Core Viewpoint - The financial reports of LVMH and Kering indicate a significant recovery in the luxury goods sector, as evidenced by improved year-on-year revenue growth in Q3 compared to the previous two quarters [1][9]. Group 1: Company Performance - LVMH's quarterly revenue growth rates were -3%, -4%, and 1%, showing a positive shift in Q3 [1]. - Kering's revenue growth rates were -14%, -15%, and -5%, with a notable reduction in the decline in Q3 [1]. - Prada maintained stable revenue growth rates of 13%, 8%, and 8% across the quarters [2]. - Hermès showed increasing revenue growth rates of 7%, 9%, and 10% in the same period [3]. Group 2: Regional Sales Performance - LVMH saw improved revenue growth in all regions except Europe, with the U.S. and Asia (excluding Japan) achieving positive growth rates of 3% and 2%, respectively [4]. - Kering reported a significant recovery in North America, with a positive growth rate of 3% in Q3, while the Asia-Pacific region (excluding Japan) saw a 10% decline, which was a substantial improvement [5]. - Prada's retail sales in the Asia-Pacific region (excluding Japan) grew by 10%, while the Americas saw a 14.8% increase in retail sales [4][5]. - Hermès experienced revenue growth across all regions, with North America leading at 14% [5]. Group 3: Market Trends and Influences - The luxury goods market's recovery is significantly influenced by the performance of the U.S. stock market, which has a strong correlation with luxury spending [6][7]. - The increase in wealth among high-net-worth individuals in the U.S. has contributed to the growth in luxury goods consumption [6]. - The depreciation of the Japanese yen has attracted foreign tourists to Japan, boosting luxury sales there, although this trend is expected to reverse as the yen strengthens [7][8]. Group 4: Future Outlook - The sustainability of the recovery in the luxury sector will depend on whether the positive trends in Q3 can continue into Q4, as companies face high base effects from the previous year [11].

Core Insights - The ultra-luxury resale market is undergoing a significant transformation, shifting from mere shopping choices to platforms for personal narrative and smart investment [2][6][15] - Consumers are increasingly viewing second-hand luxury items as a means to express individuality and resist mass production, while also serving as a hedge against inflation [6][15] - The report highlights generational differences in consumer preferences, with Gen Z favoring top-tier brands like Hermès, while Millennials remain loyal to classic brands such as Louis Vuitton and Chanel [9] Market Trends - The ultra-luxury second-hand market is redefining luxury consumption, emphasizing long-lasting value and personal expression over fleeting trends [2][3][6] - Goyard has emerged as a standout brand, with a 400% increase in search volume, indicating a shift in consumer interest towards unique designs [11] - The rise of "tactile economy" is evident, with increased demand for materials like denim, suede, and metallic finishes, reflecting consumers' desire for multi-dimensional sensory experiences [11] Future Outlook - Authenticity is projected to become the ultimate pursuit in luxury goods, with a focus on humanized expression and deeper personal connections with fashion items by 2026 [13] - The ultra-luxury second-hand market is positioned as an innovative platform that transcends traditional fashion industry boundaries, driven by narrative value and investment attributes [15]

Core Insights - Ralph Lauren's new product, a "cowhide leather firewood tote" priced at 5,390 yuan, has sparked widespread discussion due to its unique design and practical use [3] - The product is part of the limited edition fall collection for 2025, launched on September 3, and is made from coarse cowhide leather sourced from Ralph Lauren's ranch in the U.S. [3] Financial Performance - Ralph Lauren reported a 14% year-over-year increase in net revenue for Q1 of fiscal year 2026, reaching over $1.7 billion [6] - Net profit attributable to shareholders rose by 30.7% to $220 million [6] - The company opened 24 new self-operated and partnership stores during the first quarter [7] Regional Growth - Revenue growth was led by Asia and Europe, both achieving double-digit increases, with Asia's total revenue growing by 21% to $474 million [7] - North America saw an 8% growth in revenue [7] - In China, Ralph Lauren experienced over 30% year-over-year growth in the first quarter, highlighted by the first fashion show in Shanghai and a flagship store opening on October 15 [7]

