Q1 2025 Hermès International Société En Commandite Par Actions Earnings Call

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Operator: Ladies and gentlemen, welcome to the Q1 publication results for Hermes International.

Speaker Change: Ladies and gentlemen, and welcome to the Q1 publication results for Mis International I'm now going to hand over the floor to Mr. <unk>. If he can get a great executive VP finance and Mr. Kellogg you don't get the head of Investor relations over to you.

Operator: I'm now going to hand over the floor to Mr. Eric Djalgwet, Executive VP Finance, and Ms. Carole Dupont-Pietry, Head of Investor Relations. Over to you.

Okay.

Operator: Good morning, everybody. Thank you very much for joining.

Speaker Change: Good morning, everybody. Thank you very much for joining.

Eric Djalgwet: The group's consolidated revenue reached €4.1 billion in the first quarter of 2025, up 9% at current exchange rates and 7% at constant exchange rates. The group recorded solid growth in Q1, despite a high comparative basis last year. At the end of March 2025, currency fluctuations represented a positive impact of 49 million on revenue. At the end of March 2025, all the geographical areas posted growth. More on that later.

Speaker Change: The group's consolidated revenue reached $4 1 billion euros in the first quarter 2025.

Speaker Change: 90% at current exchange rates and 7% at constant exchange rates.

Speaker Change: The group recorded solid growth in Q1, despite the high comparative basis last year.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: At the end of March 2025 currency fluctuations represented a positive impact of 49 million on revenue at.

Speaker Change: At the end of March 20th 25, all the geographical areas posted growth more on that later.

Eric Djalgwet: The group reinforced its investment this quarter in its production capacity with three additional level workshops for the next three years, as well as in the other divisions, the distribution network and the supply chain.

Eric du Halgouët: The group reinforced its investments this quarter in its production capacity with three additional leather workshops for the next three years, as well as in the other divisions, the distribution network, and the supply chain. True to its commitment as a responsible employer and its desire to share the fruits of growth with all, those who contribute to it daily, Hermès will be distributing in 2025 more than EUR 500 million to its employees in respect of profit sharing for 2024. The group continues to create jobs to support the divisions growth. Our outlook for 2025 remain unchanged. In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence thanks to its highly integrated artisanal model. Our strong growth allows us to prepare for future economic uncertainties.

[Translator]: The group reinforced its investments this quarter in its production capacity with three additional leather workshops for the next three years, as well as in the other divisions, the distribution network, and the supply chain. True to its commitment as a responsible employer and its desire to share the fruits of growth with all, those who contribute to it daily, Hermès will be distributing in 2025 more than EUR 500 million to its employees in respect of profit sharing for 2024. The group continues to create jobs to support the divisions growth. Our outlook for 2025 remain unchanged. In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence thanks to its highly integrated artisanal model. Our strong growth allows us to prepare for future economic uncertainties.

Speaker Change: The good reinforced its investments this quarter and its production capacity with free editions.

Speaker Change: Additional workshops for the next few years as well as in the other divisions, but the distribution network and the supply chain.

Speaker Change: True to its commitment as a responsible employer and its desire to share the fruits of growth with all.

Eric Djalgwet: True to its commitment as a responsible employer and its desire to share the fruits of growth with all those who contribute to it daily, Hermes will be distributing in 2025 more than 500 million euros to its employees in respect of profit sharing for 2024. The group continues to create jobs to support the division's growth.

Speaker Change: Those should contribute to a daily basis will be distributing in 2025 more than 500 million euros to its employees in respect of profit sharing for 'twenty 'twenty four.

Speaker Change: The group continues to create jobs to support the division's growth.

Eric Djalgwet: Our outlook for 2025 remains unchanged. In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence thanks to its highly integrated artisanal model. Our strong growth allows us to prepare for future economic uncertainties.

Speaker Change: Our outlook for 2025 remain unchanged.

Speaker Change: In a more uncertain economic and geopolitical context the group.

Speaker Change: Has it moved into 2025 with a confidence thanks to its highly integrated artisan model, our strong growth allows us to prepare for future economic uncertainties over to now for the regional figures and the division breakdown.

Eric Djalgwet: Over to Carole now for the regional figures and the division breakdown. Thank you Eric.

Eric du Halgouët: Over to Carole now for the regional figures and the division breakdown. Thank you, Eric. Good morning, all. Let's take a look at the business with the different regions, and the evolutions are given at constant exchange rates. At the end of March 2025. All regions posted growth. The main trends are the following. We have Asia, excluding Japan, that is at +1% despite a particularly high comparison basis and despite the downturn in traffic in Greater China since the end of Q1 2024. Sales have been driven by the loyalty of local clients and have benefited from the house's value strategy. In March, the Taichung store reopened in Taiwan after expansion work, and in Thailand, the store in Bangkok Central Embassy mall reopened in January after renovation and extension work.

[Translator]: Over to Carole now for the regional figures and the division breakdown. Thank you, Eric. Good morning, all. Let's take a look at the business with the different regions, and the evolutions are given at constant exchange rates. At the end of March 2025. All regions posted growth. The main trends are the following. We have Asia, excluding Japan, that is at +1% despite a particularly high comparison basis and despite the downturn in traffic in Greater China since the end of Q1 2024. Sales have been driven by the loyalty of local clients and have benefited from the house's value strategy. In March, the Taichung store reopened in Taiwan after expansion work, and in Thailand, the store in Bangkok Central Embassy mall reopened in January after renovation and extension work.

Speaker Change: Thank you Hey, good morning, all let's take a look at the business.

Carole Dupont-Pietry: Good morning all. Let's take a look at the business with the different regions and evolutions are given at constant exchange rates. At the end of March 2025, all regions posted growth. The main trends are the following. We have Asia, excluding Japan, that is a plus 1% despite a particularly high comparison basis and despite the downturn in traffic in greater China since the end of Q1 2024. Sales have been driven by the loyalty of local clients and have benefited from the House's value strategy. In March, the Taoxuan store reopened in Taiwan after expansion work. And in Thailand, the store in Bangkok's Central Embassy Mall reopened in January after renovation and extension work.

Speaker Change: With the different regions and evolutions are all given at constant exchange rates at the end of March 2020 five.

Speaker Change: All regions posted growth. The main trends are the following we have Asia, excluding Japan that is plus 1%, despite a particularly high comparison basis.

Speaker Change: And despite the downturn in traffic in greater China since the end of Q1 'twenty 'twenty four.

Speaker Change: Sales have been driven by the loyalty of our local clients and have benefited from the house. This value strategy in March detection store, we opened in Taiwan.

Speaker Change: The expansion work and in Thailand, the store in Bangkok Central Embassy.

Speaker Change: Reopened in January after renovation and extension of work too.

Carole Dupont-Pietry: Japan plus 70% recorded a regular and sustained growth, driven by the loyalty of local clients. America's plus 11% posted good growth following an exceptional performance in Q4'24. Supported particularly by the solid momentum in the U.S. in March, two store openings are planned in H2 in Phoenix and Nashville. Europe excluding France is plus 13 percent, France plus 14 percent. Good results thanks to sustained local demand and dynamic tourist flows. In Italy, our Florence store reopened after renovation and extension works, and in Paris, the 15th floor. So, Hermes event was celebrated in March, very successful at the Grand Palais.

Eric du Halgouët: Japan +70% recorded regular and sustained growth driven by the loyalty of local clients. Americas +11% posted good growth following an exceptional performance in Q4 2024, supported in particular by the solid momentum in the US in March. 2 store openings are planned in H2 in Phoenix and Nashville. Europe, excluding France, is at +13%, France +14%. Good results thanks to sustained local demand and dynamic tourist flows. In Italy, our Florence store reopened after renovation and extension works. In Paris, the 15th Saut Hermès event was celebrated in March, very successful at the Grand Palais. The other area +14%, which mainly includes Middle East, continues its momentum. Let's take a look at the different divisions, different métiers, still at constant exchange rates.

[Translator]: Japan +70% recorded regular and sustained growth driven by the loyalty of local clients. Americas +11% posted good growth following an exceptional performance in Q4 2024, supported in particular by the solid momentum in the US in March. 2 store openings are planned in H2 in Phoenix and Nashville. Europe, excluding France, is at +13%, France +14%. Good results thanks to sustained local demand and dynamic tourist flows. In Italy, our Florence store reopened after renovation and extension works. In Paris, the 15th Saut Hermès event was celebrated in March, very successful at the Grand Palais. The other area +14%, which mainly includes Middle East, continues its momentum. Let's take a look at the different divisions, different métiers, still at constant exchange rates.

Speaker Change: Japan, plus 17% for call it a regular and sustained growth driven by the loyalty of local clients Americas, plus 11% posted a good growth following an exceptional performance in Q4 24.

Speaker Change: Supported and particularly by the solid momentum in the U S and much to store openings are planned in H, two in Phoenix and Nashville.

Speaker Change: Europe, excluding France is a plus 13%, France plus 14%.

Speaker Change: Good results, thanks to a sustained local demand and dynamic tourist flows in Italy, our front store reopened after renovation and extension of works in the past the 15th.

Speaker Change: M. S event was celebrated in March very successful at the company. The other area of plus 14%, which mainly includes middle east.

Carole Dupont-Pietry: The other area, plus 14%, which mainly includes Middle East, continues its momentum.

Speaker Change: <unk> instrument, let's take a look at the different divisions michie at.

