LuxExperience leans on Mytheresa growth as YNAP overhaul compresses margins
Bottom Line Impact
Near term margin compression from restructuring is likely, but a decisive pivot to full price and Mytheresa led growth can lift mix and margins, strengthen market position in multi brand luxury, and enhance brand equity with partners and top spenders over the next 12 months.
Key Facts
5- Mytheresa Q4 net sales rose 11.5 percent to 248.9m euros; FY25 net sales up 8.9 percent to 916.1m euros
- Mytheresa FY25 adjusted EBITDA reached 44.6m euros with a 4.9 percent margin
- Group FY26 GMV guidance set at 2.5b to 2.9b euros with adjusted EBITDA margin of negative 4 percent to positive 1 percent
- NAP and MRP luxury segment guided to slight GMV decline in FY26; Yoox and The Outnet expected to decrease considerably as restructuring continues
- Medium term targets reaffirmed at 10 to 15 percent annual growth, 4.0b euros net sales, and 7 to 9 percent adjusted EBITDA margin
Time Horizons
Executive Summary
Mytheresa delivers scale and profitability, offsetting restructuring drag from Net-a-Porter, Mr Porter, and off-price units as LuxExperience pivots to a full-price led model. FY26 guidance signals near-term margin compression during the operating model reset, but medium-term targets point to higher quality growth once off-price is downsized and NAP and MRP are repositioned.
Actionable Insights
Immediate Actions (Next 30-90 days)
Ring fence Mytheresa with autonomous P and L and capital allocation while instituting 90 day transformation office milestones for NAP and MRP and a quantified off-price shrink plan
Rationale: Protects the growth engine and accelerates turnaround where decline is guided; clear milestones de risk execution and signal discipline to brand partners and investors
Role affected:CEO
Urgency level:immediate
Short-term Actions (6-12 months)
Reallocate 20 to 30 percent of group marketing and working capital toward Mytheresa and reduce off-price inventory by 25 to 35 percent over two quarters
Rationale: Shifts spend to highest ROI channel and improves gross margin mix by curbing discounts and inventory carry costs
Role affected:CFO
Urgency level:short-term
Prioritize full-price customer acquisition in the US and Middle East with exclusive capsule drops and loyalty tiers aimed at top 10 percent spenders
Rationale: Captures resilient demand pockets and increases LTV through exclusivity and benefits while NAP and MRP reset
Role affected:CMO
Urgency level:short-term
Strategic Actions
Consolidate luxury tech stack and logistics nodes to drive 10 to 15 percent overhead reduction and cut average return processing time by 2 to 3 days
Rationale: Structural cost and service improvements support margin recovery and enhance partner and customer experience
Role affected:COO
Urgency level:strategic
Risks & Opportunities
Primary Risks
- Execution risk on YNAP restructuring leading to deeper GMV declines at NAP and MRP
- Customer attrition from off-price contraction impacting traffic and paid media efficiency
- Supplier hesitation if transition timelines slip, reducing allocation of top tier assortments
Primary Opportunities
- Gain brand partner share as discount leakage falls and full-price sell through improves
- Acquire or lock exclusives from brands dislocated by market consolidation post Matches
- Lift group gross margin by 150 to 250 bps via mix shift and inventory discipline