Company Performance - Kering, owner of Gucci, is at one of the lowest points in its history [1] - Francois-Henri Pinault's two-decade-long reign at Kering is ending [1]

Group 1 - Kering will hold a Combined General Meeting on September 9, 2025, at 3 p.m. Paris time at its headquarters [1][2] - The meeting will be accessible for shareholders both in person and via live broadcast on the company's website [2] - A Preliminary Notice of Meeting was published on July 30, 2025, detailing the agenda and proposed resolutions [3] Group 2 - The official Notice of Meeting was published on August 22, 2025, in the Bulletin des Annonces Légales Obligatoires and Les Affiches Parisiennes [4] - Shareholders can submit written questions until September 3, 2025, and must include a share ownership certificate [4] - Relevant documents for the General Meeting can be accessed or downloaded from Kering's website [5] Group 3 - Kering is a global luxury group with a portfolio of renowned brands including Gucci, Saint Laurent, and Bottega Veneta [6] - In 2024, Kering employed 47,000 people and generated revenue of €17.2 billion [6]

Core Points - Kering will hold a Combined General Meeting on September 9, 2025, at its headquarters in Paris, starting at 3 p.m. local time [1] - The meeting will be accessible both in-person and via live broadcast on the company's website [2] - Shareholders can submit written questions prior to the meeting, with a deadline of September 3, 2025, and must include a share ownership certificate [4] Company Information - Kering is a global luxury group that includes brands such as Gucci, Saint Laurent, and Bottega Veneta, focusing on creative excellence and sustainability [6] - In 2024, Kering employed 47,000 people and generated revenue of €17.2 billion [6]

Core Points - Kering has released a monthly statement regarding the total number of shares and voting rights as of August 15, 2025 [3] - The total number of shares is reported to be 123,420,778, with a total number of theoretical voting rights at 176,690,426 and exercisable voting rights at 175,866,991 [3][4] Summary by Category - **Company Information** - Kering is a société anonyme with a share capital of €493,683,112, headquartered at 40, rue de Sèvres, 75007 Paris [2] - **Shares and Voting Rights** - As of August 15, 2025, Kering has a total of 123,420,778 shares [3] - The total number of theoretical voting rights is 176,690,426, while the number of exercisable voting rights is 175,866,991 [3][4] - The calculation includes all shares with voting rights, excluding treasury shares stripped of voting rights [3][4]

Group 1 - South Korean consumers have the highest per capita luxury goods spending globally at approximately $325, with many young individuals resorting to loans for purchases [1][3] - A report from the Korea Financial Institute indicates that 18% of the debt among individuals aged 20 to 39 is spent on luxury goods, and about 17% of young workers in Seoul actively take loans to buy luxury items [3] - The cultural context in South Korea drives luxury consumption, where luxury items are seen as status symbols in job markets and social circles, exacerbated by high living costs and limited job opportunities [3] Group 2 - In contrast, the Chinese luxury market is experiencing a shift towards rational consumption, with a projected sales decline of 18%-20% in 2024, prompting major brands like LVMH and Kering to adjust their strategies [5] - The shift in consumer behavior in China reflects a transition from "symbolic consumption" to "value consumption," with discount channels becoming the preferred choice for entry-level luxury goods [5][7] - Young Chinese consumers are increasingly prioritizing value over brand logos, leading to a more mature approach to luxury spending, as evidenced by the popularity of discount platforms offering significant savings on luxury items [6][7]