Carole Dupont-Pietry: Let's take a look at the different divisions, different métiers, still at constant exchange rate. Leather Goods and Saint-Louis Métiers plus 10% achieved robust performance with new models for bags, Medora and Mousqueton. The increase in production capacities continues with the upcoming inauguration of the Lille d'Espagnac Leather Goods Workshop and also in Loup-en-Chirom and Charleville-Mézières in the Ardennes region for 2026 and 2027 respectively. They will reinforce the nine centres of expertise located across the national territory. Hermès thus continues to enforce its anchoring in France and creating jobs there. The ready-to-wear and accessories sector plus 7% confirms its momentum.

Speaker Change: At constant exchange rates.

Speaker Change: Leather goods and subtle remit heap, plus 10% achieved robust.

Eric du Halgouët: Leather Goods and Saddlery métier, +10%, achieved robust performance with new models for bags made by Mousqueton. The increase in production capacities continues with the upcoming inauguration of the L'Espagnac leather goods workshop, and also in Loupes, in Chaumes-en-Retz, and Charleville-Mézières in the Ardennes region for 2026 and 2027 respectively. They will reinforce the nine centers of expertise located across the national territory. Hermès thus continues to reinforce its anchoring in France and creating jobs there. The ready-to-wear and accessories sector, +7%, confirms its momentum. The women's autumn-winter 2025 collection was successfully presented at the beginning of the manège of the Garde Républicaine. The men's autumn-winter 2025 runway show was also very well-received in the Palais d'Iéna in January.

[Translator]: Leather Goods and Saddlery métier, +10%, achieved robust performance with new models for bags made by Mousqueton. The increase in production capacities continues with the upcoming inauguration of the L'Espagnac leather goods workshop, and also in Loupes, in Chaumes-en-Retz, and Charleville-Mézières in the Ardennes region for 2026 and 2027 respectively. They will reinforce the nine centers of expertise located across the national territory. Hermès thus continues to reinforce its anchoring in France and creating jobs there. The ready-to-wear and accessories sector, +7%, confirms its momentum. The women's autumn-winter 2025 collection was successfully presented at the beginning of the manège of the Garde Républicaine. The men's autumn-winter 2025 runway show was also very well-received in the Palais d'Iéna in January.

Speaker Change: Performance with a new models for bags middle and let's go to the increase in production capacity continues with the upcoming integration of the Lilly there's been a kind of a goods workshop.

Speaker Change: Also in loop in shield and shallow in media in the oven.

Speaker Change: Region for 26 and 27, respectively.

Speaker Change: They will reinforce the nine centers of expertise located across the National territory Mis thus continues to enforce its anchoring advance and creating jobs there.

Speaker Change: Are you ready to wear and accessories sector, plus 7% confirms its momentum the womens autumn Winter 2025 collection was successfully presented at the beginning of the match of the gallery at the beginning of the mens autumn Winter 2025 runway show was also very well received in the pellet.

Carole Dupont-Pietry: The Women's Autumn-Winter 2025 collection was successfully presented at the beginning of the Marche of the Garde Républicaine and the Men's Autumn-Winter 2025 runway show was also very well received in the Palais d'Iéna in January. The silk and tactile sector grew 5%. Thanks to its broader and more enlivened range, perfume and beauty remain stable, continue to grow with Terre d'Hermes Eau de Parfum Intense, imagined by Christine Nagel. For Hermes Beauty, we now have the new Rouge Brillant Silky, available in 14 permanent shades and a limited edition of free lipsticks.

Speaker Change: In January.

Speaker Change: The silicon textile sector grew 5%.

Eric du Halgouët: The silk and textiles sector grew 5% thanks to its broader and more enlivened range. Perfume and Beauty remained stable, continued to grow with Terre d'Hermès Eau de Parfum Intense, imagined by Christine Nagel. For Hermès Beauty, we now have the new Rouge Brillant Silky available in 14 permanent shades and a limited edition of 3 lipsticks. In a still challenging context, the watch continues its strategy based on its complications. The house also unveiled at the Geneva Watches and Wonders exhibition new complications or an iconic complication, the Le Temps Suspendu. The new porcelain tableware collection, Hermès en Contrepoint, was unveiled in January, and the other Hermès sectors are at +6% driven by jewelry. Thank you very much, ladies and gentlemen.

[Translator]: The silk and textiles sector grew 5% thanks to its broader and more enlivened range. Perfume and Beauty remained stable, continued to grow with Terre d'Hermès Eau de Parfum Intense, imagined by Christine Nagel. For Hermès Beauty, we now have the new Rouge Brillant Silky available in 14 permanent shades and a limited edition of 3 lipsticks. In a still challenging context, the watch continues its strategy based on its complications. The house also unveiled at the Geneva Watches and Wonders exhibition new complications or an iconic complication, the Le Temps Suspendu. The new porcelain tableware collection, Hermès en Contrepoint, was unveiled in January, and the other Hermès sectors are at +6% driven by jewelry. Thank you very much, ladies and gentlemen.

Speaker Change: Thanks to its broader than mine life in range.

Speaker Change: Perfume and beauty remains stable continue to grow with.

Speaker Change: Mercer, who did buffer stocks imagined back 15 Nashville.

Speaker Change: M. A C D T. We now have the new Reno silky available in some 14 permanent shades and limited edition a free lipsticks.

Carole Dupont-Pietry: In a still challenging context, I watch as it continues its strategy. based on its complications and The House also unveiled at the Geneva Watches and Wonders Exhibition new complications, or iconic complications, of the suspended time. The new porcelain tableware collection, Hermes Encontrepoint, was unveiled in January and the other Hermes sectors are at plus 6% driven by jewelry.

Speaker Change: And it's still a challenging context. So what she is continues its a strategy.

Speaker Change: Based on its complications and it.

Speaker Change: The house also unveiled at the Geneva watches <unk> wonders exhibition.

Speaker Change: Complications or iconic complicates shouldn't they don't respond to you.

Speaker Change: The new porcelain tableware collection M. S. Auckland coupon was unveiled in January and ER.

Speaker Change: Other M asset sectors at plus 6% driven by jewelry.

Carole Dupont-Pietry: Thank you very much, ladies and gentlemen. You can now ask your questions by dialing the key star and then one. Please keep to a maximum of two questions.

Speaker Change: Thank you very much ladies and gentlemen, you can now ask your questions by Dialling. The key Star and then one please keep to a maximum of two questions first question from Luca <unk> from Bernstein over to you.

Luca Solca: You can now ask your questions by dialing the key star and then one. Please keep to a maximum of two questions. First question from Luca Solca from Bernstein. Over to you. Good morning. Thank you very much, Eric and Carole. I have a question on your progression across the quarter. Have you seen with the news from the US any changes in trends? Have you seen, for example, a slowdown in some regions attributable to the increase in tariffs? Which would probably affect April more than Q1. Have you also seen any impact with job destruction in the US, where some of your competition are seeing some weaknesses appear. Thank you very much, Luca.

[Translator]: You can now ask your questions by dialing the key star and then one. Please keep to a maximum of two questions. First question from Luca Solca from Bernstein. Over to you. Good morning. Thank you very much, Eric and Carole. I have a question on your progression across the quarter. Have you seen with the news from the US any changes in trends? Have you seen, for example, a slowdown in some regions attributable to the increase in tariffs? Which would probably affect April more than Q1. Have you also seen any impact with job destruction in the US, where some of your competition are seeing some weaknesses appear. Thank you very much, Luca.

Luca Solca: First question from Luca Solca from Bernstein. Over to you.

Speaker Change: Yes.

Luca: Good morning, Thank you very much it Eric and I have a question on your progression across the quarter.

Luca Solca: Good morning. Thank you very much Eric and Carole.

Luca Solca: I have a question on your progression across the quarter. Have you Have you seen with the news from the U.S. any changes in trends? Have you seen, for example... a slowdown in some regions attributable to the increase in tariffs. which would probably affect April more than Q1, but have you also seen any impact? with job destruction in the U.S. where some of your competition are seeing some weaknesses appear.

Speaker Change: Have you.

Speaker Change: <unk> seen it with the news from the U S. Any changes in trends have you seen for example.

Speaker Change: Yeah.

Speaker Change: A a slow down in some regions.

Speaker Change: Attributable to the increase in tariffs.

Speaker Change: Okay.

Speaker Change: Which would probably affect April more than a coupon but have you also seen any impact.

Speaker Change: Okay.

Speaker Change: We have a job description these trucks in sorry in the U S.

Speaker Change: Okay.

Speaker Change: Where some of your competition are seeing some weakness is a dear thank.

Eric Djalgwet: Thank you very much, Luca.

Speaker Change: Thank you very much Luca first of all to answer your first question on America.

Eric du Halgouët: First of all, to answer your first question on America, we've grown to the tune of 11% in Q1. It's a virtuous growth because there is a scope effect and a price effect that is of about 5%. Double-digit growth, and you can see it in the US, Mexico, Canada, and Brazil. It's really all of the Americas. In Q1, we had a start of the year, which was a bit slow because of the climate events and the fires in LA, whereby we had to close our stores in Beverly Hills and Topanga.

[Translator]: First of all, to answer your first question on America, we've grown to the tune of 11% in Q1. It's a virtuous growth because there is a scope effect and a price effect that is of about 5%. Double-digit growth, and you can see it in the US, Mexico, Canada, and Brazil. It's really all of the Americas. In Q1, we had a start of the year, which was a bit slow because of the climate events and the fires in LA, whereby we had to close our stores in Beverly Hills and Topanga.

Eric Djalgwet: First of all, to answer your first question on America, we've grown to the tune of 11% in Q1. It's a virtuous growth because there is a scope effect and a price effect that... is of about 5%. So double-digit growth and you can see it in the US, Mexico, Canada and Brazil. So it's really all of the Americas.

Speaker Change: We've grown.

Speaker Change: To the tune of 11% in Q1, it's a virtuous growth because there is a scope effect and the price effect that.

Speaker Change: It's up about 5% so double digit growth.

