Core Insights - LVMH is a prominent French luxury conglomerate with a diverse portfolio that includes watches, fashion, and champagne, featuring globally recognized brands such as Louis Vuitton, Dior, and Moët [1] Group 1 - LVMH's brands have a rich history and are well-known worldwide, contributing to the company's strong market presence [1]

Market Overview - America is considered an emerging market for luxury watches [1] Industry Impact - Tariffs could negatively impact Swiss watch companies, affecting a rare positive area [1]

Mergers and Acquisitions - UK companies, including Burberry, are identified as potential takeover targets among European firms [1]

Luxury brands have been around for decades, and so have the cheap plasticky copycats sold for a fraction of the price. These so-called super fakes have brands and businesses scrambling to ramp up authentication standards. Luxury reseller The Real Real pulled 7,000 counterfeit handbags off the market last year alone.Subtle differences made much more evident with the help of The Real Real's newest edition, our very state-of-the-art X-ray machine. As technology takes on a larger role in backing up even the tra ...

Core Insights - The luxury industry is experiencing a significant downturn, with LVMH's profits dropping 15% in the first half of 2025 and organic growth down 3% [3] - Kering's revenue has decreased by 18% in Q2, with Gucci's sales falling by 25% and overall sales in Asia and Japan down by 29% in the first half of the year [3] - The current challenges are attributed to a need for a reset in the luxury sector, moving away from hyper-scaling growth strategies that have led to overexposure and loss of brand essence [4][5] Company Performance - LVMH's shares have declined by 15% since the start of 2025, indicating investor concerns about the company's performance [2] - Hermès, in contrast, reported a 9% revenue increase to 3.9 billion in Q2, demonstrating strong brand equity and customer loyalty [5][6] - Gucci's decline in sales and consumer loyalty highlights the risks of overexposure and trend-chasing strategies [7] Market Trends - Luxury consumers are becoming more selective, valuing emotional connections and long-term worth over short-lived trends [8][10] - The industry is witnessing a shift towards authenticity, craftsmanship, and storytelling as key drivers of desirability [9] - Brands are encouraged to return to their roots, focusing on intention and intimacy rather than mass visibility [9]

Group 1 - The half-yearly financial report for Christian Dior as of June 30, 2025, has been filed with the Autorité des Marchés Financiers on July 30, 2025 [2] - The report is made available to the public in accordance with applicable regulations and can be found on the company's website under the "Regulated information" section [2]

Financial Data and Key Metrics Changes - The group 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 [19] - Retail sales for the period reached €2,450 million, up 10% versus H1 2024 at constant FX [19] - EBIT adjusted reached €619 million in H1 2025, with a margin of 22.6%, showing steady profitability versus H1 2024 [20] - Net income reached €386 million, in line with the same period last year [25] - Cash flow from operations reached €696 million, and the net cash position stood at €352 million [20][28] Business Line Data and Key Metrics Changes - Retail sales for the Prada brand were down 2% in the semester, while Miu Miu saw a 49% retail sales growth in the semester [21][22] - Wholesale was down 1% versus H1 2024, impacted by some degree of phasing [20] - Churches brand reported a 4% increase in retail sales in the semester [22] Market Data and Key Metrics Changes - Retail sales in Asia Pacific were up 10% in the semester, while Europe was up 9%, with Q2 impacted by lower tourist spending [23] - The Middle East delivered the best performance of the semester, up 26% in H1 [24] - Japanese retail sales decelerated against exceptionally high tourist flows in 2024, particularly in Q2 [24] Company Strategy and Development Direction - The company is focused on maintaining strong relationships with consumers and investing in new products and collections [6][10] - There is an emphasis on elevating the customer experience and enhancing the in-store experience [20][26] - The company aims to navigate the resetting luxury market by offering unique and personalized products [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a cyclical downturn and geopolitical factors affecting tourism [7][8] - There is a cautious optimism regarding the second half of the year, with expectations of improved performance despite ongoing uncertainties [30][42] - The management is focused on long-term growth and maintaining brand desirability through strategic investments [20][25] Other Important Information - Significant investments were made in sustainability initiatives, including lower impact raw materials and diversity and inclusion programs [16][17] - The company is preparing for the integration of Versace, with expectations for completion between September and November [56] Q&A Session Summary Question: Insights on American and Chinese clusters in Q2 - Chinese demand was subdued but stable, while North American demand improved slightly [38] Question: Outlook for Q3 and easier comps - Q3 is expected to be softer, but there are easier comps compared to Q2 [41][42] Question: Prada brand's new collection and pricing strategy - The focus is on maintaining credibility at higher price points while offering a balanced collection [50][51] Question: Operating leverage in H1 - The company maintained stable profitability despite increased investments in customer-facing activities [53][54] 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 [56] Question: Market share gains for the Prada brand - The brand is focused on maintaining its creative identity and enhancing retail KPIs to gain market share [64] Question: Future growth for Miu Miu - The focus remains on leather goods, with plans for store expansions and maintaining brand positioning [68][70] Question: Gross margin sustainability - The gross margin is expected to remain around 80%, supported by a positive sales mix [72] Question: Profitability comparison between Miu Miu and Prada - Miu Miu is on a positive trajectory but still requires investment to catch up with Prada [110] Question: Drivers of organic growth for the group - Growth will depend on geographical opportunities and product category expansions, particularly in leather goods [114]

Sales Performance - Prada's sales rose less than expected in the first half of the year [1] Market Trends - The luxury market is experiencing a broader slump [1]

The enigma surrounding Hermès shares worth about €14 billion inherited by a member of the company’s controlling family is finally seeing some glimmers of light https://t.co/NKdcgjloWP ...

Hermès sales rose as wealthy shoppers continued to snap up its pricey handbags, showing the company’s resilience amid a sharp downturn in demand for high-end goods that has hit its luxury peers https://t.co/ysWIXL3nug ...