Core Viewpoint - Kering's 2025 First Half Results Conference Call highlights the company's focus on craftsmanship and innovative offerings, driving desirability across its luxury brands [2][3]. Group 1: Company Performance - Kering's houses showcased exceptional craftsmanship and innovative products in the first half of 2025, enhancing brand desirability [4]. - Bottega Veneta celebrated the 50th anniversary of its signature Intrecciato weave, emphasizing craftsmanship through the "Craft is Our Language" campaign [4]. - Gucci launched the GT Obsession campaign, focusing on its iconic monogram design and introducing successful products like the Giglio bag [4]. Group 2: Product Highlights - Boucheron's latest high jewelry collection, "Impermanence," pays homage to nature, reflecting the brand's commitment to artistry and luxury [5].

Brand Performance - Gucci sales experienced a significant decline as consumers shifted away from the brand [1] - Kering's largest brand, Gucci, is undergoing its second design revamp in three years [1]

Company Valuation - Louis Vuitton's valuation, if based on Hermès' profit multiple, would exceed the entire LVMH group's value [1] - The situation has prompted suggestions for LVMH to consider a breakup [1]

Chairman and CEO François-Henri Pinault acknowledged the results were disappointing, but noted ongoing efforts to course correct the struggling luxury giant. "Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering's development," Pinault said in a statement accompanying the results. A Gucci logo is displayed at their store on May 30, 2025 in Washington, DC. Gucci-owner ...

Core Insights - Kering has made its First-Half Report for the period ending June 30, 2025, publicly available on its website [2] - Kering is a global luxury group that includes renowned brands such as Gucci, Saint Laurent, and Bottega Veneta, emphasizing creativity, sustainability, and cultural heritage [3] Company Overview - Kering is a family-led luxury group with a focus on couture, ready-to-wear, leather goods, jewelry, eyewear, and beauty [3] - In 2024, Kering employed 47,000 people and generated revenue of €17.2 billion [3]

Core Insights - Kering reported a significant decline in revenue for the first half of 2025, with total revenue of €7,587 million, down 16% as reported and 15% on a comparable basis [4][39] - The company is undergoing a leadership transition, appointing Luca de Meo as CEO while François-Henri Pinault remains Chairman [1][38] - Kering is focusing on enhancing the desirability of its brands through new creative leadership and operational efficiency [1][25] Financial Performance - Recurring operating income for the first half of 2025 was €969 million, a decrease of 39% compared to the same period in 2024 [5][39] - Net income attributable to the Group was €474 million, down from €878 million in the first half of 2024 [21][40] - Free cash flow from operations reached €2.4 billion, bolstered by €1.3 billion from real estate transactions [22] Segment Performance - Gucci's revenue fell to €3,027 million, down 26% as reported and 25% on a comparable basis, with a recurring operating income of €486 million [6][8] - Yves Saint Laurent generated €1,288 million in revenue, down 11% as reported and 10% on a comparable basis, with a recurring operating income of €262 million [9][10] - Bottega Veneta's revenue increased slightly to €846 million, up 1% as reported and 2% on a comparable basis, with a recurring operating income of €127 million [11][12] - Revenue from Other Houses was €1,459 million, down 15% as reported and 14% on a comparable basis, resulting in a recurring operating loss of €29 million [13][15] Market Trends - Sales from the directly operated retail network decreased by 16% on a comparable basis, with notable declines in Japan (-29%) and Western Europe (-17%) [4][4] - The second quarter of 2025 saw a revenue decline of 18% as reported, with a 15% decrease on a comparable basis [4][48] - The company is experiencing mixed performance across regions, with North America showing a decline of 10% and Asia-Pacific down 19% [4][4] Strategic Initiatives - Kering is committed to enhancing its financial structure and operational efficiency amid challenging market conditions [1][25] - The company is investing in the development of its Houses to strengthen brand desirability and exclusivity [23][24] - Kering Eyewear is pursuing strategic acquisitions to consolidate its position in the luxury eyewear market [36][37]

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Financial Performance - LVMH's fashion and leather goods segment experienced a 4% decrease (or 5% organically) in the first quarter [1] - The segment further declined by 12% in the second quarter [1] - Resulting in an 8% drop for the first half of the year, amounting to $224 billion [1]

Core Viewpoint - Investors are disappointed with the new trade deal between the E.U. and the U.S., which has negatively impacted LVMH's stock performance and reflects broader concerns in the luxury sector [1][2]. Group 1: Trade Deal Impact - The E.U. and the U.S. agreed to a 15% tariff on European goods, which has been criticized by France as a "submission" [3]. - The tariff agreement avoids a trade war but increases costs for luxury goods, which are already facing challenges [3]. - The trade war is expected to affect LVMH's fashion and leather goods segment, as well as wines and spirits, with trade-related pressures in China further hurting demand [5]. Group 2: Financial Performance - LVMH reported a 4% decline in revenue for the first half of the year, with operating profit falling 15% to €9 billion, primarily due to weakness in Asia [4]. - Organic revenue in fashion and leather goods, which constitute nearly half of LVMH's sales, declined by 7% [4][5]. Group 3: Future Outlook - Investors are looking for a potential trade deal with China, which could benefit LVMH, as China accounts for about a quarter of the global luxury market [6]. - There is disappointment that luxury goods were not excluded from the U.S. trade deal, but a strong economy and stock market may mitigate the impact of import taxes [6]. - LVMH possesses a strong portfolio of brands that should provide long-term stability, although short-term volatility is expected [7].

LVMH's fashion and leather goods segment fell an alarming 4% (or 5% organically) in the first quarter and 12% in the second to end the first half off 8% to $22.4 billion on a reported basis. (Photo: VCG via Getty Images)https://t.co/5JN2wTGcJj https://t.co/CreTiYmxUR ...