Following up on this, LUXE reported this morning: OK quarter overall, with some messiness in NAP/MRP that makes it look worse than reality. The good: strong margin expansion across all three segments and another beat at Mytheresa. The bad: NAP/MRP top line -5% cc as the company prioritized full-price sales and lapped a heavily promotional quarter under Richemont. Net-net, LUXE is making good progress on the integration and should be on a path to MSD-HSD EBITDA margins. Stock is extraordinarily cheap — 0.2x EV/sales, 0.4x EV/GP, and ~2x EBITDA on the 7-9% margin target in 2-3 years. Key highlights: Net sales flat cc Group SG&A ratio 18% (vs 19% Q2, 22% Q1) Adj. EBITDA margin ~1% Mytheresa: sales 10% cc, GMV 11%, GM 240bps, adj. EBITDA 50% to 5.5% margin ( 160bps) NAP/MRP: sales -5% cc, GM 700bps, adj. EBITDA margin -0.5% Off-price: sales -7% cc, GM 620bps, adj. EBITDA margin -5.5% Standout was Mytheresa: 10% growth (US 34%) with healthy margin expansion. Group SG&A progress sets up real operating leverage from here. Disappointment was NAP/MRP top line, but the 700bps gross margin print shows the focus on higher-quality sales is working. Middle East conflict was a headwind, not quantified. Somewhat of a reset on top-line expectations, but continued progress on the NAP/MRP/Off-price integration — which we knew would be lumpy. Valuation continues to get sillier: on the 8% margin target, ~2x EBITDA and ~3x EPS a couple years out.

$LUXE Q3 2026 earnings: Cost Execution Drives Margin Gains, But Top-Line Recovery Stalls LuxExperience reported its second consecutive quarter of positive Adjusted EBITDA ( €5.7M), validating that its aggressive SG&A reduction plan for the acquired YNAP assets is working. However, the volume recovery is stalling. Group Net Sales fell 5.2% to €618.4M (stable at 0.0% ex-FX). The core Mytheresa segment remains a stable growth engine ( 5.6%), but the turnaround segments—NAP/MRP and YOOX—reversed their Q2 momentum, posting double-digit reported revenue declines. While management confirmed FY26 guidance and the balance sheet is now debt-free, the heavy reliance on adjustments to claim 'profitability' while GAAP net losses expand remains a significant caveat for investors. Full article with charts - link in bio 🐂 𝐁𝐮𝐥𝐥 𝐂𝐚𝐬𝐞 • 𝐂𝐨𝐬𝐭 𝐒𝐲𝐧𝐞𝐫𝐠𝐢𝐞𝐬 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐢𝐳𝐢𝐧𝐠 𝐅𝐚𝐬𝐭 — The group SG&A cost ratio plummeted from 21.9% in Q1 to 18.3% in Q3. The ability to extract costs from the bloated YNAP infrastructure is tracking ahead of schedule. • 𝐆𝐫𝐨𝐬𝐬 𝐌𝐚𝐫𝐠𝐢𝐧𝐬 𝐄𝐱𝐩𝐚𝐧𝐝𝐢𝐧𝐠 — A strict discipline of full-price selling is working. NAP/MRP gross profit margin surged 700bps YoY to 48.5%, proving the brand equity remains strong when discounts are removed. 