Core Viewpoint - The article discusses Europe's dependency on China's rare earth resources and the challenges it faces in attempting to regain control over its supply chain, highlighting the historical context and current geopolitical dynamics [1][2][4]. Group 1: Historical Context - In the late 20th century, European leaders decided to outsource the "dirty work" of rare earth mining and processing, believing it would allow them to focus on cleaner, high-tech industries [1][2]. - This decision led to a situation where China capitalized on the discarded resources, becoming the global leader in rare earth production and technology [2][4]. Group 2: Current Challenges - Europe is now facing a crisis as it realizes its heavy reliance on China for rare earth elements, which are essential for its green energy and advanced manufacturing sectors [2][4]. - The EU has introduced a "counter-coercion tool" to address economic pressures from China, but this tool has not yet proven effective in practice [4][6]. Group 3: Internal Conflicts - The EU's internal divisions pose a significant challenge; member states have conflicting interests regarding trade with China, particularly in industries like automotive and luxury goods [6][7]. - The proposed "self-reliance" initiative to develop local mining and manufacturing capabilities faces significant hurdles, including lengthy approval processes and high environmental standards [6][7]. Group 4: Long-term Outlook - The path to self-sufficiency in rare earth production is expected to be long, costly, and fraught with difficulties, making it unlikely that Europe can quickly resolve its current dependency on Chinese imports [7][9]. - The competition is not balanced; China holds advantages in resources, technology, and market access, while Europe struggles to find effective solutions to its supply chain issues [9][11].

Core Insights - Salvatore Ferragamo reported a consolidated revenue of €221 million for Q3 2025, remaining stable compared to the same period last year at current exchange rates [1] - For the first nine months of the year, the group's total revenue reached €695 million, reflecting a year-on-year decline of 6.6% [1] Regional Performance - The EMEA (Europe, Middle East, and Africa) region experienced a net sales increase of 2.8% in Q3 [1] - North America saw a significant growth of 15.6% in net sales [1] - In contrast, the Asia-Pacific region faced a decline of 10.5% [1] - The positive performance in North America, Europe, and Latin America offset the challenges in the Asian luxury goods market [1]

Core Insights - Bernard Arnault has been intensifying his efforts to strengthen control over LVMH, the luxury goods giant he founded nearly 40 years ago, with significant stock purchases in the past eight months totaling approximately €1.4 billion (around $1.6 billion) [1][2] - The recent stock acquisitions occurred during a period of weak corporate earnings and a downturn in the luxury goods sector, leading to a substantial decline in LVMH's stock price [1][2] - Arnault's stake in LVMH is a significant portion of his wealth, with a reported net worth of $195 billion and a 49% ownership of the company's equity, translating to nearly 65% of voting rights [1][2] Stock Acquisition Details - Arnault has acquired about 2.5 million shares of LVMH, representing approximately 0.5% of the company's total shares, through his family holding company Financière Agache and the publicly traded Christian Dior SE [2][5] - The average purchase price for these shares was around €566, with a notable low of €448 in June, while the stock closed at €612 last week [2][5] - The total amount of shares purchased as of mid-September is significantly higher than in previous years, coinciding with a recent unexpected recovery in sales reported by LVMH [2] Strategic Intent - Analysts suggest that Arnault's aggressive stock purchases may reflect a desire to achieve "absolute majority" control over LVMH, despite already holding nearly two-thirds of the voting rights [5] - The value of Arnault's investments outside of LVMH is relatively small, estimated at around €4 billion, indicating a strong focus on consolidating his position within the luxury sector [5] - Arnault has a history of strategic acquisitions, including a significant transaction in 2017 to simplify ownership structures, which aligns with his long-term vision for LVMH [6][7] Historical Context - The recent stock purchases echo Arnault's previous strategy during the 2008 financial crisis when he acquired LVMH shares at low prices, which later appreciated significantly [7]

