Financial Data and Key Metrics Changes - The Prada Group recorded net revenues of EUR 4.1 billion in the first nine months of 2025, representing a 9% increase compared to the same period last year at constant FX [9] - Retail sales increased by 8% in Q3 compared to the prior year, while wholesale sales rose by 4% in the first nine months and 19% in Q3 [9][10] - Royalties grew by 11% over the periods, supported by eyewear and beauty segments [10] Business Line Data and Key Metrics Changes - Prada's performance was resilient, with a -2% change in the first nine months, while Miu Miu reported a significant growth of 41% overall and 29% in Q3 [10] - Church's also returned to double-digit growth in the quarter [11] Market Data and Key Metrics Changes - Asia Pacific saw a 10% growth in the first nine months, with Q3 showing similar trends [11] - The Americas experienced a 15% increase in retail sales over the nine months, with Q3 at +20% [11] - Europe grew by 6% in the nine months, with Q3 trends remaining positive [11] Company Strategy and Development Direction - The company is committed to creative leadership and plans to continue investing in creativity and desirability [13] - There is a focus on maintaining a selective approach to store openings, with plans to close underperforming locations while expanding in key areas [29] - The company aims to balance its product offerings across different price levels and segments [44] Management's Comments on Operating Environment and Future Outlook - Management noted a plateau in growth in China, with expectations of gradual improvement [20][70] - The company is optimistic about the upcoming holiday period and expects to see continued improvement in Q4 [13][14] - Management emphasized the importance of the last six weeks of the year for overall performance [21] Other Important Information - The company is awaiting authorizations for the Versace acquisition, which is not yet closed [18] - Management highlighted the importance of maintaining a strong brand identity while exploring new product segments [44] Q&A Session Summary Question: Initial priorities for Versace integration - The transaction is not closed yet, and authorizations are still pending [18] Question: Current trading and improvement in Q3 - The company observed a plateau in China, with better-than-expected holiday performance [20] Question: Wholesale trends in Q3 - No exceptional timing of shipments was noted [22] Question: Cluster trends for key Prada brands - All clusters showed positive growth, with local transactions driving improvements [28] Question: Store expansion plans for Prada and Miu Miu - Miu Miu has seen store growth, while Prada is taking a more cautious approach [29] Question: Margin expectations for the upcoming year - The company is on track to deliver on margin expectations, with Q4 being crucial [37] Question: FX headwinds for H2 - Hedging strategies are expected to mitigate FX issues for 2025, but 2026 may face challenges [42] Question: Aspirational customers returning - There are weak signals of improvement, but the market remains on a plateau [52] Question: Growth by category in Q3 - Leather goods showed significant growth for both Prada and Miu Miu [109]

Financial Data and Key Metrics Changes - The Prada Group recorded net revenues of €4.1 billion in the first nine months of 2025, representing a 9% increase compared to the same period last year at constant foreign exchange rates [7] - Retail sales increased by 8% in Q3 compared to the prior year, while wholesale sales rose by 4% in the first nine months and 19% in Q3 [8][9] - Royalties grew by 11% over the periods, supported by eyewear and beauty segments [9] Business Line Data and Key Metrics Changes - Prada's performance was resilient, with a -2% change in the first nine months, while Miu Miu reported a significant growth of 41% for the same period and 29% in Q3 [9][10] - Church's also returned to double-digit growth in the quarter [10] Market Data and Key Metrics Changes - Asia Pacific saw a 10% growth in the first nine months, with Q3 showing similar trends [10] - Europe experienced a 6% increase in retail sales over the nine months, while the Americas reported a 15% growth, accelerating to 20% in Q3 [10] - Japan's growth was modest at 3% over the nine months, with Q3 down 1% but showing improvement [10] Company Strategy and Development Direction - The company is committed to maintaining its creative leadership and investing in desirability, with a focus on retail excellence and product innovation [12] - There is a cautious approach to store expansion for Prada, with plans to open 6-8 new stores while closing underperforming locations [23] - The company aims to balance its product offerings across different price points and categories, with a focus on high-value segments [34] Management's Comments on Operating Environment and Future Outlook - Management noted a plateau in growth in China, with expectations of gradual improvement rather than a return to previous high growth rates [17][47] - The company is optimistic about the upcoming holiday season and expects continued improvement in sales [12] - Management emphasized the importance of the last six weeks of the year for overall performance [12] Other Important Information - The company is experiencing a normalization in traffic levels, which is impacting sales performance [5] - The impact of foreign exchange rates is expected to be significant in Q4, with a negative effect of approximately 260 basis points in the first nine months [9] Q&A Session Summary Question: Initial priorities for Versace integration - The transaction is not yet closed, and the company is awaiting necessary authorizations [16] Question: Current trading and improvement in Q3 - Management observed a plateau in China, with some positive signs during holidays, but overall conditions remain stable [17] Question: Wholesale trends in Q3 - There were no exceptional factors affecting wholesale trends; the growth was consistent [19] Question: Cluster trends for key Prada brands - All clusters showed positive growth, with local transactions driving improvements [21] Question: Store expansion plans for Prada and Miu Miu - Miu Miu has seen successful store openings, while Prada is taking a more cautious approach to expansion [23] Question: Margin expectations for the upcoming year - Management did not provide specific guidance on margins but indicated that they are on track to meet previous targets [27] Question: FX headwinds for H2 - Hedging strategies are expected to mitigate FX impacts for 2025, but 2026 may face challenges [31] Question: Pricing policy for next year - The company plans to maintain its pricing strategy with regular adjustments [68] Question: Growth by category in Q3 - Miu Miu's ready-to-wear category and Prada's leather goods showed the most significant growth [70]

