kliger said.
“We’ve also clearly identified the best talent for our central functions to deliver synergies and cost efficiency, on technology, on operation, on data, on group commercial, on HR, and we have appointed the teams that drive to drive the transformation, all announced and in place. And we have already put the next level in place…but there will be more [changes] coming in the next couple of weeks.”
He said the luxury industry is predicted to grow from $360 billion to $480 billion over the next six years, with the digital luxury market growing from $70 billion to $150 billion. “Predictions are very hard to nowadays, but if it’s 130 billion or 160 billion, it doesn’t matter.”
At the core of LuxExperience is a mission to inspire customers. “Inspiration seekers are higher-spending, high frequency luxury customers,” Kliger said.
Emphasizing just how the LuxExperience brands differentiate, he characterized Mytheresa as focused on timeless, high-end luxury, and Net-a-porter as focused on elevated contemporary and luxury fashion and trends.
The CEO also said Mytheresa’s business is very strong in Europe while Mr Porter is strong in North America. The brand overlap is 35 percent in womenswear, 25 percent in men’s, and within overlapping brands, less than 50 percent of the stock keeping units are found at Mytheresa and Net-a-porter. “If you look at the higher spending customers, the overlap is even smaller, less than 9 percent and this is what we are going to protect and strengthen,” Kliger said. “Having these different brands under one roof, we can cover different parts of the market, so that in totality, we cover more of the market. This is very important, and this is driving our strategy and our organizational principles.”