LUXE (LUXE) Q4 2025: MyTheresa AOV Jumps 10% as Group Restructuring Targets €4B Path
LUXE’s Q4 2025 marked a decisive pivot as MyTheresa’s high-value customer focus drove a 10% average order value (AOV) increase, even as newly acquired segments weighed on group profitability. Management is executing a sweeping transformation—separating luxury and off-price operations, slashing costs, and installing new leadership—to restore growth and margin expansion. The group’s medium-term ambition is clear: €4 billion in sales and 7-9% EBITDA margin, but the next year remains transitional as restructuring and macro headwinds persist.
Summary
- High-Value Customer Focus: MyTheresa’s top customer strategy delivered rising AOV and margin expansion.
- Restructuring in Motion: Net-a-Porter, Mr. Porter, and Off-Price segments face continued declines as transformation accelerates.
- Transition Year Ahead: Management signals a conservative outlook as cost actions and new leadership take hold.
Performance Analysis
MyTheresa, LUXE’s flagship digital luxury retailer, delivered double-digit sales growth and margin gains in Q4 2025, underscoring the resilience of its wardrobe-building, big-spender customer model. Net sales rose 11.5% year-on-year, with a standout 10% increase in AOV to €773, and top customers—less than 4% of the base—drove over 40% of total GMV. Gross profit margin expanded for the fourth consecutive quarter, up 90 basis points, reflecting a disciplined focus on full-price sales and exclusive brand partnerships.
In stark contrast, the Net-a-Porter and Mr. Porter segment saw sales contract 8.9% in Q4, and the Off-Price segment (YOOX, The Outnet) declined 17.4%. Both segments suffered from legacy underinvestment in marketing and merchandising, compounded by cost structures misaligned to their business models. While group-level reported net sales reached €1.3 billion, the illustrative full-year group sales fell 5.9% to €2.8 billion, with an adjusted EBITDA margin of -2.1% on an illustrative basis, reflecting the drag from acquired segments.
- Profitability Divergence: MyTheresa’s adjusted EBITDA margin hit 6.5% in Q4, while Net-a-Porter/Mr. Porter and Off-Price segments posted negative margins.
- Cost Rationalization: SG&A ratios highlight a 1,000+ basis point gap between MyTheresa (13.4%) and Net-a-Porter/Mr. Porter (24.6%)—a key transformation focus.
- Cash and Liquidity: The group ended the year with €604 million in cash and no bank debt, providing ample runway for restructuring.
Operating cash flow remained positive at MyTheresa, but group cash consumption is expected to continue through FY26 as investment in transformation and marketing ramps up. Inventory discipline was maintained despite growth, and management emphasized a conservative approach to near-term guidance given ongoing macro and customs-related uncertainties.
Executive Commentary
"We have demonstrated clear operational and financial leadership in an otherwise struggling sector, and we have also underlined that we have the expertise of Lux Experience to achieve profitable growth in digital luxury."
Michael Klieger, Chief Executive Officer
"With the execution of our transformation plan, we expect the Net Mr. P segment to achieve comparable profitability levels to the MyTheresa segment with a targeted adjusted EBITDA margin of around 7% to 9% medium term."
Martin Beer, Chief Financial Officer
Strategic Positioning
1. Segment Realignment and Operating Model Overhaul
LUXE is separating its luxury and off-price businesses, establishing dedicated leadership and infrastructure for each. The new structure aims to preserve brand differentiation while unlocking cost synergies in shared services and technology. MyTheresa remains the group’s profit engine, while Net-a-Porter, Mr. Porter, and Off-Price are undergoing targeted restructuring to address years of decline.
2. Leadership Refresh and Brand Strategy
New CEOs and executive teams were installed at Net-a-Porter and Mr. Porter, with mandates to restore editorial authority, focus on full-price selling, and reengage high-value customers. Exclusive product launches and experiential events are central to MyTheresa’s brand moat, and this playbook is being adapted across the group.
3. Cost Discipline and Technology Integration
Cost reduction actions span warehousing, fulfillment, carrier contracts, and workforce rationalization, with SG&A and IT integration as major levers. Technology migration and a unified data analytics layer are underway, designed to streamline operations and enable cross-brand insights.