Core Viewpoint - The unexpected decision of Giorgio Armani's will mandates the sale of 15% of the company's shares within 18 months, prioritizing potential buyers such as LVMH, L'Oréal, and EssilorLuxottica, or an IPO if the sale does not occur [3][4][12]. Group 1: Will Provisions - The will specifies that the heirs must sell 15% of the company shares to other luxury companies or conduct an IPO if no sale occurs [3][4]. - The will also requires the sale of an additional 30% to 54.9% of shares within three to five years, potentially granting the buyer a majority stake [3][4]. - The family foundation will retain 30% of the shares, ensuring a degree of independence and continuity in the company's management [8][10]. Group 2: Company Valuation and Financial Performance - Analysts estimate the valuation of the Armani Group to be between €5 billion and €12 billion [3]. - The company's revenue for the fiscal year 2024 decreased by 5% year-on-year, amounting to €2.3 billion [3]. Group 3: Potential Buyers' Interest - LVMH, L'Oréal, and EssilorLuxottica have expressed interest in the potential acquisition, with LVMH's CEO acknowledging the honor of being considered a partner [12][13]. - Analysts suggest that LVMH is the most likely candidate due to its size and strategic fit, although concerns about its recent performance may temper aggressive acquisition strategies [14][16]. - L'Oréal may consider acquiring a stake to secure its beauty licensing business, while EssilorLuxottica's interest is noted despite its lack of core business alignment with Armani [16][17]. Group 4: Strategic Implications - The will's provisions reflect Armani's commitment to maintaining strategic continuity and financial stability for long-term development [11]. - The challenges of inheriting a luxury brand include cultural transmission, creative continuity, and brand image maintenance, which are particularly pronounced in family-owned luxury brands [11].

Core Viewpoint - The passing of designer Giorgio Armani has led to significant attention on his will, which outlines a plan for the gradual sale of his eponymous brand or a potential IPO, indicating a major shift for the company known for its independence and Italian style [1][2]. Summary by Sections Inheritance and Sale Plan - Giorgio Armani's will specifies a two-phase plan for the sale of the brand: an initial 15% stake must be sold within 18 months of his death, followed by an additional 30% to 54.9% within 3 to 5 years to the same buyer [1]. - If the sale plan is not executed, the heirs are instructed to initiate an IPO to take the brand public [1]. Control and Voting Rights - The Giorgio Armani Foundation and Armani's assistant hold a combined 70% voting rights in the Armani Group, with the foundation retaining 30.1% of shares if the company goes public [1]. Potential Buyers - The will includes a list of preferred buyers, including LVMH, L'Oréal, and EssilorLuxottica, contrasting with Armani's previous stance against dilution of control or going public [2]. - Heirs are encouraged to consider other fashion and luxury companies with existing business ties to Armani for potential acquisition [2]. Financial Performance - The brand is facing challenges, with a projected 6% decline in revenue for 2024, down to €2.3 billion, and a significant 69% drop in operating profit to €67 million [2]. - The execution of the will's directives will not only impact the brand's future but may also trigger a reshuffling in the luxury goods industry [2].

