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LuxExperience B.V. - Sponsored ADR (LUXE) Soars 6.1%: Is Further Upside Left in the Stock?

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LuxExperience B.V. - Sponsored ADR (LUXE - Free Report) shares ended the last trading session 6.1% higher at $8.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.1% loss over the past four weeks.

LuxExperience’s stock rally reflects the ongoing strength of its core Mytheresa business. Robust GMV growth, increased spending by top customers, expanding product margins, and strong profitability continue to highlight the resilience of the Mytheresa model, even amid macroeconomic headwinds. The company is also poised to benefit from its expanded partnership with Prada, now covering global distribution rights, including the U.S.

Following the successful acquisition of YOOX NET-A-PORTER, LuxExperience remains confident in the medium- and long-term potential of the combined entity. Backed by a strong track record of execution and performance, the company reaffirmed its medium-term target of achieving approximately €4 billion in annual net sales and an adjusted EBITDA margin of 7–9%.

This company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of -550%. Revenues are expected to be $571.17 million, up 137.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For LuxExperience B.V. - Sponsored ADR, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LUXE going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

LuxExperience B.V. - Sponsored ADR belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, Under Armour (UAA - Free Report) , closed the last trading session 2.6% higher at $6.74. Over the past month, UAA has returned -7.6%.

Under Armour's consensus EPS estimate for the upcoming report has changed -0.8% over the past month to $0.03. Compared to the company's year-ago EPS, this represents a change of +200%. Under Armour currently boasts a Zacks Rank of #4 (Sell).


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