LuxExperience B.V. (LUXE) TD Cowen 8th Annual Future of the Consumer Conference summary

Key differentiators and strategy

• Maintains the strongest relationships with luxury brands, hosting exclusive events and collaborations that increase annually.

• Focuses on high-end curation, top customer experience, and operational excellence, achieving an industry-leading Net Promoter Score of 80%.

• Least promotional among peers, targeting and retaining top customers with unique, high-value experiences.

Financial performance and market position

• Consistently profitable, even during industry downturns, with a disciplined approach to growth and curation.

• Captures market share from distressed competitors, benefiting from industry consolidation.

• Long-term targets include high teens revenue growth and adjusted EBITDA margins of at least 8%.

Margin and profitability outlook

• Gross profit margin is currently below historical levels due to short-term market pressures but is expected to recover as promotional intensity declines.

• Spring/Summer and Fall/Winter 2024 collections show higher sell-through rates and a greater share of full-price sales.

• No structural impediments to margin recovery; industry consolidation is expected to provide further tailwinds.