Group 1: Luxury Goods Industry - The luxury goods sector in Q3 2025 showed better-than-expected performance, particularly in North America, with a slight improvement in consumption in mainland China [3][4] - Major brands like LVMH, Hermès, KERING, and PRADA reported revenue changes of +1.0%, +9.6%, -5.0%, and +8.5% respectively, all exceeding consensus expectations [3] - Miu Miu led the industry with a 29% revenue increase, while Hermès maintained a steady growth trend with a 9.6% increase [3] Group 2: Retail Performance in China - In September, China's retail sales for clothing and textiles grew by 4.7% month-on-month, indicating a faster pace compared to August [5] - The online retail sales of clothing items increased by 2.8% year-on-year from January to September, showing an acceleration in growth [5] - The export of Swiss watches showed a month-on-month improvement, with a 17.8% increase in exports to China, recovering from a significant decline in the previous year [5] Group 3: Adidas and Deckers Financial Guidance - Adidas reported Q3 revenue of €6.63 billion, with a neutral year-on-year growth of 8%, but raised its full-year revenue guidance to a neutral growth of 9%, below the consensus of 10% [4] - Deckers' FY26 Q2 revenue was $1.43 billion, a 9% year-on-year increase, but its full-year guidance of $5.35 billion fell short of the consensus expectation of $5.45 billion [4] - Deckers anticipates that tariff impacts will become more pronounced in the second half of FY26, affecting consumer attitudes [4] Group 4: Tobacco Industry Trends - The new type of oral tobacco products, combining heated non-combustible and vaporized electronic cigarette characteristics, is gaining popularity globally [10] - The market for new oral tobacco products is expected to grow due to lower tax rates and less intense competition compared to vaporized electronic cigarettes [10][11] - PMI's $16 billion acquisition of ZYN's parent company and the FDA's approval of ZYN products are expected to catalyze industry growth [12]

Core Viewpoint - Prada's third-quarter revenue increased by 9% year-on-year at constant exchange rates, totaling €1.33 billion, slightly exceeding market expectations [1] Financial Performance - The company has adjusted its net profit forecast for the year down by 7.5% to €880 million due to adverse foreign exchange impacts and anticipated additional loans for the acquisition of Versace, which will raise financial costs [1] - Revenue and EBIT forecasts for the current year have been reduced by 6.1% and 6.9%, respectively, to €5.731 billion and €1.359 billion [1] - For the next year, revenue forecasts have been lowered by 9.6% to €6.155 billion, with EBIT and net profit forecasts adjusted down by 13.2% and 14.1%, respectively, to €1.492 billion and €976 million [1] Market Position - The company maintains an "outperform" rating and a target price of HKD 75 despite the competitive landscape becoming more intense [1]

Investment Rating - The report maintains a positive outlook for Hermès, indicating an "Outperform" rating for the stock over the next 12-18 months [20]. Core Insights - Hermès reported Q3 FY25 revenue of €3.9 billion, reflecting a 10% year-on-year growth at constant exchange rates, with a cumulative revenue of €11.9 billion for the first nine months, up 9% at constant rates [8][12]. - The company continues to show resilience in a high base environment, with strong performance across various regions and product categories [5][12]. Regional Performance - The Asian market (excluding Japan) grew by 4% year-on-year, with significant improvements in Greater China due to brand loyalty and optimized store networks [2][9]. - Japan's market saw a remarkable 15% growth, primarily driven by local customer repurchases [2][9]. - The Americas experienced a 13% increase, supported by new store openings in the U.S. [2][9]. - Europe also performed well, with a 12% growth excluding France and 9% growth in France [2][9]. - The Middle East and other regions maintained a high growth trend of 15% [2][9]. Product Category Performance - Hermès's core leather goods and saddlery segment grew by 13% year-on-year, driven by popular product lines [3][10]. - The perfume and beauty segment declined by 5% due to a high base effect from the previous year [3][10]. - The watchmaking division maintained solid momentum, with plans for capacity expansion [3][10]. - Jewelry and homeware continued to show strong growth, increasing by 11% year-on-year [3][10]. Future Outlook - Management remains optimistic for Q4, noting positive trends in early October and strong sales during the Golden Week holiday [5][12]. - The company plans to open 3-4 new stores annually over the next two years while renovating around 15 existing stores [5][12]. - Operating margin is expected to remain around 40%, with capital expenditures increasing to support growth initiatives [5][12]. - The brand's strong customer loyalty and disciplined channel management are expected to support medium- to long-term growth [5][12].

Core Viewpoint - CICC reports that Prada's Q3 total sales reached €1.33 billion, exceeding market expectations, but lowers profit forecasts due to adverse foreign exchange factors and increased financial costs from the anticipated acquisition of Versace [1] Financial Performance - Prada's Q3 total sales: €1.33 billion, surpassing market expectations [1] - CICC reduces Prada's full-year profit forecast by 7.5% to €880 million [1] - Adjustments made to full-year revenue and EBIT forecasts: €5.731 billion and €1.359 billion respectively [1] Future Outlook - CICC lowers next year's revenue forecast by 9.6% to €6.155 billion due to intensified market competition [1] - EBIT and profit forecasts for the same period are reduced by 13.2% and 14.1% respectively [1] - Despite the adjustments, CICC maintains a "outperform" rating for Prada with a target price of HKD 75 [1]