Group 1: Company Performance - Hermès reported a 9% increase in sales for the second quarter, reaching €3.9 billion, with all regions showing growth [14] - Adidas achieved a 7.3% increase in net sales for the first half of the fiscal year, totaling €12.1 billion, with a gross margin of 51.9% [2] - Prada's net revenue for the first half of the fiscal year reached €2.74 billion, reflecting a 9.1% growth at constant exchange rates [2] - Canada Goose reported a strong start to the new fiscal year with a 22.4% increase in global revenue, amounting to CAD 107.8 million [9] - Kering's stock price rose 24% following the appointment of Luca de Meo as CEO, who received a €20 million signing bonus [3] - SMCP's sales increased by 2.7% to €601.1 million, with all regions outside Asia showing growth [11] Group 2: Operational Changes - PUMA appointed Andreas Hubert as COO, effective September 1, to streamline operations and integrate various functions [6] - Arena announced Mark Pinger as the new Chief Brand Officer, effective October 1, leveraging his sports background for brand growth [7] - Jil Sander's CEO Serge Brunschwig resigned after six months, indicating potential instability in leadership [13] Group 3: Market Trends and Insights - L'Oréal's second-quarter sales grew by 1.6%, with an operating profit margin of 21.1%, indicating a positive trend in digital transformation [8] - The luxury market shows a divergence in brand performance, with Prada's main brand experiencing a slight decline while Miu Miu surged by 49.2% [2][3] - The disappearance of shares held by Hermès' largest individual shareholder may impact brand image and market confidence [5]

Group 1 - Kering Group reported a 16% year-on-year decline in revenue for the first half of 2025, totaling €7.587 billion, with recurring operating profit down 38.7% to €969 million and net profit down 46% to €474 million [2] - The core brand Gucci experienced a significant revenue drop of 26% year-on-year in the first half of 2025, generating €3 billion, with a 25% decline in the second quarter to €1.46 billion [2] - Gucci's poor performance has persisted for six consecutive quarters, with comparable sales declines of 21%, 20%, 25%, 24%, 25%, and 25% from Q1 2024 to Q2 2025 [2] Group 2 - Other brands under Kering also faced challenges, with Saint Laurent (YSL) revenue down 11% to €1.3 billion in the first half of 2025, and a 10% decline in comparable sales for the second quarter [2] - Only Bottega Veneta and Kering Eyewear achieved growth, with Bottega Veneta's revenue increasing by 1% to €846 million and Kering Eyewear's revenue growing by 2% to €1.092 billion, while Kering Beauty saw a 9% increase [2] - Kering's Chairman and CEO Francois-Henri Pinault acknowledged the underperformance and stated that the company is optimizing distribution channels and cutting costs to strengthen its financial structure [3] Group 3 - In the first half of the year, Kering closed 24 stores globally, including 18 Gucci stores, with 7 located outside Japan in the Asia-Pacific region [3] - As of June 30, Kering had a total of 1,789 stores worldwide [3]

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]

Core Insights - Prada Group reported a net revenue of €2,740 million for the six months ending June 30, 2025, representing a 9% increase at constant exchange rates compared to the same period in 2024 [1] - Retail sales net revenue increased by 10% at constant exchange rates compared to 2024, with Miu Miu's retail sales net revenue rising by 49%, while Prada brand's retail sales net revenue decreased by 2% [1] - All regions experienced growth in retail sales net revenue at constant exchange rates: Middle East +26%, Americas +12%, Asia Pacific +10%, Europe +9%, and Japan +4% [1] Financial Performance - The adjusted EBIT for the first half of 2025 was €619 million, an 8% increase compared to 2024, with a profit margin of 22.6%, remaining stable year-on-year [1] - The net income for the first half of the year was €386 million [1] - The board proposed a final dividend of €0.164 per share for the fiscal year 2024 [1]

Core Viewpoint - A viral video claiming that the "LV flagship store" in Shanghai was flooded due to Typhoon "Zhu Jie Cao" has been confirmed as fake, with no significant water accumulation reported in the area [1][2]. Group 1 - The viral video depicting flooding around the "LV flagship store" was widely circulated on social media [1]. - Local authorities reported no significant water accumulation in the vicinity of the LV flagship store during the typhoon [1]. - The Shanghai police have confirmed that the video is a fabricated content and are investigating its creator and dissemination [2][3].

