Financial Data and Key Metrics Changes - The group reported net revenues of €2,740 million, up 9% versus H1 2024 at constant FX, with a drag from FX of 160 basis points, leading to an increase of 8% at current exchange rates [19] - Retail sales for the period reached €2,450 million, up 10% versus H1 2024 at constant FX [19] - EBIT adjusted reached €619 million in H1 2025, with a margin of 22.6%, showing steady profitability versus H1 2024 [20] - Net income reached €386 million, in line with the same period last year [25] - Cash flow from operations reached €696 million, and the net cash position stood at €352 million [20][28] Business Line Data and Key Metrics Changes - Retail sales for the Prada brand were down 2% in the semester, while Miu Miu saw a 49% retail sales growth in the semester [21][22] - Wholesale was down 1% versus H1 2024, impacted by some degree of phasing [20] - Churches brand reported a 4% increase in retail sales in the semester [22] Market Data and Key Metrics Changes - Retail sales in Asia Pacific were up 10% in the semester, while Europe was up 9%, with Q2 impacted by lower tourist spending [23] - The Middle East delivered the best performance of the semester, up 26% in H1 [24] - Japanese retail sales decelerated against exceptionally high tourist flows in 2024, particularly in Q2 [24] Company Strategy and Development Direction - The company is focused on maintaining strong relationships with consumers and investing in new products and collections [6][10] - There is an emphasis on elevating the customer experience and enhancing the in-store experience [20][26] - The company aims to navigate the resetting luxury market by offering unique and personalized products [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a cyclical downturn and geopolitical factors affecting tourism [7][8] - There is a cautious optimism regarding the second half of the year, with expectations of improved performance despite ongoing uncertainties [30][42] - The management is focused on long-term growth and maintaining brand desirability through strategic investments [20][25] Other Important Information - Significant investments were made in sustainability initiatives, including lower impact raw materials and diversity and inclusion programs [16][17] - The company is preparing for the integration of Versace, with expectations for completion between September and November [56] Q&A Session Summary Question: Insights on American and Chinese clusters in Q2 - Chinese demand was subdued but stable, while North American demand improved slightly [38] Question: Outlook for Q3 and easier comps - Q3 is expected to be softer, but there are easier comps compared to Q2 [41][42] Question: Prada brand's new collection and pricing strategy - The focus is on maintaining credibility at higher price points while offering a balanced collection [50][51] Question: Operating leverage in H1 - The company maintained stable profitability despite increased investments in customer-facing activities [53][54] Question: Versace acquisition timeline and management plans - The acquisition is expected to finalize between September and November, with careful management of the brand's identity [56] Question: Market share gains for the Prada brand - The brand is focused on maintaining its creative identity and enhancing retail KPIs to gain market share [64] Question: Future growth for Miu Miu - The focus remains on leather goods, with plans for store expansions and maintaining brand positioning [68][70] Question: Gross margin sustainability - The gross margin is expected to remain around 80%, supported by a positive sales mix [72] Question: Profitability comparison between Miu Miu and Prada - Miu Miu is on a positive trajectory but still requires investment to catch up with Prada [110] Question: Drivers of organic growth for the group - Growth will depend on geographical opportunities and product category expansions, particularly in leather goods [114]