Financial Data and Key Metrics Changes - The Prada Group reported net revenues of EUR 5.7 billion, an increase of 9% compared to fiscal year 2024 at constant FX, and an organic growth of 8% year-over-year, marking the fifth consecutive year of growth at the group level [21][22] - Retail sales totaled EUR 5.1 billion, up 8% organically versus fiscal year 2024, and up 28% versus fiscal year 2023 at constant FX [22] - EBIT adjusted reached EUR 1.32 billion with a margin of 23.2%, including the dilutive impact of Versace [22][28] - Net income increased by 2% to EUR 852 million compared to fiscal year 2024 [28] Business Line Data and Key Metrics Changes - Prada brand closed the year at -1%, with Q4 showing sequential improvement, particularly in Mainland China, Korea, Japan, and the Americas [25] - Miu Miu retail sales grew by 35% to EUR 1.6 billion, with Q4 sales up by 20% against a high base of +84% in 2024 [26] - Church's brand maintained a positive trajectory driven by like-for-like sales [26] Market Data and Key Metrics Changes - Asia Pacific region showed growth of 11%, with Q4 performance in line with Q3 despite higher comps [27] - Europe experienced a 5% growth over the year, with softer trends in the second half due to strong multi-year comps and lower tourism [27] - The Americas saw consistent double-digit growth, with sales up 18% [27] - Japan delivered growth of 3%, with improvements in Q4 driven by local demand and increased traveler flows [27] Company Strategy and Development Direction - The company is focused on enhancing digital capabilities and hospitality standards, investing in strategic digital plans and AI tools [6][8] - The acquisition of Versace is seen as a new chapter, with plans for channel repositioning towards quality and full-price sales [32][34] - The company aims to maintain a strong relationship with clients and improve retail execution while navigating the challenges of the current market environment [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging year for the industry, with a significant loss of consumer engagement over the past few years [5] - The company expects solid performance for Prada in 2026, with a cautious outlook for Miu Miu due to high comps from the previous year [10][39] - Management emphasized the importance of agility and efficiency in the current operating environment [41] Other Important Information - The company completed the acquisition of Versace on December 2, 2025, consolidating one month of contribution from the brand into its financials [21] - The gross margin reached 80.3%, up by 50 basis points, driven by operating leverage and channel mix [28] Q&A Session Summary Question: What is the expected growth for Prada in 2026? - Management refrained from providing specific guidance but indicated that if conditions are favorable, double-digit growth for Miu Miu is possible [46][48] Question: What are the expectations for the wholesale channel? - Management expects to maintain similar growth percentages as in previous years, with cautious inventory management [80] Question: Can you elaborate on the store openings and closures expected this year? - The retail network will see a balance of openings and closures, with Miu Miu expected to add 5-10 stores while Prada may close more than it opens [81] Question: What is the anticipated revenue contraction for Versace? - Management indicated a mid-single-digit contraction at constant FX for Versace, with efforts to limit operating losses to a two-digit figure [60][61] Question: When will Pieter Mulier present his first collection for Versace? - The first show of Pieter Mulier is expected at the beginning of next year, with changes to the collection anticipated thereafter [102]

Leadership Changes - Bartolomeo Rongone, CEO of Bottega Veneta, will exit the brand effective March 31 and will join Moncler as CEO on April 1 [1] - Remo Ruffini will remain as executive chairman of Moncler, overseeing creative direction, while Roberto Eggs will step down as chief business and global market officer on March 1 but will stay on the board [2] Strategic Reorganization - Moncler is undergoing a corporate reorganization to strengthen its structure in response to a complex and evolving market environment, as stated by Ruffini [3] - The changes are seen as a natural evolution and part of a potential generational succession plan for Moncler [3] Contributions and Background - Luca de Meo, CEO of Kering, acknowledged Rongone's significant contributions to Bottega Veneta over the past six years, highlighting important milestones achieved during his tenure [4] - Before Bottega Veneta, Rongone served as COO of Saint Laurent and has extensive experience in the luxury sector, having started his career as a market analyst at Fendi in 2001 [5]

Core Insights - Bernard Arnault is recognized as a visionary leader who has significantly shaped the luxury industry through creativity, innovation, and a commitment to quality [2][42][68]. - LVMH, under Arnault's leadership, has grown to encompass 70 brands across six sectors, including high-end perfumes, wines, and leather goods, demonstrating a successful business model that combines various luxury segments [5][68]. - The company has maintained a focus on craftsmanship and cultural heritage, which are seen as essential to its long-term success and relevance in a rapidly changing market [68][71]. Company Overview - LVMH is the largest luxury brand globally, with a diverse portfolio that includes iconic names such as Louis Vuitton, Dior, and Sephora [1][5]. - The company has a history of strategic acquisitions, including the notable purchase of Tiffany, which is viewed as a significant milestone in LVMH's expansion in the American market [70][81]. - Arnault's approach to management emphasizes a family-like culture within the company, fostering loyalty and mentorship among employees [90][91]. Industry Trends - The luxury market is evolving, with increasing consumer demand for high-quality products that are rooted in history and craftsmanship, rather than mere luxury status [80][81]. - There is a growing interest in experiences over products, with LVMH investing in high-end hospitality to meet this demand [87]. - The integration of technology, including AI, is seen as a way to enhance efficiency while preserving the artisanal quality of luxury goods [85][86]. Leadership Philosophy - Arnault's leadership style is characterized by a blend of creativity and analytical skills, allowing him to navigate both the artistic and business aspects of the luxury industry [39][46]. - He emphasizes the importance of long-term thinking and adaptability in the face of economic and geopolitical challenges, ensuring that LVMH remains resilient [68][79]. - Arnault's commitment to family values extends to his management approach, where he instills a sense of responsibility and meritocracy among his children and employees [90][92].