Core Viewpoint - Kering Group's financial performance in the first half of 2025 shows a significant decline, with a 46% drop in net profit to €474 million and a 16% decrease in sales to €7.6 billion, indicating ongoing struggles in the luxury goods market [2][3]. Financial Performance - Kering's net profit for the first half of 2025 is €474 million, down from €878 million in the same period of 2024 [2]. - Sales decreased by 16% to €7.6 billion in the first half of 2025 [2]. - The core brand Gucci experienced a 26% decline in sales, amounting to €3 billion, compared to over €4 billion a year earlier [3]. Brand Performance - Gucci's prolonged underperformance is a major concern, with its appeal diminishing across all regions [3]. - Other brands within Kering, such as Yves Saint Laurent and Balenciaga, also reported revenue declines of 11% and 15%, respectively [2]. - Bottega Veneta is an exception, showing a 1% revenue increase to €846 million, now accounting for 11% of the group's total revenue [2]. Market Conditions - The luxury goods market is experiencing a slowdown, attributed to weak consumer confidence and adverse currency fluctuations affecting tourism [3]. - The Asia-Pacific region (excluding Japan) and Japan have seen the most significant declines in sales [3]. - The strong euro has negatively impacted Kering's revenue growth by nearly 1% [3]. Strategic Changes - Kering has appointed Demna, formerly of Balenciaga, as the creative director for Gucci, hoping to revitalize the brand [3]. - Gucci's planned spring/summer fashion show has been postponed to March next year, with a new collection set to be unveiled in September [3]. Tariff Impact - A new agreement between the US and EU will impose a 15% tariff on European products exported to the US, where North America accounts for 24% of Kering's sales [4]. - Kering's CFO stated that the impact of tariffs is manageable and may lead to price adjustments in the fall [4].

Core Viewpoint - Kering Group reported a significant decline in sales and profits for Q2 and the first half of 2025, exceeding market expectations, indicating a more severe struggle than anticipated in the luxury goods sector amid ongoing weak global demand for high-end consumer products [2][4]. Financial Performance - Q2 revenue was €3.7 billion, down 18% year-on-year, worsening from a 14% decline in Q1, leading to a 16% drop in total revenue for the first half to €7.59 billion [4][7]. - Operating profit fell by 38.7% to €969 million, while net profit plummeted 46% to €474 million [4]. - Gucci, Kering's core brand, experienced a dramatic revenue drop of 25% in Q2, with first-half revenue down 26% to €3.03 billion, marking a return to 2017 revenue levels [4][6]. Brand Performance - Other brands under Kering, such as Bottega Veneta, Balenciaga, and Saint Laurent, also faced declines, with Bottega Veneta being the only brand to show growth, up 1% in Q2 to €441 million [6][9]. - Saint Laurent's Q2 revenue decreased by 13% to €609 million, while the "Other Houses" segment saw a 16% decline in Q2 revenue to €726 million [6][7]. Market Trends - Kering's eyewear and beauty segments showed resilience, with eyewear revenue up 1% in Q2 to €534 million, driven by the acquisition of Creed [9][10]. - The luxury market is shifting towards more affordable, entry-level luxury products, with brands like LV entering the beauty sector to capitalize on this trend [10]. Geographic Performance - Retail sales across major markets recorded double-digit declines, with Japan seeing a 29% drop in Q2 revenue and a 20% decline in the first half [13]. - The Asia-Pacific market, including China, experienced a 19% decline in Q2 revenue, while Western Europe and North America also reported significant drops [13]. Financial Health - Kering's net debt rose to €10.5 billion, nearly half of the company's market value, prompting asset sales to reduce debt from €10.5 billion to €9.5 billion [13]. - The company is expected to face additional costs due to new tariffs on EU goods, with potential price adjustments planned for the fall [13]. Leadership Changes - Kering has undergone significant management changes, with a new CEO expected to bring clearer strategies for brand revitalization and growth [14][16]. - Key promotions within the company include the elevation of executives from Gucci and Balenciaga to lead other brands, indicating a strategic reshuffle [14].