Speaker Change: And you can see it in the U S, Mexico, Canada and Brazil.

Speaker Change: So it's really all of it.

Speaker Change: The Americas in Q1, we had a start of the year, which was a bit slow because of the climate events and the fires in the L. A.

Eric Djalgwet: In Q1, we had a start of the year which was a bit slow because of the climate events and the fires in L.A. whereby we had to Closer are stores in Beverley Hills and Topanga. And then there were also a lot of snow in some states, such as Florida, as unlikely as this was. The beginning of the year was also affected by very low stock levels in the US.

Speaker Change: Whereby we had to.

Speaker Change: Closer as tools in Beverly Hills and Pankaj.

Eric du Halgouët: There were also a lot of snow in some states such as Florida, as unlikely as this was. The beginning of the year was also affected by very low stock levels in the US. Our Q4 was very good in 2024 with +22%. The teams were very motivated, but our stock levels were quite low at the beginning of the year. March was very good for us in both the East and the West Coast, thanks to the replenishment of stocks. Good performances for all the divisions in the US. At the moment, there is no changes in that trend for early April, which might not be very representative because we only have 2 weeks' worth of figures. We don't see any changes in trends.

Speaker Change: And then there were also.

[Translator]: There were also a lot of snow in some states such as Florida, as unlikely as this was. The beginning of the year was also affected by very low stock levels in the US. Our Q4 was very good in 2024 with +22%. The teams were very motivated, but our stock levels were quite low at the beginning of the year. March was very good for us in both the East and the West Coast, thanks to the replenishment of stocks. Good performances for all the divisions in the US. At the moment, there is no changes in that trend for early April, which might not be very representative because we only have 2 weeks' worth of figures. We don't see any changes in trends.

Speaker Change: A lot of snow in some states such as Florida is unlikely or if this was.

Speaker Change: The beginning of the year. It was also affected by very low stock levels in the U S. Our Q4 was very good in 2024 with plus 22%. The teams were very motivated but our stock levels were quite low at the beginning of the year.

Eric Djalgwet: Our Q4 was very good in 2024 with plus 22%. The teams were very motivated, but our stock levels were quite low at the beginning of the year. and then March was very good for us. in both the East and the West Coast, thanks to the replenishment of stocks. So good performances for all the divisions in the US.

Speaker Change: Yeah.

Speaker Change: And then March was very good for us.

Speaker Change: In both the east and West coast, Thanks to the replenishment of stocks. So good performances for all the divisions in the U S.

Speaker Change: At the moment there is no.

Eric Djalgwet: At the moment, there is no changes in that trend for early April, which might not be very representative because we only have two weeks' worth of figures, but we don't see any changes in trends.

Speaker Change: Changes in the AR in that to trend for early April which might not be very represented representative because we only have two a week's worth of figures, but we don't see any changes in trends.

Eric Djalgwet: Now, for the other regions, because that's also what your question was kind of driving at, for the tariffs... More specifically, at the moment, the tariff levels have not been set or not set in stone at any rate. And since the 9th of April, we have an extra 10 percent tariff, because that's what is applicable to the EU. But we've compensated the gross effect of that extra 10 percent by increasing our prices in the US, and we'll do so from the 1st of May. And we'll do this across all the different divisions and businesses, that price increase.

Now for the other regions because that's all said what your question was kind of driving at.

Eric du Halgouët: Now for the other regions, because that's also what your question was kind of driving at. For the tariffs, more specifically, at the moment, the tariff levels have not been set or not set in stone at any rate. Since 9 April, we have an extra 10% tariffs because that's what is applicable to the EU. We've compensated the gross effect of that extra 10% by increasing our prices in the US, and we'll do so from 1 May. We'll do this across all the different divisions and businesses, that price increase. We remain cautious because we know that these announcements have a huge impact on the financial markets and the impact also on the dollar, which went from 1.03 to 1.13 today.

[Translator]: Now for the other regions, because that's also what your question was kind of driving at. For the tariffs, more specifically, at the moment, the tariff levels have not been set or not set in stone at any rate. Since 9 April, we have an extra 10% tariffs because that's what is applicable to the EU. We've compensated the gross effect of that extra 10% by increasing our prices in the US, and we'll do so from 1 May. We'll do this across all the different divisions and businesses, that price increase. We remain cautious because we know that these announcements have a huge impact on the financial markets and the impact also on the dollar, which went from 1.03 to 1.13 today.

Speaker Change: For the tariffs.

Speaker Change: More specifically.

Speaker Change: The moment the tariff levels have not been settled all set in stone at any rate and since the 19th of April we have an extra 10% tariffs because that's what is applicable to the EU.

Speaker Change: We've compensated the gross effect.

Speaker Change: Of that extra 10% by increasing our.

Speaker Change: Prices in the U S and will do so from the first of May and we'll do this across all the different divisions and businesses that price increase that we remain cautious.

Eric Djalgwet: So we remain cautious. because we know that these announcements have a huge impact on the financial markets and the impact also on the dollar which went from 1.03 to 1.13 today.

Speaker Change: Because we know that these announcements have a huge impact on the financial markets.

Speaker Change: And the impact also on the dollar which went from 1.321 point 13 today.

Speaker Change: Okay.

Speaker Change: Thank you very much just an additional question on the stock levels.

Eric Djalgwet: Thank you very much.

Charles-Louis Scotti: Thank you very much. Just an additional question on stock levels. You said, Eric, at the beginning of the year that Q4 sales were very good. What about the other region? What about the stocks for leather goods? Are they at the right level? Well, stocks have gone back to a normal level. You might have to wait a month or two here and there to have the optimum level of stocks, but we are pretty much back to normal everywhere. Next question, Charles-Louis Scotti from Kepler Cheuvreux. Over to you. Hello. Thank you very much for taking my question. I have two question. Number one, on your performance in Asia Pacific bar Japan, it looks like things were improving at the end of the year, but growth has slowed down once again in Q1.

[Translator]: Thank you very much. Just an additional question on stock levels. You said, Eric, at the beginning of the year that Q4 sales were very good. What about the other region? What about the stocks for leather goods? Are they at the right level? Well, stocks have gone back to a normal level. You might have to wait a month or two here and there to have the optimum level of stocks, but we are pretty much back to normal everywhere. Next question, Charles-Louis Scotti from Kepler Cheuvreux. Over to you. Hello. Thank you very much for taking my question. I have two question. Number one, on your performance in Asia Pacific bar Japan, it looks like things were improving at the end of the year, but growth has slowed down once again in Q1.

Eric Djalgwet: Just an additional question on stock levels. You said, Eric, at the beginning of the year that Q4 sales were very good. But what about the other region? What about the stocks for Lever Goods? Are they at the right level? Well, stocks have gone back to a normal level. You might have to wait a month or two here and there to have the optimum level of stocks, but we are pretty much back to normal.

Speaker Change: He said he said at the beginning of the year. The two Q4 sales were very good.

Speaker Change: Yes.

Speaker Change: But what about the other region.

Speaker Change: The stocks for a leather goods are there at the right level.

Speaker Change: Well stocks have gone back to a normal level.

Speaker Change: You might have to wait a month or two here and there to to have the optimum level of stocks, but we have pretty much back to normal everywhere.

Speaker Change: Next question Sandwich Cookie from Kip, let's shift over to you.

Charles-Louis Cotillier: Next question, Charles-Louis Cotillier from Kepler Chevreux. Hello, thank you very much for taking my question. I have two.

Speaker Change: Hello. Thank you very much for taking my question I have two questions number one on your performance in Asia Pacific Japan.

Charles-Louis Cotillier: Question number one on your performance in Asia-Pacific bar Japan. It looks like things were improving at the end of the year, but growth has slowed down once again in Q1. Can you give us a bit more granularity on the greater China performance?

Speaker Change: It looks like things were improving at the end of the year, but the growth has slowed down once again in Q1 can you give us a bit more granularity on the greater China performance is it.

Eric du Halgouët: Can you give us a bit more granularity on the Greater China performance? Is it down to the drop in footfall, or is it the conversion rate going down? Second question on tariff. You are going to compensate that by a price increase. Could you give us an idea of the price increase that you are aiming for at beginning of May? For Asia Pacific, there is a small amount of growth, but with a high comparison basis because growth was at 14% in Q1 2024. Now for Greater China, more specifically, we are pretty much flat compared to 2024 and compared to Q1 2024, in spite of a high comparative basis. We had a very good, for example, Chinese New Year last year.

[Translator]: Can you give us a bit more granularity on the Greater China performance? Is it down to the drop in footfall, or is it the conversion rate going down? Second question on tariff. You are going to compensate that by a price increase. Could you give us an idea of the price increase that you are aiming for at beginning of May? For Asia Pacific, there is a small amount of growth, but with a high comparison basis because growth was at 14% in Q1 2024. Now for Greater China, more specifically, we are pretty much flat compared to 2024 and compared to Q1 2024, in spite of a high comparative basis. We had a very good, for example, Chinese New Year last year.

Charles-Louis Cotillier: down to the drop in footfall, or is it the conversion rate going down?

Speaker Change: Down to the drop in our footfall or is it the conversion rates going down.

Charles-Louis Cotillier: Second question, on tariff, you're going to compensate that by a price increase.

Speaker Change: Second question on the tariff you're going to compensate that by a price increase could you give us an idea of the price increase that youre aiming for at the beginning of May.

Eric Djalgwet: Could you give us an idea of the price increase that you're aiming for at the beginning of May? of Asia-Pacific. There is a small amount of growth but with a high comparison basis because growth was at 14% in Q1 2024. Now for Greater China more specifically, we're pretty much flat compared to 2024 and compared to Q1 2024, in spite of a high comparative basis. We had a very good, for example, Chinese New Year last year. So this year, once again... We were able to sell as much as in 2024, which is in and of itself a good performance in the current context.

