LUXE: Mytheresa Delivers Standout Profitability, but YNAP and Off-Price Segments Continue to Drag on Margins
Mytheresa Powers LuxExperience Growth with 73% Surge in Adj. EBITDA
In the latest earnings release, LuxExperience (NYSE: LUXE) showcased the strength of its core Mytheresa business, with Q4 FY25 net sales jumping 12% year-over-year and full-year sales climbing nearly 9%. Most notable, however, was Mytheresa’s Adjusted EBITDA which soared 73% to €16.1 million in the quarter, underlining significant profitability gains despite persistent macroeconomic headwinds. Mytheresa’s gross margin improved to 48.3%, up 90 basis points year-over-year, while average order value increased 10% to €773, highlighting robust consumer engagement and spending in the luxury space.
Group Margin Impacted by Loss-Making YNAP and Off-Price Units
The recently acquired YOOX NET-A-PORTER (YNAP) and Off-Price segments, now included in consolidated reporting, show a contrasting performance. While the luxury e-commerce peer NAP/MRP posted a slight increase in average order value and high gross profit margin (44.8%), it swung to a negative adjusted EBITDA margin of -0.7% for the year. The Off-Price division, meanwhile, continues to weigh on the group with net sales declining, gross margin dropping to 35%, and an adjusted EBITDA margin deeply negative at -12.1%. The net result: group adjusted EBITDA for FY25 was negative €78.5 million on net sales of €2.92 billion.
| Segment | FY25 Net Sales (€m) | Gross Margin (%) | Adj. EBITDA Margin (%) |
|---|---|---|---|
| Luxury MYTHERESA | 916.1 | 47.0 | 4.9 |
| Luxury NAP/MRP | 1,042.8 | 44.8 | -0.7 |
| Off-Price | 792.8 | 35.0 | -12.1 |
| Group Total | 2,916.1 | 42.7 | -2.1 |
US Market Emerges as a Key Growth Driver for Mytheresa
One highlight for Mytheresa was its expansion in the US, where net sales grew nearly 10% in FY25 and now represent 20.6% of the total business. The group credits new exclusive capsule launches and VIP customer events for reinforcing its position among luxury shoppers, alongside improved average spend and greater GMV per top customer (+16.1%).
Group Transformation and 2026 Guidance Suggest More Margin Pressure Ahead
LuxExperience’s ongoing group reorganization—aimed at cost reduction, tech migration, and leadership renewal—signals continued integration risk and a transition year for 2026. The company guides for group-level adjusted EBITDA margin between -4% and +1% in FY26, with Mytheresa’s segment still expected to grow but NAP/MRP and Off-Price likely to contract. The group targets medium-term sales growth of 10–15% annually and ultimately aims for €4 billion in net sales and a group EBITDA margin of 7–9%.
| FY26 Guidance | Value |
|---|---|
| GMV (Group) | €2.5–2.9 billion |
| Adj. EBITDA Margin | -4% to +1% |
| Medium-Term Net Sales Target | €4 billion |
| Medium-Term Adj. EBITDA Margin Target | 7–9% |
Takeaway: Mytheresa’s Profit Engine Offsets Broader Luxury Platform Challenges—for Now
The Q4 and FY25 report shows LuxExperience’s strengths lie squarely with Mytheresa, where growth and margin improvements shine against the challenges of integrating newly acquired, less profitable units. The company’s ambitious targets rest on its ability to quickly restructure and revive its loss-making YNAP and Off-Price arms, all while macroeconomic and competitive headwinds persist. Investors and luxury market watchers may want to keep an eye on execution in FY26—especially whether Mytheresa can keep outperforming and if group-wide transformation efforts yield the promised uplift in margins.
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