German luxury e-commerce group LuxExperience BV has reported strong fourth quarter (Q4) of fiscal 2025 (FY25) results for its Mytheresa business, with net sales rising 11.5 per cent year-over-year (YoY) to €248.9 million (~$291.2 million), supported by gross merchandise value (GMV) growth of 11.1 per cent to €265.9 million.

The gross profit margin expanded to 48.3 per cent, an improvement of 90 basis points (bps) compared with Q4 FY24. The adjusted EBITDA increased to €16.1 million, with margins improving to 6.5 per cent from 4.7 per cent.

LuxExperience BV has reported FY25 results with Mytheresa net sales up 11.5 per cent in Q4 to €248.9 million (~$291.2 million) and 8.9 per cent annually to €916.1 million (~$1.07 billion).
GMV rose 11.1 per cent in Q4 and 8.2 per cent for the year, while adjusted EBITDA more than doubled to €44.6 million.
The group advanced reorganisation post-YNAP acquisition and expects FY26 to be a transition year.

Customer economics were strong, with GMV per customer up 13 per cent and top customer GMV increasing 16.1 per cent compared with Q4 FY24. The average order value climbed 10 per cent to €773, while the US market contributed 20.6 per cent of total net sales following 9.7 per cent growth, LuxExperience said in a press release.

For the full fiscal, Mytheresa achieved net sales of €916.1 million (~$1.07 billion), up 8.9 per cent compared with FY24, while GMV grew 8.2 per cent to €988.5 million. The gross profit margin improved to 47 per cent, an increase of 130 basis points. Adjusted EBITDA more than doubled YoY to €44.6 million from €25.8 million, with profitability rising to 4.9 per cent from 3.1 per cent in FY24.

“I am extremely pleased with the results of our Mytheresa business. We have demonstrated clear operational and financial leadership in digital luxury. We have the expertise and track-record of achieving consistently profitable growth in digital luxury at LuxExperience,” said Michael Kliger, CEO at LuxExperience.

At the group level, LuxExperience nearly completed its reorganisation into a new operating model, initiating cost reduction measures, tech migration, and transformation of finance and HR functions, alongside partial workforce cuts at YNAP.

Mytheresa launched exclusive capsule collections with brands such as Dolce & Gabbana, Versace, and Bottega Veneta, while hosting premium customer events worldwide. At Net-A-Porter and MR Porter, new leadership teams were appointed to strengthen strategy. Meanwhile, Yoox and The Outnet began separating their business models from luxury operations, with dedicated leadership and streamlined functions in finance, HR, operations, and technology.

Looking ahead, LuxExperience expects FY26 to be a transition year, with GMV projected between €2.5 billion and €2.9 billion and an adjusted EBITDA margin ranging between -4 per cent and +1 per cent. Mytheresa is forecast to maintain its growth trajectory, while Net-A-Porter and Mr Porter may see slight GMV declines, and Yoox and The Outnet will continue restructuring efforts.

“LuxExperience is in a remarkable position to become the one and only destination for luxury enthusiasts worldwide, bringing together some of the most iconic brands in digital luxury retail. I am very pleased with the fast start of the group transformation to leverage the scale and scope for strong growth and profitability for the whole group,” added Kligner. “Medium-term we expect to reach €4 billion in net sales and an adjusted EBITDA margin of 7 per cent to 9 per cent. LuxExperience expects to generate significant value for our customers, brand partners, and shareholders going forward.”

Fibre2Fashion News Desk (SG)

As land, labour, and operational costs continue to rise in India’s urban areas, apparel and textile companies are actively exploring cost-effective alternatives. This structural shift is steering investors’ focus toward rural and semi-urban regions with the potential to support large-scale manufacturing.

Bihar is gaining prominence as an apparel manufacturing hub, with its strategic location near key markets and an abundance of trainable labour driving investor interest.
Bihar’s Industrial Policy 2025 offers financial incentives and land allotments to attract investment.
Infrastructure projects, including the Eastern Freight Corridor, are enhancing connectivity and scalability for manufacturers.

Among the frontrunners in this evolving landscape is Bihar, an eastern state increasingly being seen as a credible, long-term hub for textile and apparel production.

Bihar’s comparative advantage lies in its vast pool of affordable, trainable labour and a growing support system of enabling policies, infrastructure upgrades, and availability of land for industries.

With manufacturing decentralisation becoming a dominant trend, the state’s strategic location near the key consumer markets of Delhi and Kolkata, as well as proximity to states like Uttar Pradesh, Jharkhand and the neighbouring country Nepal, further strengthens its appeal.

This proximity reduces transportation time and logistics costs, facilitating faster delivery.

Union Minister of State for Textiles and External Affairs, Pabitra Margherita, during a recent visit to Patna, emphasised Bihar’s potential to become a major centre for readymade garment manufacturing.