Speaker Change: Except for Asia Pacific.

Speaker Change: There is.

Speaker Change: A small amount of growth.

Speaker Change: But with a high comparison basis because growth was at 14% in Q1 2024.

Speaker Change: Now for greater China, more specifically, we're pretty much flat compared to 2024 and compared to Q1 2024 inspite of a high comparative basis.

Speaker Change: We had a very good for example, Chinese new year last year. So this year.

Eric du Halgouët: This year, once again, we were able to sell as much as in 2024, which is in and of itself a good performance in the current context. We don't see any changes in trends in the Asia Pacific area. That's the main takeaway. Now, when you look at Taiwan, we have very dynamic growth there with a value strategy and very loyal customers. In Macau, the situation is a bit more complicated with a drop in Chinese tourists. Hong Kong, no huge changes in the trends. We saw that there was a drop in tourism from mainland China and the competition also from Shenzhen. We have a lot of people from Hong Kong who go to Shenzhen.

[Translator]: This year, once again, we were able to sell as much as in 2024, which is in and of itself a good performance in the current context. We don't see any changes in trends in the Asia Pacific area. That's the main takeaway. Now, when you look at Taiwan, we have very dynamic growth there with a value strategy and very loyal customers. In Macau, the situation is a bit more complicated with a drop in Chinese tourists. Hong Kong, no huge changes in the trends. We saw that there was a drop in tourism from mainland China and the competition also from Shenzhen. We have a lot of people from Hong Kong who go to Shenzhen.

Speaker Change: Once again.

Speaker Change: We were able to sell as much as in 'twenty 'twenty four.

Speaker Change: Which.

Speaker Change: Is it in and of itself a good performance in the current context.

Speaker Change: All right.

Eric Djalgwet: We don't see any changes in trends in the Asia-Pacific area. That's the main takeaway.

Speaker Change: We didn't see any changes in trends in the Asia Pacific area.

Speaker Change: The main takeaway now when you look in Taiwan.

Eric Djalgwet: Now, when you look at Taiwan. We have very dynamic growth there with a value strategy and very loyal customers. In Macau the situation is a bit more complicated with a drop in Chinese Tourist, Hong Kong, no huge changes in the trends. We saw that there was a drop in tourism from Mainland China and the competition also from Shenzhen, so we have a lot of people from Hong Kong who go to Shenzhen. but Hong Kong remains an important financial hub. So we're not expecting any changes in trend. For continental China, no major changes either. No disruption in the trends that we saw in Q2, 3, and 4 last year.

Speaker Change: We have.

Speaker Change: Very dynamic growth, there with a value strategy and very loyal customers.

Speaker Change: In Macau the situation is a bit more complicated with.

Speaker Change: Yeah.

Speaker Change: The drop in our.

Speaker Change: Chinese tourists Hong Kong no huge.

Speaker Change: Changes in the trends.

We saw that there was a drop in tourism from mainland China and the competition also from the functions and so we have a lot of people from Hong Kong figure out of Shenzhen.

Eric du Halgouët: Hong Kong remains an important financial hub, so we are not expecting any changes in trend. For continental China, no major changes either. No disruption in the trends that we saw in Q2, Q3, and Q4 last year. There's one positive macroeconomic indicator, which is good for us. Real estate and exports remain quite difficult. Exports are difficult because of tariffs. When it comes to consumption, the Chinese government has implemented a number of policies which we believe will be positive. Consumption is the third pillar of China's economy, and it seems to be about to look much better. In China, we still had good performance in spite of the high comparative basis.

[Translator]: Hong Kong remains an important financial hub, so we are not expecting any changes in trend. For continental China, no major changes either. No disruption in the trends that we saw in Q2, Q3, and Q4 last year. There's one positive macroeconomic indicator, which is good for us. Real estate and exports remain quite difficult. Exports are difficult because of tariffs. When it comes to consumption, the Chinese government has implemented a number of policies which we believe will be positive. Consumption is the third pillar of China's economy, and it seems to be about to look much better. In China, we still had good performance in spite of the high comparative basis.

Speaker Change: Hong Kong.

Speaker Change: Remains an important financial hub.

Speaker Change: So we're not expecting any changes in trend to continental China, no major changes either.

Speaker Change: Uh huh.

Speaker Change: Disruption in the.

Speaker Change: Trends that we saw in Q2, three and four last year.

Speaker Change: Okay.

Eric Djalgwet: There's one positive macroeconomic indicator which is good for us, real estate and exports remain quite difficult, exports are difficult because of tariffs, but when it comes to consumption, the Chinese government has implemented a number of policies. which we believe will be positive. So consumption is the third pillar of China's economy, and it seems to be about to look much better. But in China, we still had good performance in spite of a high comparative basis. We're going to continue with our value-based strategy with a small level goods jewelry and ready-to-wear. which is going to allow us to keep revenue levels at what they were last year.

Speaker Change: There's one ER positive macroeconomic indicators, which is good for us real estate.

Speaker Change: And exports.

Speaker Change: Remain quite difficult to exports.

Speaker Change: Are difficult because of tariffs, but when you look when it comes to a consumption at the Chinese government has implemented number of policies.

Speaker Change: Which we believe will be a positive so consumption is the third pillar of China's economy, and it seems to be.

Speaker Change: About to look much better.

Speaker Change: But in China, we still had good performance in spite of a high comparative basis begin to continue with our value based strategy.

Thomas Chauvet: We're going to continue with our value-based strategy with smaller goods, jewelry, and ready-to-wear, which is going to allow us to keep revenue levels at what they were last year. We are perfectly in keeping with our budget. We had prepared for this Q1, and we are perfectly in line with what we had anticipated. Your second question on the price increase, well, we haven't set things in stone. We are calculating things. It will come out soon because the price increase will be enforced on 1 May in less than two weeks. Next question, Thomas Chauvet from Citi. Over to you. Good morning, Eric and Carole. Two quick questions.

[Translator]: We're going to continue with our value-based strategy with smaller goods, jewelry, and ready-to-wear, which is going to allow us to keep revenue levels at what they were last year. We are perfectly in keeping with our budget. We had prepared for this Q1, and we are perfectly in line with what we had anticipated. Your second question on the price increase, well, we haven't set things in stone. We are calculating things. It will come out soon because the price increase will be enforced on 1 May in less than two weeks. Next question, Thomas Chauvet from Citi. Over to you. Good morning, Eric and Carole. Two quick questions.

Speaker Change: A small leather goods jewelry and ready to wear.

Speaker Change: Which is going to allow us to keep our revenue levels.

Speaker Change: At what they were last year, and we are perfectly in keeping with our budget.

Eric Djalgwet: And we are perfectly in keeping with our budget. We had prepared for this Q1 and we are perfectly in line with what we had anticipated.

Speaker Change: Budget, we had prepared for this Q1 and we are perfectly in line with what we had anticipated.

Eric Djalgwet: Your second question on the price increase, well we haven't set things in stone, we are calculating things, it will come out soon because the price increase will be enforced on May the 1st in less than two weeks.

Speaker Change: Your second question on the price increase what we haven't.

Speaker Change: Set things in stones, we are calculating things it will come out soon.

Speaker Change: Because of the price increase will be enforced on made the first at less than two weeks.

Speaker Change: Okay.

Speaker Change: Next question Thomas she'll be from city MTA.

Thomas Chauvet: Next question, Thomas Chauvet from CETI, over to you. Good morning, Eric and Carole. Two quick questions.

Speaker Change: Good morning, Eric.

Speaker Change: Two quick questions first of all.

Thomas Chauvet: First of all, Could you maybe give us a breakdown volume, price, and mix for Q1? for the main categories. It seems that there's a drop in volume for most divisions in Q1 apart from leather.

Eric du Halgouët: First of all, could you maybe give us a breakdown of volume, price, and mix for Q1 for the main categories? It seems that there's a drop in volume for most divisions in Q1, apart from leather. Do you believe that some entry price categories are a bit weaker because they expose an aspirational client base? Could you maybe tell us about the negative impacts of currencies in 2025 that you mentioned in February during the annual results? Tell us also about your currency hedges and the drop in the value of the dollar and the RMB.

[Translator]: First of all, could you maybe give us a breakdown of volume, price, and mix for Q1 for the main categories? It seems that there's a drop in volume for most divisions in Q1, apart from leather. Do you believe that some entry price categories are a bit weaker because they expose an aspirational client base? Could you maybe tell us about the negative impacts of currencies in 2025 that you mentioned in February during the annual results? Tell us also about your currency hedges and the drop in the value of the dollar and the RMB.

Speaker Change: Yeah.

Speaker Change: Could you maybe gave us a breakdown.

Speaker Change: Volume price and mix for Q1.

Speaker Change: For the main categories. It seems that Theres a drop in volume for most divisions in Q1 apart from leather.

Speaker Change: Do you believe that.

Thomas Chauvet: Do you believe that some. entry prices, some categories are a bit weaker because they're exposed to an aspirational client base.

Speaker Change: <unk>.

Speaker Change: Some.

Speaker Change: Entry prices, some can't increase a bit.

Speaker Change: We kept because that person aspirational client base.

Eric Djalgwet: And could you maybe tell us about the negative impacts of currencies in 2025 that you mentioned in February during the annual results? Tell us also about your currency hedges and the drop in the value of the dollar and the RMB. Now regarding the price volume breakdown, what you can see is that our mature markets, France, Europe and Japan are areas where we are posting solid growth and areas where volumes are also increasing once you've removed the price effect.

