Group 1 - The article suggests diversifying investment portfolios away from US-heavy allocations due to potential tariff threats that could reshape global trade, with a focus on high-quality European stocks that have geographically diversified revenue streams [1] - The emphasis is on investing in high-quality businesses with strong growth potential, solid fundamentals, industry-leading profitability, low leverage, and room for growth, particularly in the US and Europe [1] - The investment strategy discussed is centered around capital allocation and identifying businesses that are worth holding for the long term, highlighting the importance of thoughtful portfolio building [1]

Group 1 - The article discusses the potential imposition of a 50% tariff on EU products by the U.S. starting June 1, as suggested by President Trump, citing unfair trade practices by the EU [1] - The EU has not yet commented on this new threat and is awaiting discussions between EU trade officials and U.S. representatives [1] - Following the announcement, European stock markets fell sharply, with major indices in the UK and Germany dropping over 1.5%, and luxury goods stocks like LVMH and Hermès declining more than 3% [1] Group 2 - The European luxury goods industry, which includes products like handbags and fashion, is highly sensitive to overseas markets, with the U.S. being a key growth area for the sector this year [2] - France and Italy are the largest exporters of luxury goods to the U.S., with the French luxury sector employing over 600,000 people [2] - Bernard Arnault, chairman of LVMH, emphasized the need for the EU to soften its stance on U.S. trade demands to avoid high tariffs and protect European jobs, as the U.S. market accounts for 25% of LVMH's annual sales [2] - Industry experts indicate that establishing manufacturing facilities in the U.S. to circumvent tariffs is currently impractical due to a lack of skilled labor and expertise [2] - A recent S&P report highlighted that the luxury goods sector is one of the most affected by U.S. tariffs, suggesting that price adjustments may be the primary method for companies to mitigate tariff impacts, although some brands may have limited pricing power due to consumer purchasing capacity [2]

Group 1 - Hermes is experiencing challenges as its peers face significant struggles, with declining revenue and unaccounted growth [1] - The shares of Hermes are unable to find a stable floor amidst the difficulties faced by the industry [1] Group 2 - The investment strategy focuses on companies with strong qualitative attributes, aiming to buy at attractive prices based on fundamentals and hold long-term [2] - The portfolio management approach emphasizes avoiding losers while maximizing exposure to high-potential winners, often resulting in a 'Hold' rating for great companies if their growth opportunities are below the threshold or if downside risks are too high [2]

Core Viewpoint - The luxury goods industry is experiencing a temporary cooling period, but this is seen as a market adjustment rather than a long-term trend. The demand for luxury goods is deeply rooted in human nature and transcends economic conditions [1][2][15]. Group 1: Market Resilience - Historical data shows that the luxury goods market has consistently demonstrated strong recovery after crises, such as the 2009 financial crisis and the 2020 pandemic, with a compound annual growth rate of over 5% since 2000 [3][15]. - The luxury goods sector is characterized by a unique ability to rebound, as evidenced by brands like Hermès and Bottega Veneta, which have thrived even during downturns by maintaining exclusivity and quality [3][12][13]. Group 2: Consumer Demographics - The primary consumers of luxury goods include ultra-high-net-worth individuals, stable high-net-worth individuals, and culturally aware middle-class consumers, who are less affected by economic downturns [6][8]. - Emerging markets, particularly in Asia, are seeing a rise in affluent consumers, while the "Henry" group in the U.S. represents a significant target demographic for luxury brands [8][21]. Group 3: Brand Dynamics - Luxury brands possess a strong competitive advantage through their historical narratives and cultural significance, which create a protective moat against market fluctuations [9][12]. - The luxury sector benefits from absolute pricing power and supply control, allowing brands to maintain exclusivity and resist deflationary pressures [12][13]. Group 4: Current Market Trends - The current downturn in the luxury market is viewed as a necessary cleansing process, eliminating unsustainable growth patterns and allowing for a focus on high-quality brands [15][16]. - The luxury industry is entering an era dominated by "super brands," which are outperforming the market average due to their scale, brand equity, and emotional connection with consumers [20]. Group 5: Future Opportunities - New growth drivers are emerging in the luxury market, particularly in regions like China, Southeast Asia, and the Middle East, as well as among younger generations who prioritize sustainability and personalization [21]. - The luxury goods sector is adapting its value system and growth logic to align with evolving consumer demands, indicating a robust long-term outlook despite short-term fluctuations [21].