He pointed to increasing interest from leading apparel manufacturers, several of whom are now setting up production units in the state. Begusarai, in particular, has already seen the commencement of operations at a few such facilities, indicating early-stage traction.

Institutional partnerships are also playing a key role in building industry-ready human capital. One notable example in this direction is the signing of a Memorandum of Understanding (MoU) between NIFT Patna—operating under the Ministry of Textiles—and Aditya Birla Fashion and Retail Limited (ABFRL), one of India’s largest fashion conglomerates.

The partnership, formally announced in the presence of Union Minister of Textiles Giriraj Singh, is aimed at empowering rural women through targeted skill development and direct employment integration.

The collaboration will train members of self-help groups, popularly known as Jeevika Didis, in core garment manufacturing processes, quality control systems, and machine operations.

These training sessions will be conducted at NIFT Patna and its extension centres.

Once trained, these women will be eligible for employment at ABFRL’s upcoming manufacturing unit in Begusarai.

As per the Union Minister of Textiles, the programme is expected to benefit over 3.5 lakh women in its initial phase, with plans to extend coverage to adjoining districts.

This integrated approach—linking skill development to formal employment within a structured industrial framework—is a model that could reshape Bihar’s textile landscape. It not only addresses workforce readiness but also promotes women’s economic inclusion, a key enabler of sustainable industrial growth.

The momentum is not limited to training and pilot projects.

In an important step toward strengthening Bihar’s apparel manufacturing base, a new readymade garment unit has also reportedly been announced in the Bela Industrial Area, Phase 2 of Muzaffarpur.

Developed by M/s Gogreen Apparel Limited, the project reportedly entails a private investment of ₹23.36 crore, and upon completion, the facility will reportedly have an estimated annual production capacity of 5.5 million garments.

As per media reports, Bihar Deputy Chief Minister Samrat Choudhary confirmed that the unit falls within the textile and leather sector, which the state government has designated a high-priority industry under its recently approved Industrial Policy 2025.

The policy framework offers a comprehensive range of incentives—including capital subsidies, land allotments, tax exemptions, and dedicated support for skill development—intended to attract private investment and spur job creation.

He further emphasised that this unit represents a tangible step in Bihar’s broader industrial strategy. The goal is to position the state as a robust player in India’s textile manufacturing value chain while simultaneously enhancing its employment and economic growth metrics.

These efforts are being reinforced by investments in infrastructure and logistics designed to close existing gaps and prepare the state for scalable industrial activity.

While the outlook is positive, there remain some challenges nonetheless!

In several rural areas, unreliable electric supply poses a threat to production schedules while also raising the operational costs. Manufacturers are forced to rely on backup systems, which reduces cost competitiveness.

Limited warehousing facilities and last-mile connectivity also reportedly offer challenges, affecting supply chain reliability and turnaround times.

However, solutions are not that far. Infrastructure development is already underway, most notably through projects like the Eastern Freight Corridor, which is expected to significantly improve logistics.

This corridor will enhance connectivity with major ports and industrial centres, thereby enabling easier access to raw materials and reducing transportation delays for finished goods.

In parallel, the state government has reportedly taken proactive steps to allocate large tracts of land for industrial purposes, with a focus on textile parks and integrated garment clusters.

These developments are designed to accommodate modern factories and attract both domestic and foreign investors seeking cost-efficient and scalable production environments.

Several of these clusters are reportedly being designed with plug-and-play infrastructure, easing the entry barrier for manufacturers and reducing time-to-operations.

Bihar’s rising profile in the textile sector is also being aided by its competitive labour dynamics. The state’s large working-age population—most of whom are young, semi-skilled, and wage-competitive—represents a strategic advantage in an industry that remains highly labour-intensive.

This creates a workforce pipeline that can meet industry-specific demands with minimal lag.

The Bihar Industrial Investment Promotion Policy (BIIPP) has emerged as a critical growth enabler in this ecosystem. By offering targeted incentives tailored to the needs of manufacturing businesses, the policy aligns state support with market realities.

These include not only financial incentives but also institutional support, fast-tracked approvals, and sector-specific facilitation—key requirements for scaling operations quickly and sustainably.

Industry experts note that Bihar’s trajectory is timely. With global brands increasingly diversifying their sourcing strategies and India aiming to capture a larger share of the global textile market, non-traditional manufacturing destinations like Bihar stand to gain. The state’s potential lies in its ability to offer cost-effective and reliable production capacity by moving production away from congested and costlier hubs.

For exporters, manufacturers, and investors, Bihar today represents more than just a low-cost production base. It is a strategic growth opportunity—one that aligns with both domestic expansion and global supply chain realignment.

With proactive policy support, improving infrastructure, and deepening public-private collaboration, the state is setting the foundation for long-term industrial relevance in the textile and apparel sector.

While some infrastructure gaps and logistical challenges linger, Bihar is rapidly closing the gap between potential and performance and for an industry in transition, seeking scale, cost efficiency, and sustainability.

Fibre2Fashion News Desk (DR)