Investment Rating - The report maintains an "Outperform" rating for the luxury goods sector [6]. Core Insights - The luxury goods sector in the Asia-Pacific region (excluding Japan) shows a sequential improvement, with Hermes demonstrating relative resilience [3][12]. - In Q2 2025, LVMH, Hermes, and Kering reported revenue changes in Asia (excluding Japan) of -6%, +5%, and -19% year-on-year, respectively [3][12]. - Hermes continues to grow across all regions, while LVMH and Kering face challenges, particularly in the Asia-Pacific market [3][12][28]. Summary by Sections 1. Luxury Goods Sector Performance - The luxury goods sector in Asia (excluding Japan) has improved sequentially, with Hermes showing a 5.6% year-on-year revenue increase in Q2 2025 [3][21]. - LVMH's revenue decreased by 4% to €19.5 billion, with a 22% drop in net profit to €5.7 billion, affected by macroeconomic uncertainties and currency fluctuations [14][15]. - Kering's revenue fell by 18% to €3.7 billion, with Gucci and YSL brands experiencing significant declines [28]. 2. Investment Recommendations - The report suggests focusing on sectors benefiting from policy support and consumer recovery, including major home appliances and pet products [30][31]. - Key companies to watch include Midea Group, Haier Smart Home, and Gree Electric for home appliances, and brands like Anta Sports and Li Ning in the apparel sector [30][31]. 3. Market Trends - The home appliance sector saw a weekly increase of 2.3%, while the textile and apparel sector rose by 4.23% [34][36]. - Cotton prices are reported at ¥15,178 per ton, reflecting a slight decrease of 0.54% [36].

Macro Environment - In Q2 2025, global macroeconomic pressures increased, with the IMF lowering global economic growth forecasts in April. Luxury consumption in North America saw a narrowing decline in April-May, followed by an expanded decline in June [1] - Swiss watch exports to the US accelerated in Q2 2025, while exports to China decreased, and Japan and Europe experienced a decline [1] - The strengthening Euro impacted luxury companies' revenue, while the depreciation of the Renminbi against the Euro and Yen may affect overseas consumption [1] Mid-Year Performance - In Q2 2025, luxury companies' revenues generally fell short of expectations, with profit realization showing divergence [1] - Most companies experienced a slowdown or negative growth in revenue, with a majority seeing a decline in net profit margins [1] - By region, the Americas showed acceleration, while tourism consumption in Europe and Japan was affected by high base effects, and Greater China remained under pressure, although some brands showed signs of recovery [1] - By brand, Miu Miu led with a 40% increase, while Canada Goose saw significant acceleration [1] Growth Drivers Assessment - The impact of European tourism is expected to continue into Q3's peak season, while North America faces high base effects in Q4, leading to ongoing uncertainty for the year [1] - Price increases have been implemented by Hermès, Kering, and Prada in H1 2025, with single-digit growth rates. Some brands plan to expand price ranges by increasing accessory products (LVMH) and lowering entry-level product prices (Prada) [1] - Companies continue to invest in expenses, with a high direct sales ratio, indicating that positive operating leverage remains a key driver for margin improvement [1] Industry Trend Outlook - Brands such as Gucci, BV, Dior, and Miu Miu plan to launch significant new products for the autumn-winter season [1] - It is anticipated that luxury consumer segments may further differentiate, with high-net-worth customers showing strong brand loyalty, while aspirational customers may shift their preferences from brand-driven to product and cultural value-driven [1] - In Q2 2025, Miu Miu topped the Lyst rankings again, with the top five brands remaining consistent with Q1, although there were changes in rankings, and Burberry and Birkenstock entered the top 20 [1] Stock Prices and Valuation - Year-to-date in 2025, most luxury companies have underperformed compared to the major stock indices, with Burberry and Tapestry significantly outperforming (by 20 percentage points and 59 percentage points, respectively) [2] - The consensus forecast for luxury companies in 2025 indicates an expected revenue growth rate of approximately 1.8% and a net profit growth rate of -2.3%, suggesting that operational leverage impacts will persist in the short term [2]