Core Insights - The company EG 427 is at the forefront of developing non-replicating HSV-1 (nrHSV-1) vector technology for neurological applications, with data to be presented at the ASGCT meeting [1][4] - The innovative dual-payload nrHSV-1 vector allows for the delivery of multiple transgenes with distinct expression dynamics, providing a significant advantage over existing vector technologies [3][6] - The company has initiated a phase 1/2 clinical study of its lead candidate, EG110A, targeting neurogenic bladder-related incontinence, marking a significant milestone in its development pipeline [4][7] Vector Technology - The nrHSV-1 vector technology enables the expression of two different transgenes controlled by independent regulatory elements, allowing for varied expression durations [2][6] - In vivo studies demonstrated that the vector can achieve high transgene expression in specific neuronal populations, with stable expression levels observed for at least six weeks post-administration [2][6] - The HERMES platform utilized by the company allows for targeted biodistribution of therapeutic proteins within the brain, addressing a range of neurodegenerative diseases [8] Clinical Development - The first patient has been treated in a clinical study of EG110A, which aims to address multiple severe bladder diseases, potentially improving patient care and reducing healthcare costs [4][7] - The ongoing research supports the company's vision of developing genetic medicines that are safe, targeted, and cost-effective for chronic neurological diseases [4][6] Future Prospects - The advancements in nrHSV-1 vector technology are expected to facilitate pipeline growth by addressing challenges in genetic medicine for prevalent pathologies [6][8] - The ability to deliver gene editing proteins and corrected genes through a single vector could revolutionize treatment approaches for autosomal dominant diseases [3][6]

Core Insights - Health Monitor Network achieved recognition at the 2025 Hermes International Creative Awards, winning all 12 submissions, including six platinum awards, highlighting its excellence in point of care advertising [1][2] - The awards celebrate impactful educational content across various platforms, including print and digital Patient Guides, Clinician Updates, digital exam-room screens, and a podcast, emphasizing the company's commitment to empowering patients and healthcare providers [1][5] - The Hermes Creative Awards are administered by the Association of Marketing and Communication Professionals (AMCP), which is known for evaluating creative work across a wide range of organizations, including Fortune 500 companies [3] Company Overview - Health Monitor Network has over 40 years of experience as a targeted healthcare marketing platform for the Pharma/OTC industry, creating bespoke healthcare education to enhance patient-physician dialogues [5] - The company boasts the largest proprietary physician office network in the industry, with over 250,000 offices and more than 450,000 healthcare professionals engaging with its omnichannel educational products [5] - Health Monitor delivers premium point of care content that empowers patients and healthcare providers with trusted information, aiming for optimal health outcomes and impactful ROI for brands [5]

Core Insights - TransPerfect Media has received three EGA Hermes Awards for Localization Excellence, highlighting its achievements in media localization and post-production [1][4] - The company has expanded its global studio network and invested in technology R&D, enhancing its capabilities through strategic acquisitions [2][4] - TransPerfect Media's hybrid model integrates AI technology with creative expertise, facilitating efficient localization and distribution [5][6] Awards and Recognition - Awards received include Best Voice Performance for a Television Series, Best Voice Performance for a Feature, and Best Overall Dubbing for a Feature [4] - Nominations include categories such as Best Dub Audio Mixing for a Series and Best Script Adaptation for a Dubbed Audio [4] Company Overview - TransPerfect is the largest provider of language services and AI solutions, operating in over 140 cities and offering services in more than 200 languages [3] - The company is ISO 9001 and ISO 17100 certified, emphasizing its commitment to quality and client service [3] Strategic Developments - Recent acquisitions include SPEEECH, Blu Digital Group, and The Mill and MPC studios, which enhance TransPerfect Media's creative and production capabilities [2] - The company operates a network of studios in 19 countries, providing comprehensive media creation and globalization solutions [4]

Core Viewpoint - Hermes plans to increase prices in the US to mitigate the impact of President Trump's tariffs on the European Union, specifically the current 10% tariff [1][4]. Group 1: Financial Performance - Hermes reported a 7.2% increase in total first-quarter sales, adjusted for currency movements, which is below the 18% growth seen in the previous quarter [5][8]. - The company's revenue for the first quarter was $4.69 billion, up from $4.33 billion the previous year, but slightly below analysts' forecasts of $4.7 billion [8][12]. - Growth was observed across all areas, particularly in the Americas, with strong momentum in the US noted in March [9]. Group 2: Market Context and Strategy - The price hike is a strategic response to the tariffs, which were initially threatened at 20% but were reduced to 10% for a 90-day negotiation period [4][11]. - Analysts suggest that Hermes is better positioned than many competitors due to its retained pricing power and consistent outperformance in the luxury sector [8]. - The company remains optimistic about revenue growth despite global economic uncertainties, reaffirming its ambitious goals for growth at constant exchange rates [10]. Group 3: Competitive Landscape - Hermes recently surpassed LVMH as the world's most valuable luxury group, with a market capitalization of approximately $280 billion compared to LVMH's $279 billion following LVMH's weaker-than-expected sales [12]. - The luxury market is experiencing volatility, with analysts cautioning that the recent surge in US sales may be a temporary phenomenon as consumers rushed to purchase items before tariffs took effect [9].