Speaker Change: And could you maybe tell us about the negative impacts of currency in 2025 that you mentioned are in.

Speaker Change: In February during the annual results tell us will say about your currency hedges and.

Speaker Change: The drop in the value of the dollar and the NMB.

Speaker Change: Yeah.

Eric du Halgouët: Now, regarding the price volume breakdown, what you can see is that our mature markets, France, Europe, and Japan, are areas where we are posting solid growth and areas where volumes are also increasing once you've removed the price effect. It's worth highlighting this because in these complicated times, local customer bases play a very important role for the group and helps us secure growth. For the US, as I said, the volumes have increased. It's only in China where things are a bit more complicated, although there is a high comparative basis effect. The divisions that are struggling the most, and it's mainly because of China, it's silk and fashion accessories and watches.

[Translator]: Now, regarding the price volume breakdown, what you can see is that our mature markets, France, Europe, and Japan, are areas where we are posting solid growth and areas where volumes are also increasing once you've removed the price effect. It's worth highlighting this because in these complicated times, local customer bases play a very important role for the group and helps us secure growth. For the US, as I said, the volumes have increased. It's only in China where things are a bit more complicated, although there is a high comparative basis effect. The divisions that are struggling the most, and it's mainly because of China, it's silk and fashion accessories and watches.

Speaker Change: Okay.

Speaker Change: Now regarding the price volume.

Speaker Change: The breakdown, but you can see is that our.

Speaker Change: Our mature markets, France, Europe, and Japan, all areas, where we are posting solid growth.

Speaker Change: And areas where volumes are also increasing once you've removed the price effect.

Speaker Change: It's worth highlighting this because in these are complicated times, a local customer basis play a very important role for the group group and helps us secure growth.

Eric Djalgwet: It's worth highlighting this because in these complicated times, local customer bases play a very important role for the group and helps us secure growth. For the U.S., as I said, the volumes have increased. It's only in China where things are a bit more complicated, although there is a high comparative basis effect. The divisions that are struggling the most, it's mainly because of China, it's silk and fashion accessories and watches also, as you have seen. high-value watches with high levels of complication. And extrapolating growth with the volumes is a bit...

Speaker Change: For the U S. As I said the volumes have increased.

Speaker Change: 70 in China, where things are a bit more complicated although there is a high comparative basis effect.

Speaker Change: The divisions that are struggling the most and it's mainly because of China, it's a silk and fashion accessories.

Speaker Change: And watches also as you've seen.

Eric du Halgouët: Also, as you have seen, watches where the comparative basis was very high with a very good Chinese New Year for watches, where we sold our iconic products, but also high value watches with high levels of complication. Extrapolating growth with the volumes is a bit misleading because we started with low stock levels, especially for leather goods. Now for the currency effect, no changes there. We're expecting a negative impact for our P&L, but we're covered for that. What might change is our coverage or hedging for 2026, but it's too early to say that. There's the conversion effect, whereby this gap between the constant and current growth will probably be smaller. The gap will be closed down.

[Translator]: Also, as you have seen, watches where the comparative basis was very high with a very good Chinese New Year for watches, where we sold our iconic products, but also high value watches with high levels of complication. Extrapolating growth with the volumes is a bit misleading because we started with low stock levels, especially for leather goods. Now for the currency effect, no changes there. We're expecting a negative impact for our P&L, but we're covered for that. What might change is our coverage or hedging for 2026, but it's too early to say that. There's the conversion effect, whereby this gap between the constant and current growth will probably be smaller. The gap will be closed down.

Speaker Change: What is where the comparative basis.

Speaker Change: Very high with.

Speaker Change: A very good Chinese new year for watches, where we sold our iconic products, but also.

Speaker Change: Hi value watches with high levels of complication.

Speaker Change: And extrapolating our growth with volumes is a bit.

Speaker Change: Misleading, because we started with low stock levels, especially for leather goods not for the currency effects.

Eric Djalgwet: Misleading, because we started with low stock levels, especially for leather goods.

Eric Djalgwet: Now, for the currency effect... No changes there, we're expecting a negative impact. for our PNL, but we're covered for that. growth will probably be smaller, the gap will be closed down.

Speaker Change: No changes there, we're expecting a negative impact.

Speaker Change: For our.

Speaker Change: Uh huh.

Speaker Change: P&L.

Speaker Change: But we're covered for that.

Speaker Change: What might.

Speaker Change: Change is our coverage or hedging for 2026, but it's too early to say that and then they see conversion effect.

Speaker Change: Whereby there's a gap between the constant and current.

Speaker Change: Growth will probably be a smaller company.

Speaker Change: Capital B close down.

Speaker Change: Okay.

Speaker Change: Next question.

Edouard Aubin: Next question, Edouard Aubin from Morgan Stanley. Good morning Eric and Carole. First question. Eric, the consensus is a speed up of growth over the next few quarters, of course you have a crystal ball, but earlier... You mentioned that... You were expecting a slowdown in growth for Q1, do you think that growth is going to pick up? and... You're going to have a double-digit growth going forward.

Edouard Aubin: Next question, Edouard Aubin from Morgan Stanley. Good morning, Eric and Carole. First question. Eric, the consensus is a speed-up of growth over the next few quarters. Of course, you haven't a crystal ball, but earlier you mentioned that you were expecting a slowdown in growth for Q1. Do you think that growth is going to pick up and you're going to have a double-digit growth going forward? That's my question number one. Second question, on the headcount. You have had a lot of employees join over the last couple of years, and I believe that you also have ambitious targets for 2025. You talked about a 10% to 12% increase in the headcount. Is that correct?

[Translator]: Next question, Edouard Aubin from Morgan Stanley. Good morning, Eric and Carole. First question. Eric, the consensus is a speed-up of growth over the next few quarters. Of course, you haven't a crystal ball, but earlier you mentioned that you were expecting a slowdown in growth for Q1. Do you think that growth is going to pick up and you're going to have a double-digit growth going forward? That's my question number one. Second question, on the headcount. You have had a lot of employees join over the last couple of years, and I believe that you also have ambitious targets for 2025. You talked about a 10% to 12% increase in the headcount. Is that correct?

Speaker Change: From Morgan Stanley.

Speaker Change: Good morning, and he can call.

Speaker Change: First question.

Speaker Change: Eric Meek.

Speaker Change: The consensus is a speed up of growth over the next few quarters of course do you have any crystal ball, but earlier.

Speaker Change: You mentioned that.

Speaker Change: Okay.

Speaker Change: You were expecting a slowdown in growth for Q1 do you think that growth is going to pick up.

Speaker Change: And.

Speaker Change: Youre going to have a double digit growth going forward. That's my question number one second question.

Edouard Aubin: That's my question number one.

Edouard Aubin: Second question, on the headcount, you have... Thank you very much and have a good evening.

Speaker Change: On the head count.

Speaker Change: You have a.

Speaker Change: Okay.

Speaker Change: It had a lot of employees join them for the last couple of years and I believe that you also have ambitious targets for 2025, you talked about a 10% to 12% 10% to 12% increase.

Speaker Change: Increase in the head count is that correct and.

Eric du Halgouët: Could you maybe give us a bit more color also on your distribution network? Because the distribution network has grown or will grow by 3% for 2025, but leather goods production is going to increase by 6-7%. How are you going to reconcile all of this? The first question on growth. Yes, we remain ambitious and true to our ambitious objectives, although we of course remain cautious because of geopolitical changes that impacted the financial markets. At the moment, we haven't seen any impact, but we remain very conservative whilst keeping this ambitious growth target. We're not looking at double-digit growth, just single-digit growth. We continue our recruiting, especially for production.

Eric Djalgwet: Could you maybe give us a bit more color also on your distribution network? because the distribution network has grown or will grow by 3% for 2025, but leather goods production is going to increase by 6-7%. How are you going to reconcile all of this? So the first question on growth, yes, we remain ambitious and true to our ambitious objectives, although we of course remain cautious because of geopolitical changes that impacted the financial markets. At the moment, we haven't seen any impact, but we remain very conservative whilst keeping this ambitious growth target. We're not looking at double-digit growth, just single-digit growth, we continue our recruiting.

[Translator]: Could you maybe give us a bit more color also on your distribution network? Because the distribution network has grown or will grow by 3% for 2025, but leather goods production is going to increase by 6-7%. How are you going to reconcile all of this? The first question on growth. Yes, we remain ambitious and true to our ambitious objectives, although we of course remain cautious because of geopolitical changes that impacted the financial markets. At the moment, we haven't seen any impact, but we remain very conservative whilst keeping this ambitious growth target. We're not looking at double-digit growth, just single-digit growth. We continue our recruiting, especially for production.

Speaker Change: Could you maybe give us a bit more.

Speaker Change: Color also on your.

Speaker Change: Distribution network.

Speaker Change: Yes.

Speaker Change: Because the distribution distribution network has grown well grew by 3% for 2025, but a leather goods.

Speaker Change: Production is going to increase by six 7% how are you going to reconcile all of this.

Speaker Change: Yes.

Speaker Change: So the first.

Speaker Change: Question on growth, yes, we remain ambitious and true to our ambitious objectives. Although we of course remain cautious because of geopolitical changes that impacted the financial markets at the moment, we haven't seen any impact that we remain very conservative whilst keep.

Speaker Change: This ambitious target.

Speaker Change: We're not looking at double digit growth to single digit growth.

Speaker Change: Continue our recruiting.

Speaker Change: Especially for our production so for the upstream we've got a leather good production workshops that.

Eric Djalgwet: especially for production, so for the upstream, we've got Levegood production workshops that are in the pipeline so we're going to grow the headcount but it's going to be single-digit growth and all our different divisions are growing and recruiting. And so back to the question, we're looking at what kind of numbers for 2025. an additional 1,000 to 1,500 people. Are you talking in net? Yes. Yes, indeed. It is a... compared to a basis of 25,000 people.

