Financial Data and Key Metrics Changes - The company reported net revenues of €2,740 million, up 9% versus H1 2024 at constant FX, with a drag from FX of 160 basis points, leading to an increase of 8% at current exchange rates [17] - Retail sales reached €2,450 million, up 10% versus H1 2024 at constant FX [18] - EBIT adjusted reached €619 million in H1 2025, with a margin of 22.6%, showing steady profitability compared to H1 2024 [19] - Net income for the period was €386 million, in line with the same period last year [24] - Cash flow from operations reached €696 million, and the net cash position stood at €352 million [19][26] Business Line Data and Key Metrics Changes - Retail sales for the Prada brand were down 2% in the semester, primarily impacted by Japan and Europe due to lower tourist flows [20] - Miu Miu experienced a 49% retail sales growth in the semester and 40% in Q2, now contributing to 32% of group retail sales compared to 23% in H1 2024 [21] - Churches brand saw a 4% increase in retail sales for the semester and 6% in Q2 [21] Market Data and Key Metrics Changes - Retail sales in Asia Pacific were up 10% in the semester, with stable trends between quarters [22] - Europe saw a 9% increase, with Q2 impacted by lower tourist spending [22] - The Americas showed improvement in Q2, with both local and traveler spending increasing [22] - The Middle East delivered the best performance, up 26% in H1 [23] Company Strategy and Development Direction - The company is focused on maintaining strong brand desirability and investing in new products and collections [8][9] - There is an emphasis on enhancing customer relationships and hospitality, exemplified by the opening of a new men's store on Fifth Avenue [9] - The company is navigating a resetting industry and is committed to long-term growth despite current challenges [28][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a cyclical downturn led by tourism and a resetting luxury market after years of growth [6][7] - There is cautious optimism about the second half of the year, with expectations of improved performance as comparisons ease [39][40] - The company is focused on maintaining full-price sales and improving operational efficiencies [30] Other Important Information - The company is advancing its environmental strategy, including lower impact raw materials and responsible chemical management [15] - Significant investments have been made in diversity and inclusion initiatives, as well as ocean literacy and preservation efforts [15][16] Q&A Session Summary Question: Insights on American and Chinese clusters in Q2 - The Chinese market was softer than Q1, with subdued local demand and weaker travel transactions. North America showed low single-digit growth with improving local demand but weakening traveler spending [34][35] Question: Outlook for Q3 and easier comparisons - Q3 is expected to be softer, with tourism traffic likely to break even in August. There are easier comparisons in Q3 versus Q2 [39][40][118] Question: Prada brand's new collection and pricing strategy - The focus is on maintaining credibility at higher price points while ensuring a well-balanced collection. The company aims to improve customer engagement and hospitality [46][47] Question: Operating leverage in H1 and expectations for H2 - The company is pleased with the trajectory but emphasizes the importance of ongoing investments for long-term growth, expecting to maintain EBIT growth if top-line growth continues [50][52] Question: Versace acquisition timeline and management plans - The acquisition is expected to finalize between September and November, with careful management of the brand's identity and positioning [54][55] Question: Retail KPIs and areas for improvement - The company acknowledges a gap in retail culture and commercial attitude compared to the best in the industry, indicating ongoing efforts to improve customer interaction and service [74][75] Question: Trends in product categories and pricing - Ready-to-wear and shoes have been the strongest categories, while leather goods have gained market share despite overall market weakness [78][79] Question: Miu Miu's growth strategy - Miu Miu is underpenetrated in many markets, with plans for geographical expansion and product category growth, particularly in leather goods [110] Question: Impact of tourism on Prada brand - Q3 is expected to see continued cyclical demand pressure related to tourism, with a share of tourist spending roughly 30% globally [119][120] Question: Marketing costs and future expectations - Marketing costs were up 16% year-on-year, with significant phasing expected to normalize throughout the year [121][122]