Core Insights - The global luxury goods industry is seeking a new balance amid structural differentiation, driven by creative innovation, market restructuring, and strategic focus [1] Group 1: Company Performance - Prada Group reported a revenue of €4.07 billion for the nine months ending September 30, 2025, an increase of 8.9% year-on-year, with Miu Miu's sales soaring by 41% [2] - Unilever's Q3 sales exceeded expectations, driven by double-digit growth in beauty brands like Dove, with a total turnover of €14.7 billion, down 3.5% year-on-year [3] - Chanel appointed Sarah Weisz-Pirel as the new communications director, emphasizing the brand's strategic focus on crisis and reputation management [4][5] - Kering's Q3 revenue fell by 10% to €3.42 billion, but the decline is narrowing compared to previous quarters, with North America showing a surprising 3% same-store sales growth [6] - L'Oréal's Q3 sales reached €10.33 billion, a 0.5% increase year-on-year, but still below analyst expectations [7][8] - Hermès reported a 9.6% increase in sales to €3.88 billion, although it fell short of market expectations [10][11] - LVMH is considering selling a 50% stake in Fenty Beauty, reflecting a strategic reassessment of its diverse business portfolio [12] - Ermenegildo Zegna's Q3 revenue grew by 0.2% to €398.2 million, with significant improvement in the Greater China region [13][14] Group 2: Market Trends - Swiss watch exports to the U.S. plummeted by 55.6%, resulting in the U.S. losing its status as the largest export market for Swiss watches [17] - The luxury goods sector is witnessing a shift towards high-end beauty and personal care products, as evidenced by Unilever's strategic focus [3][6] - The appointment of Grace Wales Bonner as Hermès' menswear creative director signifies a cultural and strategic shift towards contemporary aesthetics [16] - The collaboration between Hyatt and Home Inn to enter the long-stay hotel market indicates the growing potential of the business travel segment in China [18][19]

Core Viewpoint - L'Oréal is transitioning from a growth myth back to operational reality, reflecting a slowdown in the global beauty market, with two consecutive quarters of underperformance against expectations [1] Financial Performance - In Q3, L'Oréal reported sales of €10.33 billion, a 0.5% year-on-year increase, reversing a 1.3% decline in the previous quarter, but still below analyst expectations of €10.44 billion [1] - Same-store sales grew by 4.2%, an improvement from 2.4% in Q2, yet it marked the second consecutive quarter below market expectations of 4.85% [2] Market Reactions - Following the earnings report, L'Oréal's stock initially rose by 2% but quickly fell, with intraday losses reaching up to 6% [3] - Investor concerns are rising regarding the quality of L'Oréal's growth, indicating that the recovery is uneven [4] Regional Performance - North Asia emerged as a significant highlight, with Q3 same-store sales achieving a 4.7% growth, significantly surpassing analyst expectations of 3.2%, following a decline of over 11% in Q2 [5] - The Chinese market recorded moderate single-digit growth, marking the first positive growth in Q3 over two years, driven by a recovery in the high-end skincare market [6] - In contrast, North America experienced a notable slowdown, with Q3 sales down 4.3% and same-store sales only increasing by 1.4%, far below the expected 4.4% [7] Business Segment Performance - The mass cosmetics division saw a sales increase of 0.4%, with same-store sales growing by 3.8%, slightly above the previous quarter's performance [9] - The high-end cosmetics division experienced a 1.5% decline, but the drop was more than halved compared to Q2, indicating signs of recovery in high-end consumption [10] - The professional hair products division reported a same-store sales growth of 5.1%, while the skin science and beauty segment remained the fastest-growing, with sales up 6.1% and same-store sales growth of 9.3% [11] Market Outlook - Despite the recovery signals in North Asia, market reactions suggest that L'Oréal's revival has not met confidence expectations [12] - Analysts view Q3 performance as a signal of recovery from recession rather than a transition to prosperity, highlighting structural fatigue in the global cosmetics giant [14]