Eric du Halgouët: For the upstream, we've got leather goods production workshops that are in the pipeline. We're going to grow the headcount, but it's going to be single digit growth. All our different divisions are growing and recruiting. Back to the question, we're looking at what kind of numbers for 2025? An additional 1,000 to 5,000 people. Are you talking in net? Yes. Yes, indeed. It is a net compared to a basis of 25,000 people. Next question, Adrien Duverger from Goldman Sachs. Hello, Eric and Carole. Two questions on my side. First of all, you talked about the performance of the divisions in China. Could you maybe say a word about the US? I imagine small leather goods will continue to perform well because demand is so high.

[Translator]: For the upstream, we've got leather goods production workshops that are in the pipeline. We're going to grow the headcount, but it's going to be single digit growth. All our different divisions are growing and recruiting. Back to the question, we're looking at what kind of numbers for 2025? An additional 1,000 to 5,000 people. Are you talking in net? Yes. Yes, indeed. It is a net compared to a basis of 25,000 people. Next question, Adrien Duverger from Goldman Sachs. Hello, Eric and Carole. Two questions on my side. First of all, you talked about the performance of the divisions in China. Could you maybe say a word about the US? I imagine small leather goods will continue to perform well because demand is so high.

Speaker Change: In the pipeline.

Speaker Change: Ah so are we going to grow the head count.

Speaker Change: It's going to be single digit growth and all our different divisions.

Speaker Change: Growing and recruiting.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: And so.

Speaker Change: Back to the question, we were looking at what kind of numbers for 2025.

Speaker Change: Yeah.

Speaker Change: But an additional 1002 5100 people.

Speaker Change: And you took it in it yes.

Speaker Change: Yeah.

Speaker Change: Yes, indeed, it is a net.

Speaker Change: Compared to a basis of 25000 people.

Speaker Change: Yeah.

Adrien Duverger: Next question, Adrien Duverger from Golden Sacks. Hello, Eric and Carole. Two questions on my side.

Speaker Change: Next question.

Speaker Change: I'm, sorry, Dmitry from Goldman Sachs.

Speaker Change: Hello.

Speaker Change: Two questions on my side first of all you talked about the performance of the divisions in China could you maybe say a word about the U S. I imagine small leather goods will continue to perform well.

Adrien Duverger: First of all, you talked about the performance of the divisions in China. Could you maybe say a word about the US? I imagine small lever goods will continue to perform well because demand is so high.

Speaker Change: Because demand is so high but have you seen any changes in the other matches performance those that don't have the volume constraints and second question on China.

Adrien Duverger: But have you seen any changes in the other mid-tier performance, those that don't have this volume constraint?

Adrien Duverger: Have you seen any changes in the other métiers' performance, those that don't have this volume constraints? Second question on China, can you maybe comment on China in light of your experience there? Do you see any changes in consumer behavior, or do you feel that Chinese clients have a different perception of European luxury goods? In the US, no change in trends. The growth that we've seen there is attributable in a smaller part to leather goods because of low stocks at the beginning of the year. But for the other divisions or the other métier, no changes in trend. Then for China, we haven't seen any changes in consumer behaviors. Nothing about dupes or anything like that that you might read in the press. No changes in customer behavior in China. David Amaya from CIC.

[Translator]: Have you seen any changes in the other métiers' performance, those that don't have this volume constraints? Second question on China, can you maybe comment on China in light of your experience there? Do you see any changes in consumer behavior, or do you feel that Chinese clients have a different perception of European luxury goods? In the US, no change in trends. The growth that we've seen there is attributable in a smaller part to leather goods because of low stocks at the beginning of the year. But for the other divisions or the other métier, no changes in trend. Then for China, we haven't seen any changes in consumer behaviors. Nothing about dupes or anything like that that you might read in the press. No changes in customer behavior in China. David Amaya from CIC.

Eric Djalgwet: And second question on China? Can you maybe comment on China, in light of your experience there, do you see any changes in consumer behaviour, or do you feel that Chinese clients have a different perception of European luxury goods? In the US, no change in trends. The growth that we've seen there is attributable in a smaller part to leather goods because of low stocks at the beginning of the year. But for the other divisions, or the other métiers, no changes in trend.

Speaker Change: Can you maybe comment on the China in light of your experience. There do you see any changes in consumer behavior or do you feel that the Chinese clients to have a different perception of a European luxury goods.

Speaker Change: In the U S no change in trends and the growth that we've seen there.

Speaker Change: It is attributable in a smaller part to leather goods because of low stocks at the beginning of the year.

Speaker Change: But for the other divisions will they ever made no changes in trend and then for China.

Eric Djalgwet: And then for China... We haven't seen any changes in consumer behaviors. Nothing about dupes or anything like that that you might read in the press. No changes in customer behavior. in China.

We haven't seen any changes in consumer behaviors.

Speaker Change: Okay.

Speaker Change: Nothing about our Jupiter or anything like that that you might read in the press no changes in customer behavior.

Speaker Change: In China.

David Maia: David Maia from CIC. Good morning, Eric and Carole.

David: David <unk> from CIC.

David: Good morning, <unk> and Cal.

David Amaya: Good morning, Eric and Carole. A technical question on the tariffs. Can you use after-sales to reduce the impact of tariffs in the US? Could that be a way around the price transfers? The interpreter apologizes, but the sound quality is very poor from our speaker. Will the price increases only concern the United States? Or is the price increase going to be more global? Well, the price increase that we're going to implement will be just for the US, since it's aimed at offsetting the increase in tariffs that only applies to the American market. There won't be price increases in the other regions. The price increase at the beginning of the year was 16%. The second question, sorry, I didn't really catch it on the tariffs because of the sound.

[Translator]: Good morning, Eric and Carole. A technical question on the tariffs. Can you use after-sales to reduce the impact of tariffs in the US? Could that be a way around the price transfers? The interpreter apologizes, but the sound quality is very poor from our speaker. Will the price increases only concern the United States? Or is the price increase going to be more global? Well, the price increase that we're going to implement will be just for the US, since it's aimed at offsetting the increase in tariffs that only applies to the American market. There won't be price increases in the other regions. The price increase at the beginning of the year was 16%. The second question, sorry, I didn't really catch it on the tariffs because of the sound.

David: A technical question on the tariffs.

David Maia: A technical question on the tariff. Can you use after-sales to reduce the impact of tariffs in the US? Could that be a way around a...

David: Okay.

David: Okay.

David: Can you use after sales to reduce the impact of tariffs in the U S.

David: Okay.

David: Sure.

David: Yeah.

David: Yeah.

David: Could that be a way around.

David: Thanks.

Speaker Change: Price transfers the interpreter apologizes, but the sound quality is very poor from our speaker.

David Maia: The interpreter apologizes but the sound quality is very poor from our speaker. Will the price increases only concern the... United States or is the price increase going to be more global? Well, the price increase that we're going to implement will be just for the U.S. since it's aimed at offsetting the increase in tariffs that only applies to the American market. so there won't be price increases in the other regions. The price increase at the beginning of the year was 600%.

David: Right.

David: Okay.

David: Well the price increases only 10 cents.

David: United States.

David: Or is the price increase going to be more global.

David: But the price increase that we're going to implement will be just for the U S. Since its aimed at offsetting the increase in tariffs that only applies to the American market.

David: So they won't be price increases in the other regions.

David: The price increase at the beginning of the year was six 7%, but then the second question, sorry, I didn't really catch it on the tariffs because of the the sound.

David Maia: But the second question, sorry, I didn't really catch it on the tariffs because of the sound. But the price that is going to be factored in for the calculation of the tariff is going to remain the same. So we see how we can offset. and all of the countries. pay a wholesale price, which is calculated on our costs in France. That policy remains the same.

David: Right.

David: Right.

David: Sure.

Eric du Halgouët: The price that is going to be factored in for the calculation of the tariff is going to remain the same. We see how we can offset. All of the countries pay a wholesale price, which is calculated on our costs in France. That policy remains the same.

David: But the <unk> the <unk>.

[Translator]: The price that is going to be factored in for the calculation of the tariff is going to remain the same. We see how we can offset. All of the countries pay a wholesale price, which is calculated on our costs in France. That policy remains the same.

David: Price that is going to be factored in for the calculation of the tariff is going to remain the same so we see how we can offset.

David: And all of the countries are.

David: Pay a wholesale price which is a.

David: Calculated on our costs in France that policies.

Speaker Change: <unk> remains the same.

Speaker Change: Okay.

Speaker Change: Please.

Speaker Change: The next question is from the English channel with Ashley Wallace of Bank of America. Please go ahead.

Carole Dupont-Pietri: The next question is from the English channel with Ashley Wallace of Bank of America. Please go ahead.

Operator: The next question is from the English channel with Ashley Wallace of Bank of America. Please go ahead.

Ashley Wallace: Question is from the English channel with Ashley Wallace of Bank of America. Please go ahead.

Ashley Wallace: Alright. Thank you very much good morning, I can Charles Thanks for taking my questions I have two please and the first question is just back on inventory availability. You mentioned that you had like stock available in both the U S and other markets in Q1, but I was wondering if there's a way to potentially quantify the impact that this had on your rapid increase in the quarter.

Ashley Wallace: Thank you very much.

Ashley Wallace: Thank you very much. Good morning, Eric and Carole. Thanks for taking my questions. I have two, please. The first question is just back on inventory availability. You mentioned that you had low stock available in both the US and some other markets in Q1, but I was wondering if there's a way to potentially quantify the impact that this had on your revenue growth in the quarter. As supply improves into the second quarter, should we expect revenue growth back to double digit from Q2 essentially? The second question is just on Europe, which remained quite solid. I was wondering if you could give some color between how locals versus tourists performed. Maybe if I could just like, actually, I had one more question. Just on the tariffs and the price increase coming through in May in the US.

