Financial Data and Key Metrics Changes - The group recorded net revenues of €4.1 billion in the first nine months of the year, up 9% compared to the same period last year at constant FX [9] - Retail sales increased by 8% in Q3 against the same comparatives in the prior year period [9] - Wholesale was up 4% in the first nine months and up 19% in Q3 [10] - Royalties grew by 11% over the period, supported by Eyewear and Beauty [11] - Exchange rates negatively impacted group revenue by approximately 260 basis points during the first nine months and 470 basis points over the quarter [11] Business Line Data and Key Metrics Changes - Prada brand delivered a resilient performance with a decline of 2% in the nine months, while Miu Miu reported sustained growth of 41% and 29% in the quarter [12] - Churches returned to double-digit growth in the quarter [12] Market Data and Key Metrics Changes - Asia Pacific delivered double-digit growth of 10% over the first nine months, with Q3 showing similar trends [13] - The Americas saw retail sales up 15% in the nine months, with Q3 at 20% [14] - Japan grew by 3% over the nine months, with Q3 down 1% but improving quarter on quarter [14] - The Middle East delivered solid performance, up 21% in the nine months, with Q3 moderation at 10% [14] Company Strategy and Development Direction - The company remains committed to creative leadership and plans to continue investing in creativity and desirability [16] - The strategy includes a cautious approach to store expansion, focusing on high-potential locations while closing underperforming stores [36] - The company aims to balance its product mix and explore opportunities in higher price segments [55] Management's Comments on Operating Environment and Future Outlook - Management noted a plateau in China, with expectations of gradual improvement but not returning to previous growth rates [78][120] - The company is optimistic about the upcoming holiday period and expects to see benefits from retail investments [18] - Management emphasized the importance of the last six weeks of the year for performance [18] Other Important Information - The company is focused on maintaining a balance between high-end and accessible products, with ongoing efforts to innovate in product offerings [55] - The company is also exploring opportunities in the jewelry category, with a new collection launched recently [83] Q&A Session Summary Question: Update on Versace integration - The transaction is not yet closed, pending authorizations [22] Question: Current trading and improvement drivers - Observations indicate a plateau in China, with local demand driving improvements in various regions [24][25] Question: Wholesale trends in Q3 - No exceptional timing of shipments was noted; trends are consistent [27] Question: Cluster trends for key product brands - All clusters showed positive performance, with local transactions driving improvements [34] Question: Store expansion plans - Miu Miu has executed store expansions, while Prada is taking a more cautious approach [36] Question: Margin expectations for the full year - Management remains on track for margin improvement, with Q4 being crucial [45] Question: FX headwinds for H2 - Hedging strategies are expected to mitigate FX issues for 2025, with potential headwinds in 2026 [51] Question: Pricing strategy for next year - The company plans to maintain its pricing strategy with adjustments based on regional differences [112] Question: Growth by category in Q3 - Leather goods showed significant growth for both Prada and Miu Miu [114]

Financial Data and Key Metrics Changes - The company reported revenues of EUR5.4 billion, up 17% at constant exchange rates, marking the fourth consecutive year of double-digit growth [6][26] - EBIT reached EUR1.28 billion with a margin of 23.6%, an increase from 22.5% in the previous fiscal year [7][28] - Net income increased by 25% year-on-year to EUR839 million [36] - The company closed the year with a net cash position of EUR600 million after significant capital expenditures and dividends [7][39] Business Line Data and Key Metrics Changes - Retail sales totaled EUR4.8 billion, up 18% versus fiscal year '23 at constant FX, driven by full-price sales [27][29] - Wholesale sales increased by 7% year-on-year, with a 4% rise in Q4 [30] - Royalties grew by 17% year-on-year, supported by eyewear and fragrances [30] Market Data and Key Metrics Changes - Asia Pacific saw a growth of 13% year-on-year, improving to 16% in Q4 [33] - Europe grew by 18% over the year, maintaining a solid growth of 16% in Q4 [33] - The Americas reported a 9% increase in retail sales, with Q4 showing an 11% improvement [34] - Japan was the best-performing region, up 46% year-on-year, with Q4 growth at 31% [34] - The Middle East also performed well, with a 26% increase over the year and 30% in Q4 [35] Company Strategy and Development Direction - The company aims for sustainable long-term growth despite challenging market conditions, focusing on brand strength and product quality [8][10] - Continued investment in store renovations and retail network improvements is a priority [8][28] - The company is committed to sustainability, reducing greenhouse gas emissions by 61% and promoting gender equality within management [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth trajectories despite a challenging environment, particularly in Greater China [42][48] - The company is prepared for potential ups and downs in the market, emphasizing a solid trend in brand performance [48][43] - The outlook for 2025 remains cautious but optimistic, with expectations of continued investment in brand desirability and market presence [43][41] Other Important Information - The company plans to increase its dividend per share to EUR0.164, reflecting a payout ratio of 50% [39] - Capital expenditures for fiscal year '24 were EUR493 million, with expectations for an increase in 2025 [37][119] Q&A Session Summary Question: Outlook for Prada's growth in 2025 - Management is confident in maintaining growth for Prada, expecting potential fluctuations but a solid overall trend [48] Question: Acquisition interests in Versace and Jimmy Choo - Management refrained from commenting on rumors but acknowledged differences in the current company structure compared to past acquisition strategies [53] Question: Profitability outlook for fiscal '25 - The focus will remain on investing behind brands rather than cutting back on marketing, aiming for moderate margin expansion [58] Question: Growth by nationality in Q4 - Chinese consumers showed low single-digit growth, while North Americans improved to high single digits [69] Question: Impact of macroeconomic conditions on the U.S. market - Management noted that consumer reactions to macroeconomic changes are not immediate, but they remain optimistic about the U.S. market [81] Question: Profitability gap between Miu Miu and Prada - Miu Miu's profitability has increased significantly, and the company aims for sustainable growth across both brands [92] Question: Retail expansion plans for 2025 - The company expects to see an increase in store openings, particularly for Miu Miu, with a focus on balancing growth and profitability [102] Question: Sales per square meter by brand - Miu Miu's productivity has substantially increased, prompting plans for more store openings [110] Question: Capital allocation and potential investments - The company plans to increase CapEx to around EUR550 million in 2025, focusing on retail and industrial investments [119] Question: Pricing strategy for 2025 - Management indicated there is room for upward pricing adjustments without drastic changes, focusing on a balanced price architecture [130] Question: Chinese consumer behavior and clienteling strategy - The company noted a stable environment for Chinese consumers, focusing on events and tourism for sales [138] Question: Dual listing considerations - There has been no progress on dual listing discussions [143]