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With \u20ac8.03 billion in revenue (+8%) and an operating margin of 41.4%, Herm\u00e8s is once again pushing the boundaries of sector profitability, posting profit growth quarter after quarter and an operating margin above 40% for the ninth consecutive year. This is a sign of intact pricing power<\/b> (Birkin bags continue to sell for \u20ac10,000) and cost discipline.<\/p>\n
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Its geographic momentum<\/b> is also balanced, with double-digit growth in Japan<\/b> (+16%), the Americas<\/b> (+12%), and Europe excluding France<\/b> (+13%). Its balance sheet remains solid, with net cash of over \u20ac10 billion and virtually no net debt, which offers great strategic flexibility. It should be noted, however, that its Perfumes & Beauty and Watches divisions are down 4% and 8% respectively, proving that diversification beyond leather remains more volatile.<\/p>\n
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Unsurprisingly, the \u201cyear zero\u201d of Kering<\/b>‘s recovery has resulted in a 15% decline in sales<\/b> and an operating margin halved<\/b> to 12.8%. Gucci<\/b>, which still accounts for 40% of the group’s revenue<\/b>, plunged 25% after several lackluster seasons<\/b>.<\/p>\n
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However, the arrival of the new creative director, Demna, is sending positive signals (Giglio bag), but the loss of leverage from stores is being felt. Saint Laurent (-10%) partially cushioned the blow thanks to a 20% margin, while Bottega Veneta (+2%) proved that desirability can survive a downturn.<\/p>\n
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To restore confidence, Kering promoted Luca de Meo (former CEO of Renault)<\/b> to the position of CEO, issued \u20ac750 million in bonds, and accelerated the vertical integration of Kering Eyewear (+3%). Investors will have to wait<\/b> several quarters before seeing margins exceed 15% again.<\/p>\n
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The Milan-based group posted \u20ac2.74 billion in revenue (+9%) and adjusted EBIT of \u20ac619 million (22.6%). The Prada brand declined by 1.9%, but Miu Miu exploded by +49%, becoming, for the first time, the main contributor to growth. The line appeals to a younger clientele thanks to its irresistible wardrobe (pocket bags, satin ballet flats) and increased visibility on TikTok.<\/p>\n
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In addition, Prada is preparing for a major shift with the acquisition of Versace<\/b> (\u20ac1.25 billion), scheduled between September and November 2025<\/b>: the goal is to double the group’s exposure to high-margin women’s accessories and accelerate growth in the United States. At the same time, the acquisition of a 10% stake in leather supplier Rino Mastrotto<\/b> strengthens vertical integration and traceability; production capacity will be increased by 20% by 2027.<\/p>\n
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The Swiss group, whose fiscal year runs from April to March, has only published its sales<\/b> for Q1 2025\/26<\/b> at \u20ac5.41 billion, up 6%<\/b>. Jewelry houses (Cartier, Van Cleef & Arpels, Buccellati, Vhernier) accounted for 72% of quarterly sales and grew by 11%, confirming that high-end jewelry remains the most resilient category. Conversely, watch specialists fell 7%, penalized by China and Japan, but the trend is improving outside Asia. The \u201cOther\u201d business (fashion and accessories \u2013 Chlo\u00e9, Ala\u00efa, Peter Millar) declined by only 1%, evidence of a more virtuous repositioning in discreet luxury ready-to-wear.<\/p>\n
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The slowdown in China continues to weigh on the watch division<\/b>, whose margin fell to 5.3%. Richemont is responding by streamlining its product range, offering more differentiated prices for white gold and \u201cfancy\u201d diamonds, and transferring capacity to fine jewelry<\/b>. The strength of the Swiss franc remains a headwind, with the company partially hedging itself through a gradual increase in catalog prices outside the euro zone.<\/p>\n
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The Italian group’s revenues amounted to \u20ac1.22 billion (+1%)<\/b>, with a margin of 18.3%<\/b>. The Moncler brand<\/b> (85% of sales) grew by 1% in the first half of the year<\/b>, but the slowdown in the second quarter (-2%) was mainly due to lower tourist numbers in EMEA and Japan.<\/p>\n
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Management is forecasting single-digit growth in 2025, but anticipates a rebound<\/b> thanks to the expected improvement in Japanese tourism and the expansion of e-commerce in Latin America. The balance sheet<\/b> remains solid<\/b> (net cash: \u20ac981 million), offering flexibility for targeted acquisitions or a possible share buyback.<\/p>\n
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In its Q1 FY26 (April-June)<\/b>, the British fashion house limited the decline in its revenue<\/b> to -1%<\/b> (compared to -21% in Q4 FY25)<\/b>. Europe returned to positive territory<\/b> (+1%), America grew<\/b> by 4%, but China<\/b> remained negative (-5%)<\/b>.<\/p>\n
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The \u201cBurberry Forward\u201d plan is showing encouraging early signs<\/b>. The first \u201cAutumn 25\u201d collection, designed entirely by the new product team, focuses on \u201cbig ideas\u201d (Knight Blue tartan, the Rockingham bag)<\/b> and is already showing a sell-through rate 500 basis points higher than in the 2024 seasons<\/b>. In addition, the group is focusing on network optimization: 40 renovations are planned for 2025<\/b>, including the conversion of the Seoul flagship store and the rollout of the new VM concept focused on outerwear.<\/p>\n
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In summary, “ultra-luxury \u201c (Herm\u00e8s, Prada) is benefiting from inelastic demand and very high margins<\/strong>, while players undergoing repositioning (Kering, Burberry) are paying for a creative \u201dtime-out”<\/b> that amplifies their<\/b> negative leverage.<\/b> Richemont and Moncler<\/b> show that a mix focused on jewelry or technical outerwear cushions the blows.<\/b> The second half of the year will depend on the return of Chinese tourists, inventory control, and the ability of brands to maintain a credible product narrative.<\/p>\n <\/p>\n