4. Off-Price Segment Reset
Off-Price is being structurally separated from luxury operations, with a focus on right-sizing cost structure and inventory, and rebuilding marketing and merchandising capabilities. The turnaround is expected to take 18-24 months, with a medium-term goal of restoring profitability.
5. Medium-Term Ambition
Management targets €4 billion in net sales and 7-9% adjusted EBITDA margin, banking on operational leverage and cross-segment synergies. The plan is fully funded, with sufficient liquidity to absorb near-term cash burn and invest in growth opportunities as market conditions improve.
Key Considerations
LUXE’s Q4 2025 results underscore the importance of segment differentiation, leadership renewal, and disciplined cost management as the group executes its transformation plan. Investors should weigh the durability of MyTheresa’s model against the timeline and risk of turning around legacy and off-price businesses.
Key Considerations:
- MyTheresa’s Resilient Model: Full-price focus, high AOV, and top-customer engagement drive outperformance in a challenged sector.
- Transformation Execution Risk: The pace and effectiveness of SG&A reduction, IT integration, and leadership changes will shape future profitability, especially for Net-a-Porter and Off-Price.
- Cash Burn and Liquidity: FY26 will be a cash consumption year, but LUXE’s €604 million cash position provides ample cushion for restructuring.
- Macro and Customs Sensitivity: Management remains cautious on demand volatility, especially in the US and Asia, and is not modeling a rapid recovery in China.
Risks
LUXE faces execution risk as it restructures two underperforming segments, with the turnaround dependent on cost discipline, new leadership impact, and successful brand repositioning. Consumer sentiment and customs-related headwinds remain unpredictable, and off-price profitability is subject to rapid but challenging operational changes. Any delay in realizing cost savings or revenue stabilization could extend the transition period and pressure group margins.
Forward Outlook
For FY26, LUXE guided to:
- Group GMV of €2.5 to €2.9 billion, reflecting ongoing restructuring and conservative demand assumptions.
- Adjusted EBITDA margin between -4% and +1% as transformation costs and investments weigh on near-term profit.
For full-year 2026, management maintained a cautious outlook:
- Comparable profitability levels to FY25, with improvement expected in two to two and a half years as transformation completes.
Management highlighted several factors that will shape results:
- Continued margin expansion and growth at MyTheresa, especially in Europe and the US.
- Gradual improvement at Net-a-Porter, Mr. Porter, and Off-Price as new buying and marketing strategies take effect.
Takeaways
LUXE’s Q4 2025 results mark both a validation of MyTheresa’s premium model and a reset for the broader group.
- Segment Divergence: MyTheresa’s model delivered margin expansion and cash flow, while acquired segments remain in turnaround mode, underscoring the importance of business model fit and disciplined execution.
- Transformation in Progress: Leadership changes, cost actions, and technology integration are foundational to restoring profitability at Net-a-Porter, Mr. Porter, and Off-Price, but will take time to show through in results.
- Investor Watchpoint: Progress on SG&A reduction, AOV trends, and early signs of revenue stabilization at legacy segments will be key signals for the pace of group recovery in FY26 and beyond.
Conclusion
LUXE is leveraging MyTheresa’s proven playbook to drive group transformation, but the journey to €4 billion in sales and sustainable margins will require disciplined execution and patience. FY26 is positioned as a transition year, with the real test being how quickly legacy and off-price segments can be stabilized and repositioned for profitable growth.
Industry Read-Through
LUXE’s results highlight a bifurcation in digital luxury: platforms with a high-value, full-price customer base and brand exclusives can outperform even in turbulent markets, while undifferentiated or off-price models face margin and demand headwinds. The sector’s ongoing consolidation and leadership churn suggest further shakeouts ahead. Cost discipline, technology leverage, and customer community-building are emerging as critical competitive advantages, with implications for peers navigating similar transformation and integration challenges. Investors should expect continued volatility and look for operators with clear brand focus and the balance sheet to weather the reset.