Ashley Wallace: Thank you very much. Good morning, Eric and Carole. Thanks for taking my questions. I have two, please. The first question is just back on inventory availability. You mentioned that you had low stock available in both the US and some other markets in Q1, but I was wondering if there's a way to potentially quantify the impact that this had on your revenue growth in the quarter. As supply improves into the second quarter, should we expect revenue growth back to double digit from Q2 essentially? The second question is just on Europe, which remained quite solid. I was wondering if you could give some color between how locals versus tourists performed. Maybe if I could just like, actually, I had one more question. Just on the tariffs and the price increase coming through in May in the US.

Ashley Wallace: Good morning, Eric and Carole. Thanks for taking my questions. I have two, please.

Ashley Wallace: The first question is just back on inventory availability.

Ashley Wallace: You mentioned that you had low stock available in both the US and some other markets in Q1, but I was wondering if there's a way to potentially quantify the impact that this had on your revenue growth in the quarter. And as supply improves into the second quarter, should we expect revenue growth back to double Europe, which remained quite solid?

Ashley Wallace: And as supply improves into the second quarter should we expect revenue growth back to double digit.

Ashley Wallace: From Q2, and the second question is just on the ear at which remained quite solid and just wondering if you could give some color between locals and tourists and maybe if I could just like.

Ashley Wallace: I was wondering if you could give some colour between how locals versus tourists performed.

Eric Djalgwet: And maybe if I could just like, actually add one more question, just on the tariff and the price increase coming through in May in the US, can you just confirm whether that price increase will be on the 10% confirmed tariff for today, or you're going to attempt to offset the full 20% proposed for the European market? Thank you. Hi Ashley. Thank you for your question. We confirm that regarding inventories, the impact is just limited on the Q1 concerning the very strong Q4 and sequential impact we had, and as Eric mentioned that, just the level of inventory should come to a more normal level, maybe one month or a little weeks more, but we will come back to, I would say, normality in terms of inventories for the rest of the year and the impact on the P&L.

I had one more question just on the tariff.

Ashley Wallace: This increase coming through in May in the U S. Can you just confirm whether that price increase will be on that 10% confirmed tariffs are today or you're going to see.

Ashley Wallace: Can you just confirm whether that price increase will be on the 10% confirmed tariff for today, or you're going to attempt to offset the full 20% proposed for the European market? Thank you.

Ashley Wallace: Can you just confirm whether that price increase will be on the 10% confirmed tariff for today, or you're going to attempt to offset the full 20% proposed for the European market? Thank you.

Ashley Wallace: And to offset that to 20% applies to the European market. Thank you.

Hi, Ashley well. Thank you for your question, so we confirm that regarding inventory.

Eric du Halgouët: Hi, Ashley. Well, thank you for your question. We confirm that, regarding inventories, the impact is just limited on the Q1 concerning the very strong Q4 and sequential impact we had. As Eric mentioned that, just the level in inventory just should come to a more normal level, maybe one month or a little weeks more. We will come back to, I would say, normality in terms of inventories for the rest of the year and the impact on the P&L.

Carole Dupont-Pietri: Hi, Ashley. Well, thank you for your question. We confirm that, regarding inventories, the impact is just limited on the Q1 concerning the very strong Q4 and sequential impact we had. As Eric mentioned that, just the level in inventory just should come to a more normal level, maybe one month or a little weeks more. We will come back to, I would say, normality in terms of inventories for the rest of the year and the impact on the P&L.

Ashley Wallace: The impact is so limited in the Q1 concern concerning the very strong Q4 sequential.

Ashley Wallace: We had and as Eric mentioned that.

Ashley Wallace: Just to the level of inventory just tissue dash with that should come to a more normal level, maybe one month or.

Ashley Wallace: Two weeks more but we will come back.

Ashley Wallace: Oh, Hey, normality in terms of inventory for the rest of the year and the impact on the on the on the P&L.

Eric du Halgouët: Just regarding Europe, what you saw is just a trend which is just dynamic both with local demand and tourist flow. Eric du Halgouët mentioned also with different nationalities, just US, Middle East, some parts of Asia. Well, just not just the Chinese tourist flow regarding the trends. Last point regarding the tariff, maybe you can just precise a little more.

Ashley Wallace: Just just regarding Europe.

Carole Dupont-Pietri: Just regarding Europe, what you saw is just a trend which is just dynamic both with local demand and tourist flow. Eric du Halgouët mentioned also with different nationalities, just US, Middle East, some parts of Asia. Well, just not just the Chinese tourist flow regarding the trends. Last point regarding the tariff, maybe you can just precise a little more.

Carole Dupont-Pietry: Just regarding Europe, what you saw is just a trend which is just dynamic, both with local demand and tourist flow, just as Eric mentioned also, with different nationalities, just the U.S., Middle East, some parts of Asia, not just the Chinese tourist flow regarding the trend.

Ashley Wallace: So he's just just as a child.

Ashley Wallace: Cheese, which is.

Ashley Wallace: Just the dynamic both with.

Ashley Wallace: Local NAND.

Ashley Wallace: Two it's slow and just just.

Ashley Wallace: Just mentioned so with the different.

Ashley Wallace: Different nationalities.

Ashley Wallace: Just the U S middle East some parts of <unk>.

Ashley Wallace: It wasn't just to just to not.

Speaker Change: Just the Chinese tourists so.

Ashley Wallace: Regarding the churn.

Ashley Wallace: Last point regarding the tariff, maybe you can just precise a little more. I guess on the tariff at the moment, there's a 10% blanket tariff for moving production or moving product into the U.S. for right now, and there's a 90-day rupee on the 20% potential tariff that will potentially be put in place for Europe. So I was just wondering, when you do the pricing in May, will it be to offset the initial 10% tariff, or will you look to do the 20% tariff that's being proposed for Europe? Thank you. So, the weight that we have regarding this tariff is 10%, and the idea is just to fully offset this impact, I would say this growth impact, in 2025, considering this new tariff with this increase of price on all the different mid-tier forex in the U.S.

Ashley Wallace: Last point regarding regarding the tariff maybe you can just precise a little more.

Ashley Wallace: And I guess on the tariffs at the 19th and.

Ashley Wallace: I guess on the tariff at the moment, there's a 10% blanket tariff for moving production or moving product into the US for right now, and there's a 90-day repeal on the 20% potential tariff that will potentially be put in place for Europe. I was just wondering, when you do the pricing in May, will it be to offset the initial 10% tariffs, or will you look to do the 20% tariff that's being proposed for Europe?

Ashley Wallace: I guess on the tariff at the moment, there's a 10% blanket tariff for moving production or moving product into the US for right now, and there's a 90-day repeal on the 20% potential tariff that will potentially be put in place for Europe. I was just wondering, when you do the pricing in May, will it be to offset the initial 10% tariffs, or will you look to do the 20% tariff that's being proposed for Europe?

Ashley Wallace: 10% tariffs or I'm, leaving production only interact inkjet the U S. So right now in less than 90 days.

Of that 20% that's actual tariff that will.

Ashley Wallace: <unk> put in place for here right. So I was just wondering when you create a pricing in Maine will that be.

Ashley Wallace: To offset that.

Ashley Wallace: Initial 10% tariff or will you look to do.

Ashley Wallace: That's being enterprise to Europe.

Eric du Halgouët: The weight, you know, the weight that we have regarding this tariff is this 10%. The idea is just to fully

Carole Dupont-Pietri: The weight, you know, the weight that we have regarding this tariff is this 10%. The idea is just to fully

Ashley Wallace: Right.

Ashley Wallace: The way that we are that we have regarding who said it's terry.

Ashley Wallace: 10% on the IV is honored.

Speaker Change: Truly just Justin just.

Carole Dupont-Pietri: To offset.

Éric du Halgouët: To offset.

Ashley Wallace: Offset this impact.

Eric du Halgouët: Offset this impact, I would say this growth impact in 2025, considering this new tariff with this increase of price on all the different métier for us in the US from 1 May.

Carole Dupont-Pietri: Offset this impact, I would say this growth impact in 2025, considering this new tariff with this increase of price on all the different métier for us in the US from 1 May.

Ashley Wallace: I would say the growth impact.

Ashley Wallace: Two in 'twenty five considering you said this new tariff increase.

Ashley Wallace: Increase of price on all our all the different <unk>.

Ashley Wallace: The key for us.

Carole Dupont-Pietry: from 1st of May. In addition to your question, the growth in Europe, we can observe that in the UK, Italy, as well as Germany, Switzerland, Spain, Austria, and so on. So it's a homogeneous growth throughout all the countries in Europe. And the biggest nationality in terms of export sales are, as Carole mentioned, Middle East and U.S.

Ashley Wallace: In the U S from first snake.

Ashley Wallace: Okay. Thank you.

Ashley Wallace: Okay. Thank you.

Ashley Wallace: Okay. Thank you.

Carole Dupont-Pietri: In addition to your question, the growth in Europe is we can observe that in the UK, Italy, as well as Germany, Switzerland, Spain, Austria, and so on. It's homogeneous growth throughout all the countries in Europe. The biggest nationalities in terms of export sales are, as Carole mentioned, Middle East and US.

Éric du Halgouët: In addition to your question, the growth in Europe is we can observe that in the UK, Italy, as well as Germany, Switzerland, Spain, Austria, and so on. It's homogeneous growth throughout all the countries in Europe. The biggest nationalities in terms of export sales are, as Carole mentioned, Middle East and US.

