Core Insights - The China International Import Expo (CIIE) has evolved from a simple product showcase to a strategic platform for foreign companies to deepen their localization efforts in China, reflecting the certainty and opportunities brought by China's high-level opening-up [1][2]. Group 1: Foreign Companies' Perspectives - Amorepacific's Vice President expressed that the CIIE serves as a strategic coordinate for understanding the Chinese market and enhancing local presence, highlighting the deepening integration of foreign enterprises with the Chinese market [1]. - Glenn Vavoso, Senior Vice President of Intuitive Surgical, noted that the CIIE has allowed their Da Vinci surgical robots to transition from exhibits to commercially available products in China, achieving significant localization [1]. - Anu Rathninde, President of Johnson Controls Asia Pacific, emphasized the CIIE as a unique bridge connecting the world, facilitating the introduction of advanced technologies into China, and achieving over 96% localization in engineering R&D [2]. Group 2: Market Trends and Consumer Engagement - Crocs has leveraged the CIIE to enhance its brand localization, integrating Chinese culture to appeal to younger consumers, thus establishing itself as a core player in the global market [2][3]. - The CIIE has been recognized as a platform that not only showcases products but also fosters deep connections between brands and local culture, as stated by Crocs' Global Brand President [3]. - The continuous improvement of China's business environment and its vast market potential provide a stable development anchor for global enterprises, reinforcing the narrative of mutual benefit and cooperation [3].

Core Points - JD.com is actively promoting its 11.11 shopping festival, offering significant discounts and exclusive products to attract consumers [1][10] - The event features a variety of promotions, including a 1000-300 discount coupon for apparel, limited-time flash sales, and exclusive celebrity merchandise [3][5] Promotions and Offers - Consumers can receive a 1000-300 discount coupon applicable to fashion items, which can be combined with other coupons for additional savings [3] - Exclusive items such as the limited edition Hermès Kelly doll handbag and Lancôme's 90th anniversary cream are available for auction starting at 1 yuan [5][8] - Major brands are offering discounts, including a 5% direct reduction on gold jewelry [2][3] Celebrity Engagement - The event includes special promotions featuring celebrities, with opportunities for fans to receive exclusive merchandise and even surprise phone calls from stars like Liu Yuning [3][5] - Limited edition items signed by celebrities are available, enhancing the appeal for fans and collectors [5][8] Product Variety - A wide range of high-quality fashion items is available at discounted prices, including winter apparel made from rare materials [8] - The event showcases unique fabric items, such as vintage denim and luxury outerwear, appealing to consumers looking for exclusive fashion [8]

Investment Rating - The report maintains a positive outlook on Prada Group, indicating a potential for steady profit growth and resilience in its brand portfolio [5][12]. Core Insights - Prada Group reported a revenue of €4.07 billion for the first nine months of FY25, reflecting a 9% year-on-year increase at constant exchange rates, marking the 19th consecutive quarter of positive growth [1][8]. - The acquisition of Versace for an enterprise value of €1.25 billion is expected to open new growth avenues for the group [1][4]. Revenue Performance - For the first nine months of FY25, Prada brand revenue declined by 2% year-on-year, with a 1% decline in 3Q25, showing significant improvement driven by the recovery in core leather goods and ready-to-wear categories [2][9]. - Miu Miu brand revenue surged by 41% year-on-year in 9M25 and 29% in 3Q25, maintaining strong growth despite a high comparison base from the previous year [2][9]. Regional Performance - Asia-Pacific revenue increased by 10% year-on-year, with notable recovery in mainland China, while the Americas saw a 15% increase, accelerating to 20% in 3Q25 [3][10]. - Europe experienced a 6% growth, supported by stable local demand, while the Middle East recorded a 21% increase [3][10]. Strategic Initiatives - The group is focused on optimizing its retail network, enhancing customer experience, and maintaining a strong product lineup, including high-end offerings [4][11]. - The acquisition of Versace is part of a broader multi-brand strategy aimed at expanding scale and profitability over the long term [4][11]. Future Outlook - Management expresses a cautious yet optimistic view, anticipating steady profit growth supported by a premium product mix and retail efficiency gains [5][12]. - The dual-brand strategy of Prada and Miu Miu, along with the integration potential of Versace, is expected to drive growth exceeding industry averages [5][12].

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]