🐻 𝐁𝐞𝐚𝐫 𝐂𝐚𝐬𝐞 • 𝐓𝐮𝐫𝐧𝐚𝐫𝐨𝐮𝐧𝐝 𝐓𝐨𝐩-𝐋𝐢𝐧𝐞 𝐢𝐬 𝐑𝐞𝐯𝐞𝐫𝐬𝐢𝐧𝐠 — After narrowing its sales decline to just -1.0% in Q2, NAP/MRP reversed course in Q3, plunging 11.7%. YOOX also worsened to an 11.4% decline. The turnaround is currently entirely margin-led, not volume-led. • 𝐃𝐞𝐞𝐩 𝐆𝐀𝐀𝐏 𝐍𝐞𝐭 𝐋𝐨𝐬𝐬𝐞𝐬 — Despite celebrating 'Adjusted EBITDA profitability', the company posted a net loss of €35.4M for the quarter, driven by heavy depreciation, amortization, and transaction costs. ⚖️ 𝐕𝐞𝐫𝐝𝐢𝐜𝐭: ⚪ Neutral. Management is executing brilliantly on the elements they can control—costs and gross margin discipline. However, the top-line deterioration at the YNAP brands and emerging macroeconomic headwinds indicate that the commercial turnaround is far from complete. 𝐊𝐞𝐲 𝐓𝐡𝐞𝐦𝐞𝐬 🟢 𝐀𝐠𝐠𝐫𝐞𝐬𝐬𝐢𝐯𝐞 𝐒𝐆&𝐀 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 Cost reduction is the primary driver of LuxExperience's profitability. The Group Adjusted SG&A ratio has been steadily decelerating, dropping 360 basis points from 21.9% in Q1 FY26, to 19.1% in Q2, down to 18.3% in Q3. This rapid cost extraction from the legacy YNAP businesses is critical to reaching the 7-9% medium-term margin target. 🟢 𝐅𝐮𝐥𝐥-𝐏𝐫𝐢𝐜𝐞 𝐃𝐢𝐬𝐜𝐢𝐩𝐥𝐢𝐧𝐞 𝐑𝐞𝐬𝐭𝐨𝐫𝐞𝐬 𝐆𝐫𝐨𝐬𝐬 𝐌𝐚𝐫𝐠𝐢𝐧𝐬 The mandate to detox from promotions is yielding spectacular results on the gross profit line. NAP & MRP saw its gross margin expand by 700bps to 48.5% YoY, while YOOX expanded by 620bps to 37.5%. Management's willingness to sacrifice unprofitable volume for margin integrity is accelerating the path to break-even. 🟢 𝐌𝐲𝐭𝐡𝐞𝐫𝐞𝐬𝐚 𝐑𝐞𝐦𝐚𝐢𝐧𝐬 𝐭𝐡𝐞 𝐆𝐫𝐨𝐰𝐭𝐡 𝐄𝐧𝐠𝐢𝐧𝐞 The legacy Mytheresa business continues to anchor the group, posting 5.6% reported growth (9.9% ex-FX) and generating €14.1M in Adjusted EBITDA. Growth was driven by a 12.5% LTM increase in Average Order Value (AOV) to €847, fueled by exclusive capsule collections from Balenciaga, Bottega Veneta, and Gucci. 🔴 𝐓𝐮𝐫𝐧𝐚𝐫𝐨𝐮𝐧𝐝 𝐒𝐞𝐠𝐦𝐞𝐧𝐭𝐬 𝐑𝐞𝐯𝐞𝐫𝐬𝐢𝐧𝐠 𝐓𝐨𝐩-𝐋𝐢𝐧𝐞 𝐌𝐨𝐦𝐞𝐧𝐭𝐮𝐦 [NEW] A major concern is the reversing momentum in the acquired segments. In Q2, management touted that NAP/MRP had narrowed its sales decline to just -1.0%. In Q3, that decline widened dramatically back to -11.7% (-5.1% ex-FX). YOOX also saw its decline worsen from -7.3% in Q2 to -11.4% in Q3. The commercial turnaround is proving volatile. 🔴🔴 𝐄𝐁𝐈𝐓𝐃𝐀 𝐍𝐚𝐫𝐫𝐚𝐭𝐢𝐯𝐞 𝐂𝐨𝐧𝐭𝐫𝐚𝐝𝐢𝐜𝐭𝐬 𝐄𝐱𝐩𝐚𝐧𝐝𝐢𝐧𝐠 𝐍𝐞𝐭 𝐋𝐨𝐬𝐬𝐞𝐬 [NEW] Management's narrative heavily emphasizes the 'second consecutive quarter of Adjusted EBITDA profitability' ( €5.7M). However, looking at the actual bottom line contradicts this rosy picture: Net Loss for the quarter was -€35.4M. This massive gap is driven by surging Depreciation & Amortization (€18.7M in Q3 vs €11.6M in Q1) and high transaction/restructuring costs (€6.6M). True profitability remains years away. 