The fashion house posted second-quarter results that were slightly better than analyst estimates.
While it increased net sales considerably, its net loss deepened.
High-end fashion etailer LuxExperience (NYSE: LUXE) was quite the attractive sleeper stock on Tuesday. Thanks to fiscal second-quarter earnings that came in above analyst estimates and positive guidance adjustments, the company's shares saw a more than 21% lift in price on the day.
For its second frame of fiscal 2026, LuxExperience's net sales nearly tripled on a year-over-year basis to just under 647 million euros ($770 million). Its net loss deepened to 9.1 million euros ($10.8 million), from second quarter 2025's deficit of almost 7.7 million ($9.2 million). On a per-share basis, that former number was 0.05 euros ($0.06).
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Both figures bettered the consensus analyst projections, although not spectacularly. Collectively, the pundits tracking LuxExperience stock were anticipating slightly below 646 million euros ($769 million) on the top line, and a deeper per-share net loss of 0.07 euros ($0.08).
The company, a mini-conglomerate of luxury brands, did particularly well with its core Mytheresa line. Its net sales rose by nearly 9% during the quarter to produce nearly 243 million ($289 million) in revenue. On the other hand, Net-a-Porter and the accompanying Mr Porter saw a 1% slide in net sales together, while Yoox declined by 7%.
Clearly encouraged by its performance, LuxExperience raised the lower end of its gross merchandise value (GMV) and earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for the entirety of fiscal 2026.
For the former, the retailer is now modeling 2.5 billion ($3 billion) euros to 2.7 billion euros ($3.2 billion) for the year; previously, the lower end was 2.4 billion ($2.9 billion). The adjusted EBITDA margin should be -1% to 1%, an improvement from the preceding estimate of -2% to 1%.
LuxExperience has an admirable collection of brands, and with that top-line growth, it's clearly resonating with consumers. I'd be considered about its bottom line, though -- as a high-margin fashion purveyor, it seems to me it shouldn't be struggling to book a profit.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.