Core Viewpoint - Berluti, a luxury brand under LVMH, remains profitable despite a decline in overall revenue for the group, showcasing its unique appeal and strong customer loyalty [3][4][29]. Group 1: Brand Performance and Financials - In the first half of 2025, LVMH reported a 4% decline in overall revenue and a net profit drop of over 22%, yet Berluti's CEO stated that the brand is thriving and performing significantly better than the average [3][4]. - Berluti's estimated annual sales are around €150 million, indicating its strong market position within the luxury sector [3][4]. Group 2: Brand Identity and Customer Perception - Berluti is perceived as a symbol of "old money," with its products serving as an identity marker for affluent individuals [12][13]. - The "Berluti Knot," a specific way of tying shoelaces unique to the brand, has become a subtle indicator of status among its wearers [12][9]. Group 3: Historical Context and Product Development - Founded in 1895 by Alessandro Berluti, the brand is renowned for its handcrafted shoes and unique Patina dyeing technique, which enhances the leather's natural luster [12][20]. - The introduction of the Andy Loafer in 1962, named after artist Andy Warhol, marked a significant product development that appealed to both the elite and the artistic community [19][20]. Group 4: Market Strategy and Customer Engagement - Berluti maintains a "low-key but high-profit" business model, focusing on a niche market of high-net-worth individuals, which allows it to avoid price wars and maintain high customer loyalty [29][30]. - The brand has shifted its strategy from expansion to enhancing customer relationships, offering services like "creative recycling" and online shoe care lessons to strengthen emotional connections with clients [31][33]. Group 5: Challenges and Future Outlook - As the luxury market evolves, Berluti faces challenges in appealing to younger, more diverse consumers who prioritize personalization and sustainability [28][33]. - The brand's traditional aesthetics and conservative values may struggle to resonate with the new generation of affluent consumers, raising questions about its future profitability and relevance [28][33].