Core Insights - The will of the late designer Giorgio Armani indicates a significant shift for the brand, mandating the gradual sale of the company or an IPO if necessary [1][2] - The will outlines a two-phase plan for the sale of shares, starting with a 15% stake within 18 months and an additional 30% to 54.9% over the next 3 to 5 years [1] - Potential buyers listed in the will include LVMH, L'Oréal, and EssilorLuxottica, marking a departure from Armani's previous stance against dilution of control [2] Company Overview - Giorgio Armani passed away at the age of 91, leaving no children, with his estate managed by family members [1] - The brand is known for its independence and Italian style, but is facing challenges with a projected 6% revenue decline to €2.3 billion and a 69% drop in operating profit to €67 million for 2024 [2] Industry Implications - The execution of Armani's will by the heirs could lead to significant changes in the luxury fashion industry, potentially triggering a new wave of consolidation [2] - The will encourages heirs to consider other fashion and luxury companies for potential sales, broadening the scope of possible transactions [2]

Financial Data and Key Metrics Changes - The company's revenue in the first half was €133 million, down 22% year on year, reflecting softer market conditions and planned creative transitions [10] - Gross profit margin declined by 400 basis points to 54%, primarily due to sell-through of prior season inventory [11] - Adjusted EBITDA margin decreased to negative €52 million, impacted by lower revenue and operational leverage [15] Business Line Data and Key Metrics Changes - Lanvin's revenue declined by 42%, primarily due to weak wholesale demand in EMEA, but DTC revenue increased by 46% in the second quarter [20] - Wolfer's revenue was down 23%, with a 14% growth in the wholesale channel, while D2C decreased by 35% [22] - Sergio Rossi's revenue fell 25%, but retail sales were up 17% in Q2, indicating a rebound [24] - St. John maintained nearly flat revenue with a 4% growth in its core North American market [26] Market Data and Key Metrics Changes - All key regions saw revenue declines, with EMEA and Greater China facing the most significant headwinds [14] - D2C and wholesale channels were down, particularly in EMEA and Greater China [14] Company Strategy and Development Direction - The company is focused on long-term strategies, including strengthening brand leadership and streamlining operations [7][8] - There is an emphasis on protecting free cash flow through disciplined working capital management and rigorous cost control [8] - Targeted marketing initiatives are being deployed to boost traffic and conversion [9] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenges posed by global macroeconomic and geopolitical uncertainty but expressed confidence in the foundational work completed in H1 [3][4] - Encouraging signs of recovery were noted in the second quarter across several brands, with a focus on executing plans for the second half [30] Other Important Information - The company streamlined 29 underperforming stores in the first half, aiming for a more focused and productive retail footprint [17] - Significant strides were made in reducing G&A expenses across various brands, with reductions of 27% for Wolfer, 25% for Sergio Rossi, and 35% for St. John [15][16] Q&A Session Summary - There were no questions during the Q&A session, and the conference call concluded without any inquiries [31]

Financial Data and Key Metrics Changes - The company's revenue in the first half was €133 million, down 22% year on year, reflecting softer market conditions and planned creative transitions [9][10] - Gross profit margin declined by 400 basis points to 54%, primarily due to sell-through of prior season inventory [10][14] - Adjusted EBITDA margin decreased to negative €52 million, reflecting negative operational leverage, although cost discipline helped mitigate a larger drop [15][10] Business Line Data and Key Metrics Changes - Lanvin's revenue declined by 42%, primarily due to weak wholesale demand in EMEA, but DTC revenue increased by 46% in the second quarter [20][21] - Wolfer's revenue was down 23%, but wholesale channel grew by 14%, while D2C decreased by 35% due to rightsizing of the retail network [22] - Sergio Rossi's revenue fell 25%, but retail sales were up 17% and e-commerce was up 10% in Q2 [24] - St. John maintained nearly flat revenue with a 4% growth in its core North American market [27] Market Data and Key Metrics Changes - All key regions saw revenue declines, with EMEA and Greater China facing the most significant headwinds [13] - D2C and wholesale channels were down, with major softness in wholesale for EMEA and cautious consumer sentiment in Greater China [13] Company Strategy and Development Direction - The company is focused on long-term growth, emphasizing cost discipline, operational efficiency, and strategic repositioning across geography and product assortment [4][12] - The strategy includes streamlining operations, optimizing retail footprint, and deploying targeted marketing initiatives to boost traffic and conversion [8][19] - The company plans to leverage new creative talent to drive growth in the second half [12][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough macroeconomic and geopolitical climate but expressed confidence in the foundational work completed in the first half [3][30] - There are encouraging signs of recovery in the second quarter across several brands, and management is optimistic about the plans for the second half [30][31] Other Important Information - The company rightsized 29 underperforming stores in the first half and is continuing a comprehensive review of its network [8][18] - Significant strides were made in reducing G&A expenses across various brands, with reductions of 27% for Wolfer, 25% for Sergio Rossi, and 35% for St. John [15][16] Q&A Session Summary - There were no questions during the Q&A session, and the conference call concluded without any inquiries [32]