🔴 𝐆𝐞𝐨𝐩𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐇𝐞𝐚𝐝𝐰𝐢𝐧𝐝𝐬 𝐃𝐫𝐚𝐠𝐠𝐢𝐧𝐠 𝐆𝐫𝐨𝐰𝐭𝐡 [NEW] Management explicitly cited 'geopolitical headwinds in March' as a factor weighing on Q3 results. This macro factor caused a decelerating trend even in the healthy Mytheresa segment, where growth slowed from 8.8% in Q2 to 5.6% in Q3. Continued macro instability could threaten the FY26 guidance. ⚪ 𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐞 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐌𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐨𝐧 𝐓𝐫𝐚𝐜𝐤 A critical technological milestone is underway: the migration of NET-A-PORTER and MR PORTER onto LuxExperience's proprietary tech platform. Completing this infrastructure consolidation is the linchpin to permanently lowering the IT and operational costs of the acquired brands. 𝐎𝐭𝐡𝐞𝐫 𝐊𝐏𝐈𝐬 𝐆𝐫𝐨𝐮𝐩 𝐂𝐚𝐬𝐡 𝐏𝐨𝐬𝐢𝐭𝐢𝐨𝐧: €436.1 million Stable and secure. Cash and cash investments ended Q3 at €436.1M, giving the company ample runway to fund the remaining cash burn required for the YNAP turnaround. Crucially, the company ended the quarter completely debt-free, having paid down previous bank liabilities. 𝐓𝐇𝐄 𝐎𝐔𝐓𝐍𝐄𝐓 𝐃𝐢𝐯𝐞𝐬𝐭𝐢𝐭𝐮𝐫𝐞: Completed The sale of THE OUTNET assets to The O Group LLC was successfully closed on April 30, 2026. This divestiture immediately simplifies the Off-Price segment, allowing management to focus purely on fixing the core YOOX business. 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝐅𝐘𝟐𝟔 𝐆𝐫𝐨𝐬𝐬 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐝𝐢𝐬𝐞 𝐕𝐚𝐥𝐮𝐞 (𝐆𝐌𝐕): €2.5 - €2.7 billion Stable. Management confirmed this full-year target. Given the €1.82B consolidated Net Sales generated in the first nine months, the company is on track to hit this target, indicating that Q4 volumes are expected to remain consistent despite ongoing business pruning. 𝐅𝐘𝟐𝟔 𝐀𝐝𝐣𝐮𝐬𝐭𝐞𝐝 𝐄𝐁𝐈𝐓𝐃𝐀 𝐌𝐚𝐫𝐠𝐢𝐧: -1% to 1% Accelerating probability of achievement. Year-to-date Adjusted EBITDA sits at roughly -€2.7M on €1.83B of sales (essentially a 0.0% margin). Given the structural improvements in SG&A demonstrated in Q3, the company is highly likely to finish the year safely within this confirmed guidance range. 𝐊𝐞𝐲 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐍𝐀𝐏/𝐌𝐑𝐏 𝐕𝐨𝐥𝐮𝐦𝐞 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲 The revenue decline for NAP/MRP widened back to 11.7% in Q3 after narrowing in Q2. When do you expect the new buying strategies and merchandise deliveries to finally return this segment to top-line growth? 𝐁𝐫𝐢𝐝𝐠𝐞 𝐟𝐫𝐨𝐦 𝐄𝐁𝐈𝐓𝐃𝐀 𝐭𝐨 𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞 With Depreciation & Amortization accelerating to nearly €19M this quarter, what is the expected normalized run-rate for D&A post-integration, and when do you expect to achieve positive GAAP Net Income? 𝐆𝐞𝐨𝐩𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐈𝐦𝐩𝐚𝐜𝐭 You cited geopolitical headwinds in March affecting sales. Have these headwinds persisted into April and May, and are they concentrated in specific regions like Europe or the Middle East?

Q2 earnings call highlights