LuxExperience's American depositary receipts surged after the company reported higher fiscal fourth-quarter sales and guiding for continued growth in the year ahead.

The ADRs rose 25%, to $8.90, on Wednesday putting them up about 6.5% year to date.

Before the bell LuxExperience posted a net sales increase of 19% to EUR663.8 million, topping Wall Street models for EUR633.3 million.

Looking ahead, the company expects strong top-line growth acceleration and significant profitability improvement in the coming year.

The company guided for net sales to grow in the mid- to high-single-digit percent range in its fiscal 2027, and for adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--margin at around 2% to 3%.

LuxExperience posted a net loss of 26.3 million euros, or EUR0.19 a share, for its three months ended June 30. That compares with a profit of EUR603.7 million, or EUR4.65 a share, a year earlier.

Analysts polled by FactSet had expected a quarterly loss of EUR0.08 a share.

Profitability was pressured by higher shipping and payment costs, as well as increased marketing and selling, general and administrative expenses.

Chief Executive Michael Kliger said the results underscore progress LuxExperience has made on its transformation plan in the past year.

"We are perfectly positioned to benefit from the sustained growth of digital luxury and the improvements in the global luxury sector," he said.