Financial Data and Key Metrics Changes - The company's revenue in the first half was €133 million, down 22% year on year, reflecting softer market conditions and planned creative transitions [9] - Gross profit margin declined by 400 basis points to 54%, primarily due to sell-through of prior season inventory [10] - Adjusted EBITDA margin decreased significantly, resulting in a negative €52 million, attributed to negative operational leverage [15] Business Line Data and Key Metrics Changes - Lanvin's revenue declined by 42%, primarily due to weak wholesale demand in EMEA, but retail remained resilient with a 46% increase in DTC revenue in Q2 [20] - Wolfer's revenue was down 23%, but wholesale grew by 14%, indicating a positive trend despite a 35% decrease in D2C [22] - Sergio Rossi's revenue fell 25%, but retail sales rebounded by 17% in Q2, indicating potential recovery [24] - St. John maintained nearly flat revenue with a 4% growth in its core North American market [27] Market Data and Key Metrics Changes - All key regions saw revenue declines, with EMEA and Greater China facing the most significant challenges [13] - D2C and wholesale channels were down, with major softness in wholesale for EMEA and cautious consumer sentiment in Greater China [13] Company Strategy and Development Direction - The company is focused on long-term growth through brand leadership strengthening, operational efficiency, and targeted marketing initiatives [8] - A comprehensive review of the retail network is ongoing, with 29 underperforming stores rightsized [8][18] - The company aims to protect free cash flow through disciplined working capital management and rigorous cost control [8] Management's Comments on Operating Environment and Future Outlook - The management acknowledged persistent global macroeconomic and geopolitical uncertainty but expressed confidence in recovery signs observed in Q2 [3][30] - The company is optimistic about the second half, driven by new creative talent and strategic repositioning efforts [12][30] Other Important Information - The company completed a capital increase for Wolford to support its strategic transformation [5] - Significant strides were made in reducing G&A expenses across various brands, with reductions of 27% for Wolfer, 25% for Sergio Rossi, and 35% for St. John [15][16] Q&A Session Summary - There were no questions during the Q&A session, and the conference call concluded without further inquiries [32]

Group 1: Luxury Brands' Strategies for Qixi Festival - Major luxury brands are launching limited edition products for the Qixi Festival to capture market share, including jewelry, bags, cosmetics, and home goods [1] - Louis Vuitton has introduced the 2025 Qixi Gift Collection featuring the Dream series and Monogram Archive series, emphasizing customization options for consumers [1][3] - LETOII ATELIER has unveiled the 2026 Spring Couture Collection, showcasing intricate craftsmanship with over 1.49 million pearls and 8.9 million sequins [2][5] Group 2: Brand Campaigns and Themes - Prada's new collection reinterprets traditional love stories through modern Shanghai settings, featuring a campaign with brand ambassadors [7] - Balenciaga's annual Qixi campaign captures romantic moments in iconic Shanghai locations, emphasizing a "Frozen in time" visual concept [8] - Miu Miu's collection combines dreamlike and minimalist aesthetics, highlighting a blend of nostalgic and rebellious styles [10] Group 3: Unique Offerings and Cultural Elements - LOEWE's Qixi series includes limited edition bags and a mini-drama titled "The Magpie's Love," reflecting a "Chinese-style romance" [11] - Loro Piana's 2025 capsule collection is inspired by "reunion and love," featuring soft natural tones and floral prints [12] - TAG Heuer has launched couple watches with a focus on long-lasting romance, utilizing blue and pink color schemes [13] Group 4: Emotional and Artistic Expressions - Boucheron's new campaign draws inspiration from emotional connections, showcasing the Quatre Classique and Quatre Grosgrain series [15] - Thom Browne's 2025 Qixi limited series features playful designs that express love through everyday items, including a game for sharing "love notes" [15] - The success of luxury brands during the Qixi season hinges on their ability to resonate with consumers' emotional and personalized needs [16]

Group 1: High-End Brand Activities for Qixi Festival - Luxury brands are leveraging traditional Chinese culture and local elements to launch unique promotional activities for the Qixi Festival [2][4][12] - LV introduces personalized customization services, allowing consumers to choose colors, fonts, stripes, and embellishments for their bags, enhancing the romantic experience [4] - Prada's advertising campaign features a contemporary narrative that intertwines mythology with modern Shanghai, showcasing new collections through a journey across seven iconic bridges [8][10] Group 2: Specific Brand Initiatives - Balenciaga's Qixi campaign includes a series of portraits and short films shot at Shanghai landmarks, highlighting the contrast between urban life and romantic moments [10] - APM Monaco launches a new Morse code jewelry collection inspired by the ancient "Qixi" tradition, with interactive advertising across over 200 locations in major cities [12] - Loro Piana unveils a limited capsule collection themed around "reunion and love," featuring soft color palettes and a whimsical limited-edition plush toy, emphasizing craftsmanship and emotional expression [14]