Company Overview - LVMH is the largest luxury brand in the world, with a business model centered on creativity, innovation, and quality [1][3] - The company comprises 70 different brands across six sectors, including high-end perfumes, wines, and leather goods [3] Leadership and Vision - Bernard Arnault is recognized as a visionary leader who has successfully transformed the luxury industry and built a strong portfolio of brands [2][44] - Arnault's approach combines creativity with strategic business acumen, allowing LVMH to thrive even in challenging economic conditions [40][41] Market Position and Future Outlook - LVMH is expected to maintain its leadership position in the luxury sector for the next 30 years, driven by a commitment to quality and craftsmanship [1][86] - The company has successfully navigated various crises over the past 40 years, continuously growing and adapting to market demands [86][87] Innovation and Technology - LVMH embraces technological advancements, including AI, to enhance efficiency while preserving the craftsmanship that defines its products [88][90] - The company balances tradition with innovation, ensuring that its luxury offerings remain relevant in a rapidly changing market [77][78] Family and Corporate Culture - The corporate culture at LVMH is described as familial, emphasizing loyalty, mentorship, and shared values among employees [48][94] - Bernard Arnault instills values of discipline, boldness, and quality in his family and the broader LVMH team, fostering a strong sense of community [45][48]

Core Insights - Understanding the performance of leading European stocks reveals differences compared to American firms, with Europe excelling in fashion and having notable successes in tech and defense [4][8] - Long-term value creation is essential for sustained performance, with firms that consistently excel in customer value, autonomous networks, and adaptive mindsets outperforming others [4][8] Consistently Poor Performers - Diageo PLC: Overall score 8.2/15.0, TSR/S&P500 at 7%/243% [5] - Bayer: Overall score 8.2/15.0, TSR/S&P500 at 20%/243% [5] - Sanofi S.A.: Overall score 8.5/15.0, TSR/S&P500 at 50%/243% [5] - National Grid: Overall score 8.8/15.0, TSR/S&P500 at 67%/243% [5] - Adidas: Overall score 8.5/15.0, TSR/S&P500 at 173%/243% [5] - Anheuser-Busch InBev: Overall score 8.7/15.0, TSR/S&P500 at 50%/243% [5] Mixed Performers - Nestlé S.A.: Overall score 8.9/15.0, TSR/S&P500 at 55%/243% [6] - British American Tobacco: Overall score 8.9/15.0, TSR/S&P500 at 74%/243% [6] - Unilever PLC: Overall score 8.5/15.0, TSR/S&P500 at 94%/243% [6] - Allianz: Overall score 9.3/15.0, TSR/S&P500 at 133%/243% [6] - L'Oréal: Overall score 10.2/15.0, TSR/S&P500 at 168%/243% [6] - HSBC Holdings: Overall score 8.7/15.0, TSR/S&P500 at 203%/243% [6] Consistently Successful Firms - EssilorLuxottica: Overall score 10.5/15.0, TSR/S&P500 at 204%/243% [7] - AXA: Overall score 9.0/15.0, TSR/S&P500 at 218%/243% [7] - Novo Nordisk: Overall score 11.2/15.0, TSR/S&P500 at 103%/243% [7] - Enel: Overall score 9.0/15.0, TSR/S&P500 at 246%/243% [7] - LVMH: Overall score 10.8/15.0, TSR/S&P500 at 291%/243% [7] - Relx: Overall score 9.8/15.0, TSR/S&P500 at 296%/243% [7] - AstraZeneca: Overall score 10.0/15.0, TSR/S&P500 at 300%/243% [7] High Performers - Iberdrola: Overall score 9.2/15.0, TSR/S&P500 at 307%/243% [9] - Siemens: Overall score 10.2/15.0, TSR/S&P500 at 309%/243% [9] - Airbus: Overall score 10.2/15.0, TSR/S&P500 at 312%/243% [9] - SAP: Overall score 11.0/15.0, TSR/S&P500 at 357%/243% [9] - Zurich Insurance Group: Overall score 9.2/15.0, TSR/S&P500 at 370%/243% [9] - Münchener Rück: Overall score 9.4/15.0, TSR/S&P500 at 402%/243% [9] - Linde PLC: Overall score 10.0/15.0, TSR/S&P500 at 424%/243% [9] - ABB: Overall score 10.2/15.0, TSR/S&P500 at 444%/243% [9] - Schneider Electric: Overall score 10.5/15.0, TSR/S&P500 at 486%/243% [9] - Hermes: Overall score 11.0/15.0, TSR/S&P500 at 546%/243% [9] - Rheinmetall: Overall score 9.5/15.0, TSR/S&P500 at +1000%/243% [9] - ASML: Overall score 11.5/15.0, TSR/S&P500 at 1070%/243% [9]