Christian Dior: Solid results in the first half of 2025 despite the prevailing environment

Core Insights - The Christian Dior Group reported a revenue of €39.8 billion for the first half of 2025, reflecting a 4% decrease compared to the same period in 2024, amidst a challenging geopolitical and economic environment [1][3][12] Financial Performance - Profit from recurring operations for the first half of 2025 was €9 billion, resulting in an operating margin of 22.6%, while net profit was €5.9 billion, with the Group share of net profit at €2.4 billion [3][4] - Key financial metrics showed a decline in revenue and profit across most business segments, with notable changes as follows: - Revenue decreased from €41.7 billion in 2024 to €39.8 billion in 2025, a 4% drop [3][5] - Profit from recurring operations fell from €10.6 billion to €9 billion, a 15% decline [3][5] - Net profit, Group share, decreased from €3 billion to €2.4 billion, a 22% drop [3][5] - Operating free cash flow increased by 29% to €4 billion [3][4] Business Segment Performance - Wines & Spirits: Revenue declined by 8% to €2.6 billion, with a significant drop in profit from recurring operations by 33% to €524 million, attributed to trade tensions affecting key markets [6][7] - Fashion & Leather Goods: Revenue decreased by 8% to €19.1 billion, with profit from recurring operations down 18% to €6.6 billion, although local customer demand remained resilient [7][8] - Perfumes & Cosmetics: Revenue remained stable at €4.1 billion, with a slight decline in profit from recurring operations by 4% to €425 million, driven by innovation and a selective retail approach [9][10] - Watches & Jewelry: Revenue was stable at €5.1 billion, but profit from recurring operations fell by 13% to €762 million due to ongoing investments in store renovations [10][11] - Selective Retailing: Revenue grew slightly to €8.6 billion, with profit from recurring operations increasing by 12% to €876 million, driven by Sephora's strong performance [11][12] Market Trends and Outlook - Local demand in Europe and the United States remained solid, while Japan experienced a decline due to a high base from tourist spending in 2024 [2][4] - The Group anticipates maintaining a strategy focused on enhancing brand desirability and product quality in the face of geopolitical and economic uncertainties [12][13]