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]