Ashley Wallace: Addition to your question.

Ashley Wallace: Growth in Europe is weak.

Ashley Wallace: Can observe that in the U K, Italy, as well as Germany, Switzerland, Spain.

Ashley Wallace: And so on so it's a.

Ashley Wallace: Homogeneous growth.

Ashley Wallace: Through all of the countries in Europe and.

Ashley Wallace: The biggest.

Ashley Wallace: Nationality in terms of export sales are Calvin mentioned middle East.

Speaker Change: U S.

Ashley Wallace: Thank you. Very helpful.

Ashley Wallace: Thank you. Very helpful.

Speaker Change: Thank you very helpful.

Speaker Change: This conference is for millennia Grippo with BNP Paribas. Please go ahead.

Melania Gripo: This conference is from Melania Gripo with BNP Paribas. Please go ahead.

Carole Dupont-Pietri: Question is from Melanie Grippo with BNP Paribas. Please go ahead.

Operator: Question is from Melanie Grippo with BNP Paribas. Please go ahead.

Speaker Change: Good morning, everyone.

Melanie Grippo: Good morning, everyone. This is Melanie Grippo from BNP Paribas. I've got two questions and a clarification. First, if you could please give us, you know, a little bit of details of what are currently you see in Korea, how is the environment there? And maybe if you could state what is your performance. My second question is on the first half 2025 profitability. How should we think about it in light of your Q1 growth, and also the impact from hedging? Finally, the clarification on the inventory level when you mentioned this is just referred to leather also or also to other categories. Thank you.

Melania Grippo: Good morning, everyone. This is Melanie Grippo from BNP Paribas. I've got two questions and a clarification. First, if you could please give us, you know, a little bit of details of what are currently you see in Korea, how is the environment there? And maybe if you could state what is your performance. My second question is on the first half 2025 profitability. How should we think about it in light of your Q1 growth, and also the impact from hedging? Finally, the clarification on the inventory level when you mentioned this is just referred to leather also or also to other categories. Thank you.

Melania Gripo: Good morning, everyone. This is Melania Grzegorz-Hombi. I've got two questions and a clarification.

Speaker Change: For whom the MK, Panama I've got two question and a clarification first if you could please keep after it.

Melania Gripo: First, if you could please give us a little bit of details of what are currently we see in Korea? How is the environment there? And maybe if you could state what is your performance?

Speaker Change: I think there'll be a decay so without currently he's seen in Korea.

Speaker Change: How is the environment there.

Speaker Change: And maybe if you could stay 14th yield performance. My second question is on the first half 'twenty five profitability, how should we think about it in light of your Q1 growth and also the impact from hedging and finally, the clarification on the inventory level. When you mentioned decent just described.

Melania Gripo: My second question is on the first stuff, 25 profitability. How should we think about it in light of your Q1 growth and also the impact from hedging?

Eric Djalgwet: And finally, the clarification on the inventory level, when you mentioned this, is just referred to leather also or also to other categories. Thank you. Regarding your first question on Korea, we still continue to have a significant growth, more than double digits. We do not see any adverse context, considering that other brands are facing difficulties. We do not see any change. Regarding the margin, so we, of course, we are in line with our objectives today, as I mentioned, for sales. So there is no doubt for uncertainty regarding profitability, but we remain very cautious given the geopolitical risks and the big impacts on the financial markets, which could, at one step, impact some customers.

Speaker Change: Ladder also or also to other categories. Thank you.

Speaker Change: Regarding your first question on Korea.

Carole Dupont-Pietri: Regarding your first question on Korea, we still continue to have a significant growth more than double-digit. We do not see any adverse context, considering that other brands are facing difficulties. We do not see any change. Regarding the margin, of course, we are in line with our objectives today, as I mentioned, for sales. There is no doubts or uncertainties regarding profitability. We remain very cautious given the geopolitical risks and the big impacts on the financial markets, which could impact some customers. For the time being, we do not see it.

Éric du Halgouët: Regarding your first question on Korea, we still continue to have a significant growth more than double-digit. We do not see any adverse context, considering that other brands are facing difficulties. We do not see any change. Regarding the margin, of course, we are in line with our objectives today, as I mentioned, for sales. There is no doubts or uncertainties regarding profitability. We remain very cautious given the geopolitical risks and the big impacts on the financial markets, which could impact some customers. For the time being, we do not see it.

Speaker Change: We still continue to have a significant growth more than double digit.

Speaker Change: We do not see any.

Speaker Change: Any adverse.

Speaker Change: As context.

Speaker Change: Considering that all the Bronx are facing difficulties, we do not see any change regarding the margin. So we.

Speaker Change: Of course, we are in alignment with our objectives today, you know as I mentioned for sales.

Speaker Change: No.

Speaker Change: No no no no.

Speaker Change: Uncertainty regarding your profitability, but we remain very cautious.

Speaker Change: Given the geopolitical risks.

Speaker Change: And I'm.

Speaker Change: And there'll be impacts on the financial markets, which could.

Speaker Change: Impac.

Speaker Change: Impact.

Speaker Change: Some customers, but for the time being we do not see.

Eric Djalgwet: But for the time being, we do not see it. And we do not see any significant change for the forecast here.

Carole Dupont-Pietri: We do not see any significant change for the forecast this year.

Speaker Change: And we do not see any significant change.

Éric du Halgouët: We do not see any significant change for the forecast this year.

Speaker Change: For the forecast secure.

Speaker Change: Yeah.

Speaker Change: And just sorry on the <unk>.

Eric Djalgwet: And just sorry on the inventory level, just clarification whether this is just leather or also other categories when you mentioned the low inventory level. mostly on leather. For other materials, we are in line with our normative standards. Label of Inventory. Thank you very much.

Melanie Grippo: Yeah. Just sorry, on the inventory level, just clarification whether this is just leather or also other categories when you mentioned the low inventory level.

Melania Grippo: Yeah. Just sorry, on the inventory level, just clarification whether this is just leather or also other categories when you mentioned the low inventory level.

Tony: Tony just a clarification on whether this is just like there are also other categories. When you match on the low inventory level.

Carole Dupont-Pietri: It was mostly on leather. For other métier, we are in line with our normative level of inventory.

Éric du Halgouët: It was mostly on leather. For other métier, we are in line with our normative level of inventory.

Tony: It's mostly on the Mustang later for <unk>, we are in line with our.

Tony: Normative.

Tony: Level of inventory.

Melanie Grippo: Thank you very much.

Melania Grippo: Thank you very much.

Tony: Thank you very much.

Tony: So for the moment we.

Eric du Halgouët: We have no further questions for the moment. Well, I suggest that we wrap this up just by saying that Hermès over the Q1 2025 posted a revenue of EUR 4.1 billion, which is a record, better even than the Q4 2024 with the Christmas figures. We're growing across all the regions. In these uncertain times, the loyalty of our customer base is crucial. Likewise, for the quality of our products and the commitment of our teams that allow us to prepare for economic and geopolitical uncertainties with some confidence. Hermès is a strong group because of its long-term strategy, which I think has paid off, and you've seen the latest figures for the share price. Thank you very much.

[Translator]: We have no further questions for the moment. Well, I suggest that we wrap this up just by saying that Hermès over the Q1 2025 posted a revenue of EUR 4.1 billion, which is a record, better even than the Q4 2024 with the Christmas figures. We're growing across all the regions. In these uncertain times, the loyalty of our customer base is crucial. Likewise, for the quality of our products and the commitment of our teams that allow us to prepare for economic and geopolitical uncertainties with some confidence. Hermès is a strong group because of its long-term strategy, which I think has paid off, and you've seen the latest figures for the share price. Thank you very much.

Operator: We have no further questions for the moment.

Tony: We have no further questions for the moment.

Tony: What I suggest that we are rapidly this up just by saying that M. S over the first quarter of 2025.

Operator: Well, I suggest that we wrap this up just by saying that Hermes, over the first quarter of 2025, posted a revenue of 4.1 billion, which is a record. better even than Q4 2024 with the Christmas figures. So we're growing across all the regions and In these uncertain times, the loyalty of our customer base is crucial. Likewise for the quality of our products and the commitment of our teams that allow us to prepare for economic and geopolitical uncertainties with some confidence. And Hermes is a strong group because of its long-term strategy, which I think has Paid off and you've seen the latest figures for the share price Thank you very much and if you have other questions, do not hesitate.

Tony: Posted a revenue of $4 1 billion, which is a record.

Tony: Better even than that Q4 2024 with a Christmas.

Tony: So we're growing across all the regions.

Tony: And.

Tony: And these are.

Tony: Uncertain times, the loyalty of our customer base is a crucial.

Tony: Likewise for the quality of our products and the commitment of our teams.

Tony: That allow us to prepare for economic and geopolitical uncertainties with <unk>.

Tony: Some confidence.

Tony: And M. S is a strong group because of its long term strategy.

Tony: I think has.

Tony: I have paid off and you've seen the latest figures for the share price.

Tony: Thank you very much and if you have other questions do not hesitate. Thank you very much and have a great day.

Eric du Halgouët: If you have other questions, do not hesitate. Thank you very much and have a great day. Ladies and gentlemen, the conference is now over. Thank you very much for taking part. You can now sign off. Thank you.

[Translator]: If you have other questions, do not hesitate. Thank you very much and have a great day. Ladies and gentlemen, the conference is now over. Thank you very much for taking part. You can now sign off. Thank you.

Operator: Thank you very much and have a great day.

Tony: Ladies and gentlemen, the conference is now over thank you very much for taking part you cannot sign off thank you.

Operator: Ladies and gentlemen, the conference is now over. Thank you very much for taking part. You can now sign off. Thank you.