Core Insights - Kering Group reported a 16% year-on-year decline in revenue for the first half of 2025, totaling €7.587 billion, with a net income of €474 million attributed to the group [1] - The second quarter revenue also saw a 15% decrease, amounting to €3.7 billion [1] Brand Performance - Gucci experienced a significant revenue drop of 26% in the first half of 2025, generating €3 billion, with a 25% decline in the second quarter to €1.46 billion [1] - Yves Saint Laurent's revenue fell by 11% in the first half of 2025 to €1.3 billion, with a 10% decrease in comparable sales for the second quarter [1] - Bottega Veneta reported a slight revenue increase of 1% in the first half of 2025, reaching €846 million, with the same growth rate in the second quarter [1] Other Business Segments - The corporate business segment, including Kering Beauty and Kering Eyewear, saw a 2% year-on-year revenue growth in the first half of 2025, totaling €1.1 billion [1]

Core Viewpoint - LVMH Group is in discussions to sell the Marc Jacobs brand, indicating a strategic shift in its portfolio management [1] Group 1: Company Strategy - The potential sale of Marc Jacobs reflects LVMH's ongoing strategy to optimize its brand portfolio and focus on more profitable segments [1] - This move may also be influenced by the performance of Marc Jacobs, which has faced challenges in recent years [1] Group 2: Market Implications - The sale could impact the luxury fashion market, as LVMH is a significant player, and changes in its brand ownership may alter competitive dynamics [1] - Investors may view this as a signal of LVMH's commitment to maintaining high standards in its brand offerings [1]

Group 1 - The core viewpoint of the article is the emergence of a new trend called "brand value separation," where consumers are increasingly distinguishing between the tangible and intangible values of products, leading to a shift in purchasing behavior [1][3] - The article discusses how traditional brand value, which combines both tangible (functionality, material, design) and intangible (brand spirit, emotional connection, social status) aspects, is being challenged by the rise of "value-for-money" alternatives [3][4] - The phenomenon of "Dupe culture" is highlighted, where consumers are opting for cheaper alternatives that replicate the tangible aspects of high-end brands while disregarding the associated emotional and social values [3][4][10] Group 2 - Three driving factors behind brand value separation are identified: the demystification and openness of supply chains, the breakdown of information barriers through social media, and the maturation of consumer mindsets [4][7][10] - The article notes that the global supply chain has become more accessible, allowing new brands to offer similar quality products at lower prices by eliminating brand premiums [4][5] - Social media platforms like TikTok have played a significant role in revealing the actual costs of luxury items, leading consumers to question the value of high-priced products and seek out more affordable alternatives [7][8] Group 3 - The changing economic environment and the evolving identity of younger consumers are contributing to a more pragmatic approach to spending, with a focus on value rather than brand prestige [10][12] - The article emphasizes that consumers are increasingly aware of the hidden costs associated with brand premiums, leading to a decline in the willingness to pay for brand identity [12][13] - The article suggests that brands must adapt to this new landscape by creating deeper value propositions that cannot be easily replicated by cheaper alternatives [14][24] Group 4 - Brands are encouraged to rebuild their value barriers by focusing on extreme product quality, technological advantages, and creating ecosystems that enhance user engagement [15][21] - The article highlights that successful brands will need to offer unique experiences and emotional connections that go beyond mere product functionality [24][27] - The future of branding is framed as a shift from defining consumer identity to providing tailored services that meet specific consumer needs, emphasizing the importance of understanding human desires [27][28]