Financial Data and Key Indicators Changes - The group's consolidated revenue reached EUR 4.1 billion in Q1 2025, up 9% at current exchange rates and 7% at constant exchange rates [3] - Currency fluctuations had a positive impact of EUR 49 million on revenue [3] - The outlook for 2025 remains unchanged despite a more uncertain economic and geopolitical context [5] Business Line Data and Key Indicators Changes - Leather goods and saddlery grew by 10%, driven by new models [11] - Ready-to-wear and accessories increased by 7%, with successful presentations of new collections [13] - Silk and textiles grew by 5%, while perfume and beauty remained stable [14] - Watches continued its strategy with new complications unveiled, but faced challenges [15] Market Data and Key Indicators Changes - Asia (excluding Japan) grew by 1%, with local client loyalty driving sales despite a downturn in Greater China [7] - Japan recorded a growth of 17%, supported by local client loyalty [8] - The Americas grew by 11%, with strong performance in the U.S. [9] - Europe (excluding France) grew by 13%, while France saw a growth of 14% [9][10] Company Strategy and Development Direction - The company is reinforcing investments in production capacity with three additional leather workshops planned over the next three years [4] - Hermès aims to distribute over EUR 500 million to employees in profit sharing for 2024, reflecting its commitment to responsible employment [4] - The company continues to focus on a value-based strategy to maintain revenue levels [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties due to a highly integrated artisanal model [5] - There is cautious optimism regarding growth, with expectations of single-digit growth rather than double-digit [44] - The company remains vigilant about geopolitical changes impacting financial markets [44] Other Important Information - The company plans to open two new stores in the U.S. in H2 2025 [9] - Inventory levels have returned to normal, particularly for leather goods [24][72] Q&A Session Summary Question: Changes in trends due to U.S. news and tariffs - Management reported 11% growth in the Americas, with no significant changes in trends observed for early April [18][20] - Tariff levels have not been finalized, but price increases will be implemented to offset the impact [22] Question: Performance in Asia Pacific and Greater China - Growth in Greater China was flat compared to Q1 2024, attributed to a high comparative basis [28] - Taiwan showed dynamic growth, while Macau faced challenges due to a drop in Chinese tourists [29] Question: Breakdown of volume, price, and mix for Q1 - Mature markets showed solid growth with increasing volumes, particularly in France, Europe, and Japan [37] - Challenges were noted in silk and fashion accessories, particularly in China [38] Question: Future growth expectations - Management remains ambitious but cautious, expecting single-digit growth rather than double-digit [44] Question: Inventory levels and profitability - Low inventory levels were primarily noted in leather goods, while other categories were at normative levels [72] Question: Tariffs and price increases - Price increases in the U.S. will aim to offset the 10% tariff, with no increases planned for other regions [55][64]

Core Insights - LVMH has lost its title as the world's most valuable luxury company, with a market capitalization of approximately 244.1 billion euros, falling below Hermes, which has a market cap of 248.1 billion euros [1][3] Financial Performance - LVMH reported total revenue of 20.3 billion euros for the first quarter, reflecting a 3% organic decrease year over year, which did not meet analyst expectations and led to a decline in LVMH shares [5] - The fashion and leather goods segment of LVMH experienced a 5% organic year-over-year drop in revenue, totaling 10.1 billion euros in the first quarter [6] - Revenue from the wine and spirits segment was 1.3 billion euros, showing a 9% decrease, while watches and jewelry remained stable, and both perfumes and cosmetics and selective retailing segments saw a 1% organic decline compared to the first quarter of 2024 [6] Regional Performance - LVMH noted that Europe achieved growth on a constant consolidation scope and currency basis, while the United States experienced a slight decline despite good performance in Fashion & Leather Goods and Watches & Jewelry [7] - Japan's performance was down compared to the first quarter of 2024, which had benefited from strong growth in Chinese consumer spending [7] Company Outlook - LVMH expressed that it remains vigilant and confident at the start of the year, despite facing a disrupted geopolitical and economic environment [9]