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]

Group 1 - The core point of the article is that Hermès Group reported a strong performance in the first half of 2025, with total revenue reaching €8 billion, reflecting an 8% increase year-on-year at constant exchange rates and a 7% increase at current exchange rates [1] - All geographical regions experienced sales growth, with recurring operating income at €3.3 billion, accounting for 41.4% of sales, marking a 6% year-on-year increase [1] - The second quarter sales reached €3.9 billion, showing a 9% increase year-on-year at constant exchange rates, with all regions contributing to this growth [1] Group 2 - By region, in the first half of 2025, revenue from Asia (excluding Japan) grew by 3%, Japan saw a 16% increase, the Americas experienced a 12% rise, Europe (excluding France) grew by 13%, France's revenue increased by 9%, and other regions saw a 17% growth [1] - By department, revenue from leather goods and saddlery increased by 12%, ready-to-wear and accessories grew by 6%, silk and textiles rose by 4%, while the perfume and cosmetics segment declined by 4%, and the watch segment decreased by 8%. Other businesses, including jewelry and home products, saw a 10% increase [1]