Core Insights - The luxury goods market is experiencing a slowdown, with LVMH and Kering reporting significant declines, while Hermès and Prada show modest growth of 7.1% and 7.5% respectively [1][7] - Hermès' performance is overshadowed by weak results in the Asia-Pacific market and a decline in growth for Prada's Miu Miu brand [1][8] - Following the earnings reports, Hermès' stock fell approximately 3% to €2300 per share, with a market capitalization of about €240 billion, while Prada's stock dropped 13% to HK$40.65 per share, with a market cap of around HK$104 billion [1] Hermès Performance - Hermès reported a 7.1% increase in sales to €8.034 billion for the first half of 2025, but net profit decreased to €2.2 billion from €2.4 billion due to a one-time tax in France [2] - The Asia-Pacific market, excluding Japan, saw only a 1.5% sales growth to €3.574 billion, significantly below market expectations [2] - The core leather goods and saddlery segment grew by 11.3% to €3.58 billion, while perfume and beauty sales declined by 4.1% to €248 million [3] Prada Performance - Prada's sales increased by 7.5% to €2.74 billion, with net profit rising by 0.6% to €386 million [7] - Retail sales grew by 10% to €2.453 billion, while wholesale sales fell by 1% to €220 million [7] - Miu Miu brand saw a remarkable 49% revenue increase to €780 million, although its growth rate has been slowing down [8] Market Trends - The luxury market is shifting, with consumer preferences moving towards more expressive and lower-priced items, particularly in footwear and accessories [10] - The latest Lyst report indicates that Miu Miu regained the top spot in brand popularity, reflecting a trend towards emotional resonance in purchasing decisions [9][10] - Prada's CEO emphasized the importance of focusing on structural growth despite current market challenges, with plans for sustainable expansion of the Miu Miu brand [9]

Core Insights - Hermes reported a revenue of €3.91 billion for Q2 of FY2025, reflecting a 9% year-over-year growth at constant exchange rates [2] - For the first half of the year, total revenue increased by 8% to €8.03 billion, with operating profit rising by 5.7% to €3.33 billion, maintaining a high operating margin of 41.4% despite a 60 basis points decline [2] Regional Performance - The Asia-Pacific market, including China, showed signs of cooling, with Q2 revenue growth of only 0.1% to €1.6 billion and a cumulative increase of 1.5% for the first half [2] - Japan experienced strong growth, with revenue surging by 14.7% to €390 million [2] - The Americas market grew by 12.3% to €760 million, while Europe saw a 9.1% increase to €970 million, and the Middle East recorded a robust growth of 20.4% to €180 million [2] Product Segment Performance - The leather and equestrian goods segment remained the profit backbone, with Q2 revenue growing by 14.8% to €1.77 billion, outperforming market expectations [2] - The ready-to-wear and accessories segment grew by 3.8% to €1.11 billion, driven by positive responses to the autumn/winter women's and summer men's collections in Paris and Shanghai [3] - The silk and textiles segment increased by 2.2% to €190 million, while the perfume and beauty segment declined by 7.2% to €120 million due to a high base from the previous year [3] - The watch segment fell by 5.5% to €130 million, whereas jewelry and home goods saw a growth of 14.9% to €510 million [3] Pricing Strategy - Hermes' CEO Axel Dumas stated that there are currently no plans for further price increases this year, following a previous global price hike of 7% and an additional 5% increase in the U.S. market to offset tariff impacts [3]