Investment Rating - The report provides a mixed investment rating for the luxury goods sector, with specific companies like LVMH and Hermès showing resilience, while others like Kering and Canada Goose are facing significant challenges [22][30]. Core Insights - The luxury goods market is experiencing a slowdown, with overall retail sales in North America showing fluctuations, particularly in the luxury segment, which saw a decline of up to 14% in certain months [6][22]. - The report highlights a significant disparity in performance among luxury brands, with LVMH and Hermès maintaining positive growth, while Kering and Canada Goose reported substantial declines in revenue [22][30]. - The global economic outlook remains cautious, with the IMF projecting a world GDP growth of 3.2% for 2025, which may impact consumer spending in the luxury sector [4]. Summary by Sections Economic Outlook - The IMF forecasts a global GDP growth of 3.2% for 2025, with developed countries expected to grow at 1.8% and emerging markets at 4.2% [4]. - China is projected to grow at 4.5%, while India is expected to lead with a growth rate of 6.5% [4]. Retail Performance - North American retail sales showed a mixed performance, with overall sales declining by 0.4% in June 2024, while luxury retail sales experienced a more severe drop of 14% [6]. - The luxury segment's performance is expected to remain volatile, with some months showing recovery while others continue to decline [6]. Company Performance - LVMH reported a revenue decline of 7.1% in Q2 2025, while Hermès showed a more stable performance with a decline of only 0.5% [22][30]. - Kering faced a significant revenue drop of 17.9%, indicating challenges in its luxury brand portfolio [30]. - Canada Goose reported a staggering decline of 61.8% in its latest quarter, highlighting severe operational challenges [30]. Market Trends - The report notes a shift in consumer behavior, with a growing preference for brands that offer unique and aspirational products, impacting traditional luxury brands negatively [22]. - The luxury watch segment, particularly Swiss watch exports, saw a decline of 5.6% in June, indicating broader market challenges [10]. Regional Insights - The report emphasizes the importance of the Chinese market for luxury brands, with a notable increase in Chinese tourists traveling to Japan and the U.S., which could influence luxury spending patterns [17]. - The performance of luxury brands varies significantly by region, with some brands performing better in Asia compared to North America and Europe [22].

Group 1: Financial Performance of Brands - Adidas reported lower-than-expected revenue but exceeded profit expectations, while VF and Puma had mixed results with VF outperforming on both revenue and profit, and Puma underperforming [1] - Adidas maintains its full-year revenue growth guidance and operating profit target of €1.7-1.8 billion, while VF expects a 2%-4% decline in revenue for FY26Q2 at constant exchange rates [1] - Puma anticipates a double-digit decline in revenue for FY25, with U.S. tariffs expected to negatively impact gross profit by approximately €80 million [1] Group 2: Impact of Tariffs - The recent U.S. tariffs are expected to significantly affect the profits of overseas sports brands throughout the fiscal year [1] - Adidas indicated that tariffs resulted in a negative impact of several million euros in FY25Q2, with an anticipated cost increase of €200 million in H2 due to current tariff conditions [1] - Kering plans to adjust prices to mitigate the impact of the 15% U.S.-Europe tariff, having already implemented price increases in Q2 and planning further adjustments for autumn products [2] Group 3: Opportunities for Manufacturers - The new U.S. tariffs, effective July 31, are expected to benefit cotton spinning leaders, as Southeast Asian countries face varying tariff rates, leading to increased procurement needs from overseas garment and footwear factories [3] - Manufacturers with established overseas production capabilities, such as Tianhong International Group and Baolong Oriental, are likely to gain from the shift in procurement patterns [3] - The trend of overseas brands considering sharing tariff costs with suppliers may further highlight the advantages of midstream yarn and fabric manufacturers with overseas production [3] Group 4: Investment Recommendations - The report recommends investing in high-growth segments such as Anta Sports and Xtep International, as well as companies like Hailan Home that are expected to improve in mid-year reports [4] - Manufacturers with positive mid-year forecasts, such as Baolong Oriental and Tianhong International Group, are highlighted as potential investment opportunities [4] - The report also suggests investing in undervalued Hong Kong stocks like Jiangnan Buyi and Tobo, and brands expected to benefit from the U.S. "Big and Beautiful" act, such as Samsonite and Prada [4]

Kering ( OTCPK:PPRUF ) ( OTCPK:PPRUY ) shares are down 55% over the past five years, as the company failed to keep up with the industry when it was booming but is a full participant in the ongoing industry rout, with six consecutive Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation ...