Q3 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call

<unk> investor relation and together we are very pleased to welcome you on our saltwater fed score.

As usual I will start with the highlights of the quarter, then hoarders, who will take you through the details of the Division I will conclude and then we'll be happy to answer your questions Bill.

Before we start I kindly ask you to read the Safe Harbor statement on page two of your presentation before I move to page three and start the presentation.

Speaker #1: Les Design Gentlemen, good afternoon! I hope you are well. I'm here with Rodolphe Ozun and our head of investor relations, and together we are very pleased to welcome you to our third quarter sales call.

Yeah.

And we image showed good resilience in the first nine months of 2025 with improved trends in Q3 across all business groups fashion.

Fashion in leather goods in particular benefited from solid local demand in its key nationalities with mainland China turning positive in Q3 solid growth in the U S, which improved sequentially compared to Q2 and positive Bruce with Europeans in line with previous quarter.

Speaker #1: As usual, I will start with the highlights of the quarter, then Rodolphe will take you through the details of the division. I will conclude, and then we'll be happy to answer your questions.

Speaker #1: Before we start, I kindly ask you to read the safe harbor statement on page 2 of your presentation before I move to page 3 and start the presentation.

Do your strengths against key currencies generated a highly negative minus 5% impact in Q3 and Cohen. She's also remained a strong headwind to offshore demand in Europe and in Japan.

Speaker #1: LVMH showed good resilience in the first nine months of 2025, with improved trends in Q3 across all business groups. Fashion and Leisure Goods, in particular, benefited from solid local demand in its key nationalities, with mainland China turning positive in Q3, solid growth in the U.S., which improved sequentially compared to Q2, and positive growth with Europeans in line with the previous quarter.

Ali all divisions continue to innovate and move forward with our strategies Q.

Q3 has been a notable quarter for the fashion and is a good division in particular with pockets of excitement, including new retail concept successful shoes and looking good civil nuclear tiv designers.

Next on slide four with the sales bridge for the nine months.

Speaker #1: The euro's strength against key currencies generated a highly negative -5% impact in Q3, and currencies also remained a strong headwind to offshore demand in Europe and in Japan.

We chose the group recorded around 58 billion euros in revenue down 2% on an organic basis.

And down 4% on a reported basis after taking into account a negative 2% currency impact.

Speaker #1: Finally, all divisions continue to innovate and move forward with their strategies. Q3 has been a notable quarter for the fashion and leisure goods division in particular, with pockets of excitement, including new retail concepts successfully shown and looking ahead to several new creative designers.

For the third quarter, the Lv image group returned to growth up 1% organic and down 4% reported after taking into account the negative 5% currency impact.

Slide five outlines the geographic breakdown.

Revenues in euros.

Speaker #1: Next on slide 4, with the sales bridge for the nine months, which shows the group recorded around €58 billion in revenue, down 2% on an organic basis, and down 4% on a reported basis after taking into account a negative 2% currency impact.

The general mix remains well balanced over the first nine months of the year with Europe, including France at 26% up one point U S is stable at 25% Asia is down 2.2, 27% and Japan, though on one point to 8% and finally OS.

Speaker #1: For the third quarter, the LVMH Group returned to growth, up 1% organic and down 4% reported after taking into account the negative 5% currency impact.

Our markets, increasing two points to 14%.

Moving on slide six which highlights the improvement in trend in Q3 in our key regions and as you see improvement is visible across most of Geography's voice do United States and Asia, Excluding Japan regions turn positive in Q3.

Speaker #1: Slide 5 outlines the geographic breakdown of revenues in euros. Our regional mix remains well balanced over the first nine months of the year, with Europe, including France, at 26%, up one point. The US is stable at 25%, Asia is down two points to 27%, and Japan is down one point to 8%.

Japan also improved significantly sequentially reflective of a basis of comparison, which remains high but less challenging than in the first half of the year. You have remained broadly stable, albeit slightly impacted by tourism in Q3.

Speaker #1: And finally, other markets increased two points, to 14%. Moving on to slide 6, which highlights the improvement in trend in Q3 in our key regions, as you see, improvement is visible across most geographies.

Slide seven outlines the organic improvement of our businesses in Q3.

Fashion and as our goods so the greatest sequential improvement versus Q2.

With improved performance in nearly all the key regions, and notably Japan Asia and the U S.

Speaker #1: Both the United States and Asia excluding Japan regions turned positive in Q3. Japan also improved significantly sequentially, reflective of a basis of comparison that remains high but less challenging than in the first half of the year.

This reflects the recovery of the basis of comparison as well as pockets of improvement and it reflects continued progress is made by the brands in terms of desirability innovation and execution.

Speaker #1: Europe remained broadly stable, albeit slightly impacted by tourism in Q3. Slide 7 outlines the organic improvement of our businesses in Q3. Fashion and leisure goods saw the greatest sequential improvement versus Q2.

All of our division recorded positive growth in Q3 selectivity tallying up 7% continues to perform well with very strong performance by CFO Hall and continued improvement in their face.

What she is annually 2% continues to show good performance on iconic lines and the hangover at stores perfumes, and cosmetics up 2% also improved slightly and wine and spirits up 1% a return to growth in Q3 with improvement in Champaign.

Speaker #1: With improved performance in nearly all the key regions, and notably Japan and Asia and the US. This reflects the recovery of the basis of comparison as well as pockets of improvement, and it reflects continued progresses made by the brands in terms of desirability, innovation, and execution.

Good Roes in Jose wines and still soft demand in Kodiak.

Well, who theyre fully know sure Silva information by business group before I conclude and we open for Q&A.

Speaker #1: All other divisions recorded positive growth in Q3. Selective retailing was up 7% and continues to perform well, driven by a very strong performance from Sephora and continued improvement in the FS.

Thank you Sheila and good afternoon, everyone and we'll start as usual with wines and spirits.

Turning to slide 10, the wines and spirits business group recorded 3.9 billion euros in revenue in the first nine months of 2025. This represents a 4% decrease on an organic basis versus the first nine months of 2024, and a 7% decrease on a reported basis after taking.

Speaker #1: Watches and jewelry up 2%, continues to see a good performance on iconic lines and renovated stores. Perfumes and cosmetics up 2% also improved slightly, and wine and spirits up 1%, returned to growth in Q3, with improvement in champagne, good growth in rosé wines, and still soft demand in cognac.

Into account when they get to 2% currency embarks the numbers don't fully adopt due to rounding, but bill correct just to be clear.

Speaker #1: Rodolphe will now share further information by business group before I conclude and we open for Q&A.

Broken down shouldn't opinion warrants to a rate of 2.2 billion euros in revenue in the first nine months, a 3% increase on an organic basis and revenue was up 1% on a reported basis after taking into account. So that gets you to 3% currency impact.

Speaker #2: Thank you, Cecile, and good afternoon, everyone. We'll start, as usual, with wines and spirits. Turning to slide 10, the wines and spirits business group recorded €3.9 billion in revenue in the first nine months of 2025.

Gardner can spirits recorded $1 8 billion euros in revenue, a 12% decrease on an organic basis and a 14% decrease on a reported basis after taking into account a negative 2% currency impact.

Speaker #2: This represents a 4% decrease on an organic basis versus the first nine months of 2024, and a 7% decrease on a reported basis after taking into account a negative 2% currency impact.

Speaker #2: The numbers don't fully add up due to rounding, but they are correct, just to be clear. Broken down, champagne and wines generated €2.2 billion in revenue in the first nine months, a 3% increase on an organic basis, and revenue was up 1% on a reported basis after taking into account a negative 3% currency impact.

For the fourth quarter, specifically, the wines and spirits Division rose, 1% organic with some opinion warms up 7% wildcard American spirits declined 6%.

On slide 11, Champignon warrants continue to benefit from resilient demand in Champaign, driven notably by.

Sorry, solid depletions in the U S year to date.

Speaker #2: Cognac and spirits recorded €1.8 billion in revenue, a 12% decrease on an organic basis, and a 14% decrease on a reported basis after taking into account a negative 2% currency impact.

And by good performance or was it warrants beyond these positive elements Q3 also benefited from Champaign restocking in the U S and as a result year to date growth is probably more indicative of underlying performance for this business group.

Speaker #2: For the third quarter specifically, the Wines and Spirits division rose 1% organic, with Champagne and Wines up 7%, while Cognac and Spirits declined 6%.

Moving on to brand initiatives more additional law was the title sponsor of the Belgium Grand Prix as well as Monzo and also celebrated its return as the officials from beginning of the U S. Open.

Speaker #2: On slide 11, champagne and wines continue to benefit from resilience. Demand in champagne is driven notably by solid depletions in the U.S. year to date, and by good performance of rosé wines.

<unk> continued to deliver solid volume growth and to gain market share.

Contributing to the good performance of the U S market I was referring to and unveiled a new limited edition for its 28, you like on that vintage in collaboration with meaningful sickness.

Speaker #2: Beyond these positive elements, Q3 also benefited from champagne restocking in the U.S., and as a result, year-to-date growth is probably more indicative of underlying performance for this business group.

Missoula Arena, which also gained tangible market share appointed Cowen ensure as each new set of a master for the Big Pie you choose who held the role since 2007 Sadly passed away earlier this year and cowling, who has worked alongside further rig for nearly a decade will continue to build.

Speaker #2: Moving on to brand initiatives, Moët & Chandon was the title sponsor of the Belgian Grand Prix, as well as Monza, and also celebrated its return as the official champagne of the US Open.

Speaker #2: Veuve Clicquot continued to deliver solid volume growth and gain market share, contributing to the good performance of the U.S. market. I was referring to this and unveiled a new limited edition for its 2018 La Grande Dame vintage, in collaboration with Simon Porte Jacquemus.

On renal its commitment to innovation.

In connect and spirits Grognard performance continued to be impacted by trade tensions and soft depletions in the U S and China, Although China did benefit from restocking Engie S. A pea in the third quarter, hence the sequential improvement in trends.

Speaker #2: Maison Ruinart, which also gained tangible market share, appointed Caroline Thiot as its new Salon Master. Frédéric Panayotis, who held the role since 2007, sadly passed away earlier this year. Caroline, who has worked alongside Frédéric for nearly a decade, will continue to build on Ruinart's commitment to innovation.

Elsewhere, the division showed promising innovation from well over there and number two then mourns his partnership with Formula one and the new hospitality and risky experience out of bank.

Next to fashion and leather goods on slide 13 revenue for the division reached $27 6 billion euros for the first nine months down 6% on an organic basis and down 8% on a reported basis after taking into accounts and that gets you a 2% currency impact.

Speaker #2: In Cognac and spirits, Cognac performance continued to be impacted by trade tensions and soft depletions in the U.S. and in China. However, China did benefit from restocking in GSOP in the third quarter, hence the sequential improvement in trends.

For the first quarter of fashion goods was down 2% on an organic basis.

I'm now on slide 14, which shows some highlights by brand.

Speaker #2: Elsewhere, the division saw promising innovation from Belvedere and Éminenté, Glenmorandy's partnership with Formula One, and the new hospitality and whisky experience at Ardbeg. Next to fashion and leather goods, on slide 13, revenue for the division reached €27.6 billion for the first nine months, down 6% on an organic basis and down 8% on a reported basis after taking into account a negative 2% currency impact.

We need to continue to displace creativity across a wide range of initiatives, starting with highly desirable fashion shows by ecolab skill sets within the summer apartment of anniversary out of the residual who wildfires Williams drew inspiration from India.

The salt Purdue as backdrop.

We continued to innovate in its core leather goods lined and benefited from the enduring appeal of its mineral gram and monogram on Pons lines.

Speaker #2: For the third quarter, Fashion and Leather Goods was down 2% on an organic basis. I'm now on slide 14, which shares some highlights by brand.

In retail the opening of Louis in Shanghai, which is pictured on slide 12 has attracted incredible attention traffic, while highlighting the depth of the missiles heritage of craftsmanship and creativity and anecdotally I would argue has quickly become one over really towards the best selling locations for sue.

Speaker #2: Louis Vuitton continued to display its creativity across a wide range of initiatives, starting with highly desirable fashion shows by Nicolas Ghesquière, set within the summer apartment of Anne of Austria at the Musée du Louvre, while Pharrell Williams drew inspiration from India, with the Centre Pompidou as a backdrop.

Cases.

And finally truth registration of innovation at the end of August Riveter. We officially unveiled laboratory result, she has been very well received and includes 55 with lipsticks.

Speaker #2: The Maison continued to innovate in its core leather goods line and benefited from the enduring appeal of its Monogram and Monogram Empreinte lines. In retail, the opening of the Louis in Shanghai, which is pictured on slide 12, has attracted incredible attention and traffic while highlighting the depth of the Maison's heritage, craftsmanship, and creativity. Anecdotally, I would add that it has quickly become one of Louis Vuitton's best-selling locations for suitcases.

Nodes to Roman numeral Lv.

Crystal Joe So the inspiring first men's and women's shoes.

Designed by Jonathan the son unfolding, a contemporary expression of Crystal you on Europe.

Is also integrated to the house of Jones, New York, just steps from the location of our customers are established his U S subsidiary in 1948 and inaugurated the house of the job the values on the Hollywood drive celebrating drove history and its collections to connections to Hollywood's cause.

Speaker #2: And finally, true to the illustration of innovation, at the end of August, Louis Vuitton officially unveiled La Beauté Louis Vuitton, which has been very well received and includes 55 Rouge lipsticks in a nod to the Roman numeral LV.

You also saw the launch of the New Georgia, Ms. Jewelry collection designed by week 12 against Iran, and inspired by the Japanese art of faulting.

Speaker #2: Christian Dior saw the inspiring first men's and women's shows, designed by Jonathan Anderson, unfolding a contemporary expression of Christian Dior's new look. The Maison also inaugurated House of Dior New York, just steps from the location where Christian Dior established his U.S. subsidiary in 1948, and inaugurated the House of Dior Beverly Hills on Rodeo Drive, celebrating Dior's history and its connections to Hollywood.

To highlight some other brands.

First is the success of the bit correction or runway shows of several designers. So she was referring to its microwriter sitting Jack Mcconnell and thus our numbers accurately sarabeth eligible sheet and we're pleased to have announced the appointment of my garage of QE.

As Chief Creative Officer, often just.

Also worth highlighting this quarter is the excellent performance of lump sum up despite challenging comps and the continued growth of removal and bellucci.

Speaker #2: Christian Dior also saw the launch of the new Diorgami jewelry collection, designed by Victoire de Castellane and inspired by the Japanese art of folding.

Moving on to perfumes and cosmetics on slide 16 revenue reached 6 billion euros stable on an organic basis and down 2% on a reported basis after taking into account as a negative 2% currency impact.

Speaker #2: To quickly highlight some other brands, firstly, the successful debut collection, Orenway, showcases several designers. Cecile was referring to it: Michael Ryder at Céline, Jack McCullough and Lazaro Hernandez at Loewe, Sarah Burton at Givenchy, and we're pleased to announce the appointment of Maya Grazia Chiurri as Chief Creative Officer of Fendi.

For the third quarter specifics perfumes, and cosmetics was up 2% on an organic basis.

Slide 17 share some specific highlights by brand starting with Buffalo, Christiane, Joe, which unveiled a new can painful survive as well as its new fragrance for women Ms Jo Asos.

Speaker #2: Also, worth highlighting this quarter is the excellent performance of Loro Piana, despite challenging comps, and the continued growth of Rimowa and Berluti. Moving on to perfumes and cosmetics, on slide 16, revenue reached €6 billion, stable on an organic basis, and down 2% on a reported basis, after taking into account a negative 2% currency impact.

We also celebrated the history of MS Zhou with an exhibition in Shanghai.

Make up outperformed in Q3 for Crystal jaw supported by successful innovation, including a withdraw on stage and backstage what growth in skin care was driven by the prestige line.

Speaker #2: For the third quarter specifically, perfumes and cosmetics were up 2% on an organic basis. Slide 17 shares some specific highlights by brand, starting with Parfums Christian Dior.

For the procurement cosmetics business group hours the whole the third quarter was marked by balanced growth across product categories, driven by the good performance of get alone, which performed well in all segments as well as you don't see a quality buffer.

Speaker #2: Which unveiled a new campaign for Sauvage, as well as its new fragrance for women, Miss Dior Essence. The Maison also celebrated the history of Miss Dior with an exhibition in Shanghai.

Missile forces come Joe in fragrances.

In makeup benefits successfully launched a new foundation capitalizing on the reputation of its iconic professional franchise and makeup forever rolled out novel cheese incredible and foundation in its HD skin line.

Speaker #2: Makeup outperformed in Q3 for Christian Dior, supported by successful innovation including Rouge Dior on stage and backstage. Growth in skincare was driven by the prestige line.

Okay.

Speaker #2: For the perfume and cosmetics business group as a whole, the third quarter was marked by balanced growth across product categories, driven by the good performance of Guerlain, which performed well in all segments, as well as Givenchy Acqua di Parfum and Maison Francis Kurkdjian in fragrances.

Moving on to watches and jewelry is on slide 19, where revenue for the first nine months of twenty-five reached seven 4 billion euros.

1% on an organic basis and down 2% on a reported basis after taking into account and it gets you a 3% currency impact.

Speaker #2: In makeup, Benefit successfully launched a new foundation capitalizing on the reputation of its iconic POREfessional franchise, and Makeup Forever rolled out novelties in crayon and foundation in its HD Skin line.

What was the third quarter watches and jewelry was up 2% organic.

Yeah.

Next on to Slide 20, we outlined some of the initiatives of our watch and jewelry miserable, starting with Tiffany, which enjoyed double digit growth from its iconic lines with a particularly encouraging momentum from hardware and not renova.

Speaker #2: Moving on to watches and jewelry, on slide 19, revenue for the first nine months of 2025 reached €7.4 billion, up 1% on an organic basis and down 2% on a reported basis, after taking into account a negative 3% currency impact.

Renovated stores continue to increase in the mix and to outperform and now account for a bit more than 30% of the total in line with our plan.

And this quarter so the reopening of two stunning flagships one in ginza pictured on slide 18, and another one in Milan.

Speaker #2: For the third quarter, watches and jewelry were up 2% organic. Next, on to slide 20, we outline some of the initiatives of our watch and jewelry Maison, starting with Tiffany, which enjoyed double-digit growth from its iconic lines, with particularly encouraging momentum from Hardware and Knot.

Tiffany also enjoyed record sales in high jewelry, which continued to outperform in Q3 and yesterday.

Moving on to Bulgaria, which also enjoyed great success in high jewelry in the third quarter with its pretty Kumar collection in core jewelry. The Snapple tea line continues to perform well and the brand expanded its historic cheaper gas line.

Speaker #2: Renovated stores continued to increase in the mix and to outperform. They now account for a bit more than 30% of the total, in line with our plan. This quarter saw the reopening of two stunning flagships, one in Ginza, pictured on slide 18, and another one in Milan.

Also worth highlighting is the very good performance of Walgreens jewelry watch in Q3 and year to date.

Finally, Bulgaria also presented its largest ever exhibition in Japan called tradeoffs.

Speaker #2: Finally, Tiffany also enjoyed record sales in high jewelry, which continued to outperform in Q3 and year-to-date. Moving on to Bulgari, which also enjoyed gracious sales in high jewelry in the third quarter, with its Polychroma collection.

And took its subtle change into exhibition to Mumbai in October.

Like why is show me unveiled an exhibition at what was that.

I can say world Expo and Fred continue to grow thanks to the strength of its core Foster's line.

Speaker #2: In core jewelry, the Serpenti line continued to perform well, and the brand expanded its historic Tubogaz line. Also worth highlighting is the very good performance of Bulgari, its jewelry watch, in Q3 and year-to-date.

And what shows Tiger you are enjoying the high profile presence of the Grand Prix races, and saw strong outperformance in its formula one range, while you blue continue to innovate on materials with titanium watch and.

Speaker #2: Finally, Bulgari also presented its largest-ever exhibition in Japan, called Kaleidos, and took its Serpenti Infinito exhibition to Mumbai in October. Likewise, Chaumet unveiled an exhibition at the Osaka Kansai World Expo, and Fred continued to grow thanks to the strength of its core for this line.

Celebrated its 106 year anniversaries.

Now to discuss our lost business groups, so achieve our retailing on slide 22, we.

We chose revenue reached $12 6 million euros up 3% on an organic basis and flat on a reported basis.

Taking into account a negative 3% currency impact.

For the third quarter. So the cheese distribution was up 7% on an organic basis.

Speaker #2: In watches, TAG Heuer enjoyed a high-profile presence at the Grand Prix races and saw strong outperformance in its Formula One range, while Hublot continued to innovate with materials, featuring titanium watches, and Zenith celebrated its 160th anniversary.

Moving on to slide 23, so far delivered solid organic and like for like growth across all key regions Americas, Europe, and the Middle East and successfully launched rude, which debuted in store and online I'd say for early September in the U S and Canada and.

Speaker #2: Now to discuss our last business group selective, retailing on slide 22, which shows revenue reached €12.6 billion, up 3% on an organic basis and flat on a reported basis after taking into account a negative 3% currency impact.

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Findings. If also announce is global beauty events before you, which enables consumers to discover the newest products and trends other than master class and experience it fast playful and socially driven approach who are local lengths with three destinations this year, Shanghai, Paris and Dubai.

Speaker #2: For the third quarter, selective distribution was up 7% on an organic basis. Moving on to slide 23, Sephora delivered solid organic and like-for-like growth across all key regions: the Americas, Europe, and the Middle East. Sephora also successfully launched Rhode, which debuted in-store and online in the US and Canada in early September, marking a new record for brand launches at Sephora.

As well as the U S. Early next year.

Elsewhere GFS benefited from strong traffic in Hong Kong Macau in Q3, while Liberal Mushy continued to deliver excellent growth and distinctive cultural events, such as the Hawk and all exhibition.

Which is on until the end of this week this.

Speaker #2: Finally, Sephora also announced its global beauty event, Sephoria, which enables consumers to discover the newest products and trends at their masterclass and experience Sephora's playful and socially driven approach through a local lens, with three destinations this year: Shanghai, Paris, and Dubai, as well as the U.S. early next year.

Concludes the business group presentation, and I'll now pass back to system. Thank.

And.

Sure well, it's to conclude the presentation on page 25.

Q3 shows quite a few positive beyond the comp base and we are happy with the decision made we are encouraged by the pockets of improvement that we see in all businesses.

Speaker #2: Elsewhere, DFS benefited from strong traffic in Hong Kong and Macau in Q3, while Le Bon Marché continued to deliver excellent growth. Distinctive cultural events, such as the Rock and Roll exhibition, are on until the end of this week.

Q4 is going to be tougher when it comes to come base and we need to keep that in mind.

When we turn to next year, we will have easier comps and we absolutely building self help so all in all we are confident while we remain conscious of the macro environment, which is still challenging and continues to be pretty volatile.

Speaker #2: This concludes the business group presentation, and I'll now pass back to Cecile.

Speaker #1: Thank you, Rodolphe, and a few words to conclude the presentation. On page 25, Q3 shows quite a few positives beyond the comp base, and we are happy with the decision made.

Thank you very much for your attention and we are now thank.

Take your questions.

Thank you. This is the conference operator, we will now begin the question and answer session anyone who wishes to ask a question you May press star and one on the touch tone telephone.

Speaker #1: We are encouraged by the pocket of improvement that we see in all businesses. Q4 is going to be tougher when it comes to the comp base, and we need to keep that in mind.

First question is from Susana pose a UBS. Please go ahead.

Speaker #1: When we turn to next year, we will have easier comps, and we are solidly building self-help. So, all in all, we are confident while we remain conscious of the macro environment, which is still challenging and continues to be pretty volatile.

Good evening. Thank you for taking my questions I Hope Creek.

Well first of all maybe to follow up on the pro forma backwards my nationality.

Chinese Europeans on a marathon.

Just to get an idea what's driven most of the program for questions. If I'm not wrong I think the prior quarter tonnages were down materially blocking Europeans alumni tons were up low single digits. So please correct me if I'm wrong.

Speaker #1: Thank you very much for your attention, and we are now ready to take your questions.

Speaker #3: Thank you. This is the conference operator. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

So we know what they are comparable.

Secondly, very quick question on pricing.

The U S pallets and can you remind us if you've taken any incremental pricing.

Speaker #3: The first question is from Susanna Puus, UBS. Please go ahead.

And the last quarter, just so we understand that there's been a bit of a pricing benefit sequentially professional leather goods.

Speaker #4: Good evening. Thank you for taking my questions. I have three. So, first of all, maybe to follow up on the performance by consumer nationality and specifically the Chinese, Europeans, and Americans, just to get an idea of what’s driven most of the improvements sequentially.

And then finally, sorry I know this is probably your.

Question, but on the exit rate, especially as you mentioned that the comparables are getting tougher.

You know so we get an idea of how we should think about the next quarter I mean, I guess, maybe if I can.

Speaker #4: If I'm not wrong, I think third-quarter sales in China were down 18%, while European and American sales were up in low single digits. Please correct me if I'm wrong.

Can put it differently. If it's you know every month this quarter was sequentially better.

Speaker #4: Just so we know what we are comparing it to. Secondly, very quick question on pricing. In the U.S., tariffs, can you remind us please if you've taken any incremental pricing in the last quarter, just so that we understand if there's been a bit of a pricing benefit sequentially for fashion leather goods.

Thank you.

Thank you Susanna.

So on your first question regarding the performance by nationalities, maybe as an introduction.

Let me step back for the quarter. If we look at it broadly there are two things first we have totally recovered do comes days, which is in itself a good news and in addition to that we've been seeing forget of improvements.

Speaker #4: And then finally, sorry, I know this is probably your least favorite question, but on the exit rate, especially as you mentioned that the comparables are getting tougher, just so we get an idea of how we should think about the next quarter.

Beyond the comp base.

The improvement was a most tangible with southeast Asia that improve materially as timna.

Speaker #4: I mean, I guess maybe if I can put it differently: if every month this quarter was sequentially better. Thank you.

Timna get cheaper to improve my theory without any effect of conveys.

Speaker #1: Thank you, Susanna. So on your first question, regarding the performance by nationalities, maybe as an introduction, let me step back for the quarter. If we look at it broadly, there are two things.

The Chinese that's accelerated a bit slightly beyond the current base.

And there were some improvement here in that Americans locally is one they were also an acceleration for me there is down so we've been seeing this a sequential improvement in quite a few nationality.

Speaker #1: First, we have totally recovered the comps base, which is in itself good news. In addition to that, we've been seeing a pocket of improvements beyond the comp base.

Then on your question regarding and the U S and price.

Speaker #1: The improvement was most tangible with Southeast Asia, which improved materially. Although still negative, it showed significant improvement without any effect from the comp base. The Chinese market accelerated slightly beyond the comp base, and there were some improvements noted here and there.

If we look at fashion in leather goods overhaul the improvement sequential improvement was most teammates who improvement of traffic and volume price was not very different from Q2 and mix was around network. So you can consider that the bulk of the improvement is it.

Johan <unk> traffic and volume.

Speaker #1: Americans, locally, is one. There was also an acceleration for the Middle Eastern market, so we've been seeing this sequential improvement in quite a few nationalities. Then, on your question regarding the U.S. and price, if we look at fashion and leather goods overall, the improvement—the sequential improvement—was mostly made through an increase in traffic and volume.

On Q4, we know on and you know as well that we we love the soft gone. So it will be a year for Japan, but it will be tougher for Asia, Europe and U S.

We want to simplify it will be a four point tougher.

But at the same time, if we go beyond Q4, we know that the first half of next year will underpin Tommy have easier comps and we know that all of the decision and the actions that we are taking especially when it comes to catch everything you all we start to hit.

Speaker #1: Price was not very different from Q2, and mix was around neutral. So, you can consider that the bulk of the improvement is really around traffic and volume.

The stores next year and gradually impact each one so is that where are we where we stand when we look ahead.

Speaker #1: On Q4, we know—and you know as well—that we will have tougher comps. So it will be easier for Japan, but it will be tougher for Asia, Europe, and the U.S.

Yeah.

The next question is from Antoine Belge Bam P. Exane. Please go ahead.

Speaker #1: If we want to simplify, it will be a four-point tougher. But at the same time, if we go beyond Q4, we know that the first half of next year will, on the contrary, have easier comps. We know that all the decisions and actions that we are taking, especially when it comes to creative renewal, will start to hit the stores next year and gradually impact each one.

Yes, good evening to all of you three questions first of all Green.

Coming back on China on the Chinese you should bear killed them.

Just to come.

And you had mentioned that mainland China was pretty clear that the.

What was the trade mix cluster.

Claude or strictly Omega threes on beyond that.

Can you comment maybe a bit in terms of like new behaviors.

Speaker #1: So that's where we stand when we look ahead.

Yep.

So it changes, but maybe thinks that makes you are pretty confident.

My question regards the discounting to the sequential acceleration hurt more by Brian was it more of a V. A.

Speaker #3: The next question is from Antoine Berge, BNP Exigne. Please go ahead.

Sort of like get you more Oh, gee or yeah any color on that.

Speaker #5: Yes, good evening to all of you. Three questions. First of all, coming back on China and the Chinese, you mentioned that if you did better than just the comps, and that mainland China was positive. However, what was the performance of the Chinese cluster—flat or slightly negative on that?

Would be extremely helpful.

Certainly we wish this sort of a I would say good news, what's your attitude towards close.

Sometimes in the past.

Over the counter cyclical so happy to reinvest at Pizza hut.

Speaker #5: Can you comment maybe a bit in terms of new behaviors that I wouldn't say changes, but maybe things that make you partly confident? The second question regards, this time, the sequential acceleration but more by brand.

Are you a steer.

That mindset.

End of July.

Looking at a lot of IRA.

And you know the world is so.

Would you expect the margin to 25.

And to be able to be above its tour over the last year I remember there were quite a few one off all we know.

Speaker #5: Was it more LV, sort of like catching up more, or Dior, or any color on that? Would be extremely helpful. And thirdly, with this sort of, I would say, good news, what's your attitude towards cost? And in the same time in the past, LVMH proved a bit counter-cyclical, so happy to reinvest a bit ahead.

Still being negative and maybe to put some of the counter cyclical elements that I've mentioned.

Got it.

Second half margin being a little while that second half last year.

Lee if you could comment maybe on the FX impact.

From hedging on next year, because we saw quite a bit.

Speaker #5: Or are you still in the same mindset as the end of July and looking at a lot of ROS? In other words, would you expect the margin in H225 to be able to be above H2 of last year?

Sort of negative impact, especially in Q3 of the top line recovery predicted for this year margin. Thank you.

Thank you Antoine.

On your question regarding the Chinese cluster all what we are seeing is that we're getting very close on a standardization. So we all low single digit negative, but improving a lot on the old cluster and dishes dones, who are two things first Chinese locally.

Speaker #5: I remember there were quite a few one-off events, or with trends still being negative, and maybe some of the counter-cyclical elements that I've mentioned. You would still guide towards a second half margin being lower than the second half last year. Finally, if you could comment on the FX impact from hedging for next year, because we saw quite a big negative impact, especially in Q3 at the top line, but probably protected for this year, margin-wise.

I'll now growing mid to high single digit.

And second the Chinese tourist part of their purchases is improving a lot, but still a double digit decline. So that's around where we get in terms of Chinese.

Speaker #5: Thank you.

You ask about what makes you.

Speaker #1: Thank you, Antoine. On your question regarding the Chinese cluster, what we are seeing is that we're getting very close to stabilization. So, we are low single-digit negative but improving a lot on the old cluster.

Confident when it comes to client and science I think it's a it will be different between our between the businesses, but overall, what we see is whenever we are bringing.

Speaker #1: And this is done through two things. First, Chinese locals are now growing mid to high single digits, and second, the Chinese tourist part of the purchases is improving a lot, but still experiencing a double-digit decline.

And initiative.

An innovation or a new retail disruption initiative. It creates immediately a bold and interest and excitement and consumer happens very quickly.

So this is very interesting we could also comment on the feedbacks of the shoes, but that is still to be materialized next year, but there are many things I mean civil law is doing is growing twice the market. So there are many things that are that put us in confidence with our with what.

Speaker #1: So that's around where we get in terms of Chinese. You ask about what makes you confident when it comes to client and signs. I think it will be different between the businesses, but overall what we see is whenever we are bringing an initiative or an innovation or a new retail disruption initiative, it creates immediately a bond, an interest, an excitement, and consumers respond very quickly.

We are doing in the decision we've been a we've been taken.

On and we've asked just your boss.

Improved.

In line with the average little bit more I would say.

We still have a return that is a bit above.

Love is rich NGL a bit below that both are very close to the average and we've been seeing improvement in deal in all key nationalities, and and really great progress.

Speaker #1: So this is very interesting. We could also comment on the feedback of the shows, but that is still to be materialized next year. But there are many things, I mean, Sephora is doing is growing twice the market, so there are many things that put us in confidence with what we're doing and the decisions we've made.

The attitude towards cost, maybe I need to remind everyone that the priority for us is to invest behind this our ability of our brands.

Behind a he third behind the execution game quality because this is what matters.

Speaker #1: On LV versus Dior, both have improved in line with the average, a bit more, I would say. We still have Vuitton that is a bit above average, and Dior a bit below, but both are very close to the average.

And often in downward cycles, some people tend to cut investments so that they can protect margin. It can work on the short term, it's probably not the highest core for the long term and sustainable performance. So far this is very clear in this cycle.

Speaker #1: And we've been seeing improvement in Dior in all key nationalities, and really great progress. The attitude towards cost—maybe I need to remind everyone that the priority for us is to invest behind the desirability of our brands, behind retail, behind execution, behind quality—because this is what matters.

Our downs, we need to continue to make sure that we invest the heightened amount of focus and lanier behind the brands.

No, it's not exclusive on being efficient.

Meaning that in everything we do we need to make sure that whatever we spend goes to the customer and the clients that don't know Indian cars that we always find a way to be more efficient to do it but that's the overall philosophy and there's no reason that that is changing.

Speaker #1: And often in downward cycles, some people tend to cut investments so that they can protect margins. It can work in the short term, but it’s probably not the right call for the long term and sustainable performance.

So if I go straight to and bridge, which is your question on the mounting each tool.

Speaker #1: So for us, it's very clear in the cycle, ups or downs, we need to continue to make sure that we invest the right amount of focus and money behind the brands.

Obviously mountain age two we will discuss in detail in January when we have closed the books.

Bear in mind that even if we've seen a gradual improvement we still have pressure on top line, because topline remains negative versus previous year.

Speaker #1: Now, it's not exclusive from being efficient. This means that in everything we do, we need to make sure that whatever we spend goes to the customer and the client, that there are no hidden costs, and that we always find a way to be more efficient in doing it. That's the overall philosophy, and there's no reason for this to change.

So dish is continuing to have some pressure and de leverage on gross margin.

We are very much discipline on the Costa you we discussed in each one of the overall Opex development and we continue to be very mindful in the cost, but it will not be to an extent that it really compensate the deleverage of gross margin as long as grocery is negative so in order to stabilize.

Speaker #1: So if I go straight to and bridge with your question on the margin H2, obviously margin H2 we will discuss in detail in January, when we have closed the books.

And grow the margin they will need to be back to a growth cycle.

Speaker #1: Bear in mind that even if we've seen gradual improvement, we still have pressure from the top line because the top line remains negative versus the previous year.

On the impact of ethics next year. He was so very far maybe you comment on it too.

Speaker #1: So this is continuing to have some pressure and deliverage on gross margin. We are very much disciplined on the cost. We discussed in H1 the overall OPEX development, and we continue to be very mindful of the cost.

However.

On the top line, what we said Q4, we'd be probably stronger in term of a negative FX impact than Q3.

When it comes to margin given the way the evolution of the exchange rates are going we will have a higher impact Bush and translation and transactional. However, we will also benefit from hedging gain that we didn't have in each one so if we look at it net net.

Speaker #1: But it will not be to an extent that it fully compensates the delivery of gross margin as long as growth is negative. So, in order to stabilize and grow the margin, there will need to be a return to growth cycle.

Speaker #1: On the impact of ethics, next year seems very far. Maybe a comment on H2? However, on the top line, what we see is that Q4 will probably be stronger in terms of negative ethics impact than Q3.

Yet, we probably will have a slightly higher impact from FX.

For each.

Yeah.

The next question is from Al one around Borg hatred D. C. Please go ahead.

Yeah, Hi, good evening and congratulations to the team on such a physical improvement three questions as well please.

Speaker #1: When it comes to margin, given the way the evolution of the exchange rates are going, we will have a higher impact both in translation and in transactional.

Quantify the Chinese psychology right now.

Super level, you talked about an underlying improvement beyond the base effect.

Speaker #1: However, we will also benefit from an edging gain that we didn't have in H1. So, if we look at it net-net, we probably will have a slightly higher impact from ethics for H2.

And if at times, because I happened to be in China. This week I'm wondering if beyond Lv, which is everyone is talking about here what other assets are picking up meaningfully in this market.

Secondly, can you talk about the performance of Tiffany in Q3, and maybe give US an update on where you are in terms of the store revamped.

Speaker #3: The next question is from Erwan Aramburg, HSBC. Please go ahead.

The percentage of stores that have gone to the new.

Speaker #5: Yeah, hi, good evening, Cecile and Rodolphe. Congratulations to the team on such a visible improvement. Three questions as well, please. Can you qualify the Chinese psychology right now at the consumer level?

Contract and any comment on potential pricing that you might take them too.

A consideration for both differently given the price of gold right now and then thirdly, maybe.

Speaker #5: You talked about an underlying improvement beyond the base effect. I'm a bit biased because I happen to be in China this week. I'm wondering if beyond LV, which everyone is talking about here, what other assets are picking up meaningfully in this market?

Help us understand the path for Joe I understand mens collection is coming in December women's probably late mid or late January or what are the big Hum.

[laughter] to expect.

Over the next few quarters to accompany them.

Speaker #5: Secondly, can you talk about the performance of Tiffany in Q3 and maybe give us an update on where you are in terms of the store revamp, the percentage of stores that have gone to the new concept, and any comment on potential pricing that you might take into consideration for both Tiffany and Bulgari given the price of gold right now?

The pick up of that front. Thank you.

Thank you Antoine on Chinese psychology.

And then from I'm fully competent and qualify to look at a two two to discuss and analyze Chinese crazy what I can say is that and and and you probably noticed is that the older Macquarie has not changed fundamentally in China. We should have done real estate a market, which is complex we still have a.

Speaker #5: And then thirdly, maybe help us understand the path for Dior. The men’s collection is coming in December, and the women’s collection is probably expected in mid or late January.

High unemployment so it will we consider it will it's still going to take time until we have a rebound.

Speaker #5: What are the big rendezvous to expect over the next few quarters to accompany the pickup of that brand? Thank you.

On China as well however in terms of performance you mention of it all and it's true that we have been having very steep.

Speaker #1: Thank you, Erwan. On Chinese psychology, I'm not sure I'm fully competent and qualified to discuss and analyze Chinese psychology. What I can say is that, and you probably noticed, is that overall the macro has not changed fundamentally in China. We still have the real estate market, which is complex, we still have high unemployment, so we will consider it is still going to take time until we have a rebound on China as a whole.

Steep improvement for a veto do we is it is a one a very noticeable action that we've been a we've been taking and that is in kantar success, because if you look at we.

It's really a mix of different things first you come from the external and then you see this big saves US a lot of fun and a lot of excitement are of that of passive people wants to get the picture and even all our neighbors are very happy that our it's driving so much traffic.

Speaker #1: However, in terms of performance, you mentioned Vuitton, and it's true that we have been having very steep improvements for Vuitton. The Louis is one very noticeable action that we've been taking, and that has encountered success, because if you look at Louis, it's really a mix of different things.

And then if you enter into the into the ship you changed totally the World and then you are you're thrown into a travel within vetoes, Brian very sophisticated very authentic around travel and DNA of the brand and then you exits for store, which.

<unk> has quite a small surface that is compensating with a lot productivity and especially when it comes to gift, but also luggage is so it's a it's a very interesting place.

Speaker #1: First, you come from the external, and then you see this big shift. There's a lot of fun, a lot of excitement, a lot of traffic. People want to get their picture, and even all our neighbors are very happy that it's driving so much traffic.

The thing is it's not that we are not going to do 400 ships, but they will be here and there in cities and and where there is a hurdle that we can get also on the brand and anti figg there will be some opportunities next will be our Korea see were very different.

Speaker #1: Then, if you enter into the ship, you change totally the world, and then you're thrown into a travel within Vuitton's brand—very sophisticated, very authentic, around travel and the DNA of the brand.

Very very interesting one to us to wait for and to get to to get to.

Speaker #1: And then you exit through a store, which has quite a small surface, but it's compensating with a lot of productivity, especially when it comes to gifts, but also luggage.

And then that all user business progressed in China. So it's not only Vito just meant a significant improvement also with China locally.

Speaker #1: So it's a very interesting place. The thing is, it's not that we are not going to do 400 ships, but there will be opportunities here and there, in cities and where there is a halo that we can leverage both for the brand and for traffic.

We have also a bit.

A bit off their phone lines homes before there was some also selling a probably smaller phasing topic, but in China for via Soapy, because we will also still king for the Middleton 50 also that a lot of things that were happening.

Speaker #1: Next, we'll be Korea-Seoul, very different, but probably a very interesting one to wait for and to get a ticket to. Other than that, all the other businesses have progressed in China, so it's not only Vuitton; Dior has made a significant improvement also with China locally.

That make us think that we are having wix ignored that whenever we are able to connect we are creating excitement and people are responding. So it's very encouraging once again, even if the macro environment has not changed in Q3.

On the performance of Tiffany there was a good quarter with an acceleration in the U S, which is a very nice because it's a big mix.

Speaker #1: We have also seen better performance from Sephora. There was some selling, and it is probably more of a fading topic, but in China for VSOP, we were also stocking for the Mid-Autumn Festival. So, there are a lot of things that were happening that make us think we are receiving weak signals. Whenever we are able to connect, we are creating excitement, and people are responding.

Tiffany activity in.

In terms of the transformation agenda, we continue to progress on acorns are now around 60% of fine jewelry growing double digit. So we continue to push on that there was also the launch of our collection wings indulge inspired from Schlumberger.

Speaker #1: So it's very encouraging once again, even if the macro environment has not changed in Q3. On the performance of Tiffany, there was a good quarter with an acceleration in the U.S., which is very nice because it's a big mix of Tiffany activity.

Starting very well so it's really around cost lunch hip and with with an average price that is higher than the rest of the corrections there.

And we still have the legacy a bit less than 30%, but down high single to low double digit.

So that's for the product so we're very happy with the progress and a continuation understand network. We have now as a whole dolf mentioned it we have now innovated around 30% of the network all the new stores are doing much better than the legacy stores. So again.

Speaker #1: In terms of the transformation agenda, we continue to progress on icons, and now around 60% of fine jewelry is growing in double digits, so we continue to push on that.

Speaker #1: There was also the launch of a collection, "Wings and Birds," inspired by Schlumberger, that is starting very well. So it's really around craftsmanship and with an average price that is higher than the rest of the collections.

Again, it's a tribute to the fact that we've met the high decision we continue to do it progressively because its also very costly.

But on top line, we are very confident that Tianjin <unk> easily and backing our acceleration of growth.

Speaker #1: Then we still have the legacy, a bit less than 30%, but down high single to low double digits. So that's for the products, and we're very happy with the progress and the continuation.

And given that that started just last time, we talked is also having a very good start.

Speaker #1: On the store network, we have now, as Rodolphe mentioned it, renovated around 30% of the network. All the new stores are doing much better than the legacy stores. So again, it's a tribute to the fact that we've made the right decision.

On your calendar and big on the views I think we had a a few important Han reviews, we do show booths men and women. So as you mentioned the main collection will start to hit the stores in January then it will be gradual with.

Speaker #1: We continue to do it progressively because it's also very costly. But on the top line, we are very confident that the agenda is really embarking on the acceleration of growth.

Some capsules for women, but will not be enough to want to do the womens collection will be more installed towards the Q2 than Q1.

Speaker #1: And Ginza, which started just last time we talked, is also having a very good start. On the Dior calendar and big rendezvous, I think we had a few important rendezvous with the show, both men and women.

Then if you have seen we have not waited for that there is a very nice Lydia campaign that just started to rejuvenate the video and that with our commercial effort that we did.

Has led our lithia to find its natural floor and we are very optimistic, but oh, he igniting of the growth of the of the video and in addition, just to roll continues to perform very well we've launched a different format. So it's also now.

Speaker #1: So, as you mentioned, the main collection will start to hit the stores in January. Then it will be gradual, with some capsules for women, but probably more towards the women's collection will be more installed towards Q2 than Q1.

Now a material part of the line when it comes to our tobacco Solgel. So overall, we are pretty happy and boost on the signal, but also on action.

Speaker #1: Then, if you think we have not waited for that, there is a very nice Lady Dior campaign that just started to rejuvenate the Lady Dior.

And we've open house of New York in the house of the Valeant says of adult men Chan and start the start is very good.

Speaker #1: And that, with a commercial effort that we did, has led Lady Dior to find its natural flow, and we are very optimistic about the re-igniting of the growth of the Lady Dior.

The next question is from Thomas <unk> of Citi. Please go ahead.

Osama is to fill in there all of those thanks for taking my questions.

Speaker #1: And in addition, Dior Toujours continues to perform very well. We've launched different formats, so it's also now a material part of the line when it comes to bags for Dior.

I have three please.

The first one on on Asia ex Japan.

Turning positive at plus two.

So China was also positive can you comment perhaps on the Golden week holiday, which ended the middle of last week.

Speaker #1: So overall, we are pretty happy, both with the signals and with the actions. We've opened House of New York and House of Beverly Hills, as Rodolphe mentioned, and the start is very good.

We saw some very strong the government data in categories like jewelry and beauty did you see an acceleration during golden week relative to your China performance.

In Q3 that that encourages you.

Speaker #3: The next question is from Thomas Chauvet, City. Please go ahead.

Secondly on Japan.

Japan, which was the region.

Speaker #5: Bonsoir, Cécile and Rodolphe, thanks for taking my questions. I have three. The first one is on Asia ex-Japan, turning positive at +2. I assume China was also positive.

Mistaken thing the biggest sequential improvement on a year on year basis, but also on the two year stack basis, I think more importantly.

What was the magnitude of decline you saw in Q3.

Local Japanese spend versus the.

Speaker #5: Can you comment, perhaps, on the Golden Week holiday, which ended the middle of last week? We saw some very strong government data and categories like jewelry and beauty.

Tourist spending declined from from Chinese and Koreans, notably.

And finally on the U S.

Can you comment on.

Speaker #5: Did you see an acceleration during Golden Week relative to your China performance in Q3 that encourages you? Secondly, on Japan, which was the region, if I'm not mistaken, seeing the biggest sequential improvement on your basis, but also on a two-year stack basis, I think more importantly, what was the magnitude of decline you saw in Q3 in local Japanese spend versus the tourist spending decline from Chinese and Koreans, notably?

The division that was the bulk of the improvement and more generally your assessment of the of the health of the U S consumer driven.

Whilst the effects, but also weakening labor market did you see some pull forward of demand over the summer either wholesale or resell in anticipation of tariffs and price increases I think called out mentioned during this presentation that champagne had a bit of a tailwind with higher understood correctly was it.

Advanced shipments are there any other division, where you saw that phenomenon.

That for.

Perhaps a bit of an improvement in the U S. Thank you.

Speaker #5: And finally, on the U.S., can you comment on the division that drove the bulk of the improvement and, more generally, your assessment of the health of the U.S. consumer given wealth effects but also weakening labor markets?

Thank you Tommaso if we look versus last year in terms of performance. If you take the if we take fashion and is our goods are minus 2% and and we broke it break it down minus 3% negative comes from Asia. It's overall.

Speaker #5: Did you see some pull forward of demand over the summer, either at wholesale or retail, in anticipation of tariffs and price increases? I think Rodolphe mentioned during his presentation that Champagne had a bit of a tailwind, if I understood correctly.

One point from SASSA in Israel.

That improved mentality, but still declining.

Another point is from grant that Chinese that out now.

Speaker #5: Was it advanced shipments? Was there any other division where you saw that phenomenon that both perhaps a bit of an improvement in the U.S.?

Much smaller than southeast Asia, but declining more and then mainlanders, obviously, a one point.

Speaker #5: Thank you.

Speaker #1: Thank you, Thomas. So if we look versus last year in terms of performance, if we take fashion and leather goods, that's down 2%. And if we break it down, the negative contribution of minus 3% comes from Asia, with an overall impact of one point from Southern Asia.

A bit less actually and this is what our dimension, meaning it's now the cluster is now a single digit negative with mainland China, a mid to high single positive sorry.

And Oh sure still double digit negative.

And then you have one point positive mainly coming from Americans that are slightly up your bands are not moving so much and it's a nice hot and then on the rash you'll have Japanese slightly down that is offset by the rest of the world that is slightly up the Japanese are improving.

Speaker #1: That improved materially but still declining. Another point is from Greater Chinese, data much smaller than Southeast Asia, but declining more. And then mainlanders, obviously, one point.

Quarter on quarter. So that's.

Speaker #1: A bit less, actually, and this is what I mentioned, meaning it's now the cluster is now single-digit negative, with mainland China in mid to high single positive, sorry.

The overall year on year performance when it comes to our nationalities.

U S. We saw an acceleration is an anticipation of ties or not there might be as you said in some case in the in the stocking of the distribution of Champagne, but we also saw some real improvement in Champaign, which is not what we've seen.

Speaker #1: And offshore is still double-digit negative. Then you have one point positive, mainly coming from Americans that are slightly up. Europeans are not moving so much, and it's natural.

So overall I'm.

Speaker #1: And then, on the rest, you have Japanese slightly down, that is offset by the rest of the world that is slightly up. But the Japanese are improving quarter on quarter.

I'm not sure tariff is the main explanation of the progress that we've we've been seeing in the U S.

Speaker #1: So that's the overall year-on-year performance when it comes to nationalities. In the U.S., we saw an acceleration; is there an anticipation of tariffs or not? There might be, as you said, in some cases in the stocking of the distribution of Champagne, but we also saw some real improvement in Champagne.

The next question is from Eduardo Van that Morgan Stanley. Please go ahead.

Yeah. Good afternoon, good evening, guys, so congratulation for the.

The strong performance in a difficult environment. So just to follow up on on especially leather goods. So you have three important Brian It's Joe I'll send you sell it in February.

We have appointed a new creative director this year and as Rob just mentioned.

Speaker #1: Which is not what we see in Cognac. So overall, I'm not sure tariff is the main explanation for the progress that we've been seeing in the U.S.

He was announced today.

So all three are very well regarded by fashion experts in terms of did you create your director's so I'm not going to ask you to give us to give any figures, but how much of a commercial impact could it have on the fashion and luxury leather goods Division next year.

Speaker #3: The next question is from Edouard Aubin, Morgan Stanley. Please go ahead.

And would it be fair to say that you would be really significantly disappointed if they spend a ton of it didn't.

Speaker #5: Yeah, good afternoon, good evening, guys. So congratulations on the strong performance in a difficult environment. So just to follow up on fashion leather goods, you have three important brands: Dior, Céline, and Fendi.

The decrease versus a decrease you are we are expecting for 25. So that's question number one.

Number two on the jewelry and watch and jewelry Division. So you reported a plus two at constant effects I guess, it's fair to say that the watch brands remain negative.

Speaker #5: Which have appointed a new creative director this year? And as Rodolphe mentioned, Fendi was announced today. So all three are very well regarded by fashion experts in terms of the new creative director.

And therefore should we understand that both Tiffany and Bill Gary are both in line to slightly above the 2% would it be fair to say that and more specifically if you can comment on regarding jewelry brands Bulgarian Tiffany on the performance in greater China in Q3 versus Q2.

Speaker #5: So, I'm not going to ask you to give any figures, but kind of how much of a commercial impact could it have on the Fashion and Leather Goods division next year?

Speaker #5: And would it be fair to say that you would be significantly disappointed if this brand turnover didn't increase versus a decrease we are expecting for 2025?

Then last question is on the group's cope so you have over 80 brands today.

Last time I counted versus about 2025 when the.

Speaker #5: So that's question number one. Question number two on the jewelry, watch, and jewelry division. So you reported a plus 2% at constant effects. I guess it's fair to say that the watch brands remain negative.

Group was initially founded.

I know you don't have a crystal ball and it's going to depend obviously on the opportunities you might tell me you might not have next year, but so silly is your best guess that the group will have likely more or less brands.

Speaker #5: And therefore, should we understand that both Tiffany and Bulgari are both in line to slightly above 2%? Would it be fair to say that?

Yeah. Thank you.

Thank you.

Speaker #5: And more specifically, if you can comment on the jewelry brands, Bulgari and Tiffany, on the performance in Greater China in Q3 versus Q2. And then the last question is on the group scope.

So your question on fashion in leather goods and the impact of.

That we will have and the confidence that we have in term of impact when it come to the renewal of creativity for just sitting in sandy first to us to understand that the timing of each one is very different.

Speaker #5: So you have over 80 brands today, last time I counted, versus about 20 to 25 when the group was initially founded. I know you don't have a crystal ball, and it's going to depend, obviously, on opportunities you might or you might not have.

The first one in terms of product hitting the store are going to be we sitting where we now having the first bags come into the stores and then we will continue with the collection that will be in stores in November.

Speaker #5: Next year, but Cecile, is your best guess that the group will have likely more or less you.

Speaker #1: Thank you, Edouard. For your question on fashion and leather goods and the impact that we will have, as well as the confidence that we have in terms of the renewal of creativity for Dior, Céline, and Fendi.

Second for your we already disclosed that so you have to do timings in mind and then Sandy as you said, we just announced today Oh My God I gave the date of our first collection. So it will take time. So overall the way you need to look at it is really around.

Speaker #1: First, you have to understand that the timing of each one is very different. The first one, in terms of products hitting the store, are going to be with Céline, where we now are having the first bags coming to the stores. Then, we will continue with the collection that will be in stores in November.

And I'm glad you're all else equal shown improvement rather than a big giant.

And defense, but we are very confident with the decision that we made we are very confident because we had a great feedbacks from the different shoes.

So we are now a.

Speaker #1: Second, for Dior, we already discussed that, so you have the timings in mind. And then Fendi, as you said, we just announced today. Maria Grazia gave the date of her first collection.

Making sure that all these will be executed and we'll see when that will materialize.

In term of top line.

On White Changey, yes, you're right the plus 2% is a mix of what she is improving but remaining slightly negative so, yes, Tiffany and belgae outpacing the average of the growth for.

Speaker #1: So, it will take time. Overall, the way you need to look at it is really around gradual and sequential improvement rather than a big giant difference. But we are very confident with the decision that we made.

What she's and Giuliani for Q3.

Speaker #1: We are very confident because we had great feedback from the different shows. So we are now making sure that all this will be executed, and we'll see when it will materialize in terms of top line.

In term of the performance in China, it's been a bit different it's been quite an improvement for Tiffany Dunn guys, having softer trend and at the same time duty go he has accelerated in the U S where it still have a good opportunity for growth.

Speaker #1: On why change, yes, you're right. The +2% is a mix of watches improving, but remaining slightly negative. So yes, Tiffany and Bulgari are outpacing the average growth for watches and jewelry for Q3.

It goes from a low base. So we are happy with that.

And then on your question regarding the Goop scooped 80 brands more or less.

I will not comment on that.

Again, most values fleet, we are looking at the portfolio on a continuous basis.

If there is something that all anisette all brand that makes sense for the group to have Intel.

In terms of talent and tunnel brand and would be a good day, then we will look at it even use a hand, there is brenda and I said that we believe for the next cycle will be that are with someone else. Then we will look at it. So there is no dogma on the portfolio. It's a.

Process that is continuous and I have nothing more to report on this quarter here.

The next question is from kind of on my job Barclays. Please go ahead.

Hi, yes, good evening.

For me. Please the first one to come back on the margin of the Division SMT I think you talk about what 26 are needing to see a growth cycle to attend to a margin improvement and so is there do you see a growth of 3% to 4% top line still enough yield to I guess have a flattish margin.

But next year, let's say normal environment. That's the first question and second question can you just couldn't talk about the health of their more entry price additional consumer and not in the U S.

So we're getting a bit stronger at your brands and again back on the U S market I think could be a little bit more inflation coming up in the fourth quarter on the back of the tariffs and adaptation litigation. So how do you see the consumer can be resilient on the back of all of that thank.

Thank you.

Thank you on.

Your question regarding margin.

I think it's fair to say that in order to stub towards deleveraging in gross margin, we will need some growth and I think we've been very consistent in saying that.

So on your question on fashion is a good answer.

Sometimes you know down to a stabilized in 19, yes, we will need a gross to come back.

On U S market prices.

I saw as our brands have concern we we've always said that we would only use very moderate price increase.

If we had to look at inflation tariffs, but that wouldn't be a big driver of the price because again, what counts for us is really around the mix and the value and that the.

First and foremost priority is really to ensure that whenever we increased pies. We have increased the value. So we have increased the quality of inquiries. The functionality. So that's really how we work now probably in the U S. There will be more than a price increase.

In order to compensate for types.

The next question is from Oliver Chen with.

Cowen. Please go ahead.

Hi, Thanks, Congrats fulfilling Rudolph nice to be with you here as we think about U S. In the fourth quarter comparison, what shall we note in terms of getting a bit tougher and then as you look at the U S ahead.

If we had to look at inflation tariffs, but that wouldn't be a big driver of the price, because at the end what comes for us is really around the mix and the value. And that the

Any color on regions or the nature because of the consumer confidence has been volatile and obviously, it's very dynamic here as well and then still on your earlier comment on a negative double digit declines in tourism as it applied to the Chinese cluster, what what do you see ahead for that.

For for and foremost. Uh priority is really to ensure that whenever we increase price, we have increased the value. So we have increased the quality we have increased the functionality, so that's really how we work now. Probably in the US. There will be moderate price increase uh, in order to uh, compensate for uh types.

Of or there are a lot of aspects out of your control or what are you monitoring and then third I think you mentioned the same a few times, but self help for next year.

The next question is from Oliver Chan, TD Cowen. Please go ahead.

Would love your.

Your context on what you mean myself I think it's related to the creative changes and different timing of different stories are different.

Different creative initiatives, Thanks, a lot.

Thank you Oliver.

In term of a basis of comparison I I don't know if you'll recall that last year. So we said if we simplify it's around four points for the group for tougher than it was in Q3, if you want to do a very simple exercise.

It was it's going to be easier in Japan, because we continue to.

To have a basis of converse shoes.

Um, any color on regions, or the nature? Because the the consumer confidence has been volatile. And obviously it's, it's, it's very Dynamic here as well. And then Cecile on your earlier, comment on, on negative double digit, declines and tourism as it applied to the China cluster. What, what do you see ahead? Uh, for that in terms of um, are there a lot of aspects out of your control or what do you monitoring? And then third, I think you mentioned the steam a few times, but self-help for next year. Um,

Last year, when do yen was weak and there was so many tourists.

Our purchasing and making the rules in Japan is going to subside. So we are going to have an easier comp space here.

I would love your context and what you mean by "setting yourself up." I think it's related to the creative changes in different timings of various stories—a different creative initiative. Thanks a lot.

But it's true that U S last year with direction.

Thank you.

There was a kind of rebound with the election that that created a kind of a surge of consumption.

It was quite big and as well you have to remember that last year end of the year was wonderful which created quite a lot of tourism in your love for the festive period and and that situation is not exactly.

Uh in term of uh buses of comparison. I I uh I don't know if you recall but last year so we say if we simplify it's around 4.4 the group 4.0 then it was in Q3 if you want to do a very simple exercise.

The same this year given the strengths of our of your departure.

Then onto undo Chinese are sure. This is the part where it's mostly linked to the basis of comparison.

It was, it's going to be easier in Japan because we continue, uh, to have a basis of conversions. Uh, last year when the Yen was weak and there was so many tourists uh, uh, purchasing and making the rules in Japan is going to subside. So, uh, we are going to have an easier come space here.

And if you want to look at it in a simple way you can make the assumption that last year growth in Japan was mainly.

But it's true that us, uh, last year with the election.

Many tourists it was mainly Chinese so you can reverse engineer it like that.

Two are to look at are the Chinese performance of offshore double digit negative. So it feels like the us food and in effect of the base of comparison from Japan last year.

There was a kind of rebound with the election, uh, that created a kind of surge of consumption and it was quite big. And as well, you have to remember that the dollar last year, at the end of the year, was 104.

Self help is many thing.

Which created quite a lot of tourism in Europe for the 55 period. And that situation is not exactly the same this year given the strength of the euro this year.

So yes, it's around the creative and the new ore, but it's also at horned our retail initiatives.

If you look at the retail initiative under his belt store and I don't talk about did we but all the flagships that we've been opening so far veto it would be a new York, Montana Polyalanine Michaela for season, and some Lasalle Solgel USD two two new house indeed in the U S.

Then on the, on the Chinese offshore, this is the part where it's mostly linked to the basis of comparison. And if you want to, uh, look at it in a simple way, you can make the assumption that last year growth in Japan was mainly, uh, mainly tourists. It was mainly Chinese. So you can reverse engineer it like that uh, to uh,

Tiffany Love the U S.

Ginza that that'll turn as Huntley, you will have a flagship of Louisville Ah Indeed, zarzuela opening at the end of the year. So we continue to really invest and and and and give a priority too.

To look at the Chinese performance of offshore, double-digit negative. So, it's really a reversal and an effect of base comparison from Japan last year.

Reinvent and he can't excitement with the retail as well and that's a that's an ongoing part and then on products you've seen that we had the launch of our the beauty actually veto.

Self-help is many things. Um, so yes, it's about creative renewal, but it's also around, uh,

Again, he created the excitement traffics.

It also was very selective so it's not something that is supposed to be called at any point in time.

retail initiatives. If you look at, uh, the the retail initiative and the retail store, and I don't talk about the we, but all the flagships that we've been opening. So for Vuitton, it would be a New York Mountain for season and some other for you have the 2 2 new house in the, in the US.

But it's at gates.

It gets quite a good a good traction and good start.

And then I mentioned the lead you Jill.

A bit earlier with the campaign of GWA with our commercial focus.

And evolved and it has improved a lot so its not only we shouldn't omni even if it's an important one because it's a it's in many brands and it's a it's a big step we shouldn't look at Kittila and you are now also plenty of innovation.

Terry initiative.

Sephora performance deserve all for a quite a big upon and it's everywhere, it's both traffic and average basket.

For Tiffany, you have, you have Gina that that open recently, you will have a flagship of Lewis in that as well opening at the end of the year. So we continue to really uh, invest and and and, and give uh priority to um, reinvent and recreate excitement with the retail as well. And that's, uh, that's an ongoing, uh, part. And then on products, you've seen that, uh, we had the, the launch of, uh, the beauty at Louis Vuitton. Again, it created the excitement, traffics. Um, it also, uh, was very selective. So, it's not something that is supposed to be core at any point in time, but it it gets, uh, it gets quite a good, uh, a good traction and a good start.

So I think it's a it's really a lot more versatile debt on refocusing on when the creative designer would it be a will be in 18 stores.

Uh, and then I mentioned the leader.

The next question is from Ashley Wallace Bank of America Merrill Lynch. Please go ahead.

Thank you very much to fill and write off I have three questions. Please. The first one is just on soft luxury versus hot luxury when you look at the consumer trends I was wondering if you see any relative shifting appetite for soft luxury versus hard luxury you mentioned to that fashion on leather at seven point improvement.

Coming from traffic volumes do you also see a volume uplift in watches and jewelry or is this acceleration driven by something else, maybe some more pricing considering like goldfish.

A bit earlier with uh the campaign of gwa with commercial Focus um and in for and it's it has improved a lot so it's not only we shouldn't only even if it's an important 1 because it's it's in many Brands and it's it's a big step. We shouldn't only look at creative renewal. There are also plenty Innovation retail initiative, uh, Sephora performance deserve. Also uh, quite a big approved and it's everywhere and it's both traffic and average basket.

The second question is just on perfume and cosmetics.

If you could talk about what drove the small sequential acceleration in this division maybe by region or product category, especially in light of some of the pure play fragrance companies backing a softening outlook in the second half and then my last question is.

It's really a lot more versatile that only focusing on when the the the creative designer will be uh will be ready in stores.

The next question is from Ashley Wallace, Bank of America, Merrill Lynch. Please go ahead.

Just on the kind of self help and easier comps that you've bags on your outlook for next year, but fashion and let that specifically I was wondering if you could help us think about which drivers of growth. You are most excited about for the year overall, if it's price mix of Oems and then actually sorry, if I can sneak one clarification in.

I think there were two questions on Golden week, and maybe I missed the answer if you could maybe just repeat what you said on Golden week. Thank you.

Thank you very much for the fill right off. I have three questions, please. Um, the first one is just on luxury versus hard luxury. When you look at the consumer trends, I was wondering if you see any relative shift in appetite for soft luxury versus hard luxury. You mentioned that fashion and leather seven-point improvement is mainly coming from traffic or volumes. Do you also see volume uplift in watches and jewelry, or is this acceleration driven by something else? Maybe some more pricing.

Please.

Um, the second question is just on perfume and cosmetics.

Yeah, So maybe I start with Golden week overall, it's a it's very a fresh so we don't have the full do full feedback, but it seems that it went according to expectation.

If you could talk about what drove the small sequential acceleration in the vision, maybe by regional product category, especially in light of some of the pure play fragrance companies bagging a softening outlook in the second half.

So that's fallen week under under Middleton Festival regarding wind speed given the structure of the business. It's it's too early to say so will can come on that next time.

On the tragic torii on soft truck showing the average basket doesn't change so much. So we are really looking at traffic and volume when it comes to our to improvement.

And then my last question is, um, just on the kind of self-help and easier comps that you've bagged on your outlook for next year for fashion and leather specifically. I was wondering if you could help us think about which drivers of growth you're most excited about for the year. Overall, if it's price makers or volumes. And then, actually, sorry. If I can sneak in one clarification, I think there were two questions on Golden Week and maybe I'm missing out.

And soft versus hard luxury for me, it's always a complex question, because it's different categories or together with different comparable beaches and dynamics. What we are seeing in our watch and jewelry is as I said you have an improvement in the U S.

So that's why people maybe just repeat what you said on Golden Week. Thank you.

Yeah, so maybe I start with Golden Week. Overall, it's very, uh, fresh, so we don't have the full, uh, the full feedback, but it seems that it went according to expectations.

As you have improvement in in Japan, and in China, and overall, it's a mix of our volume, but it's also a.

So, that's for Golden Week on the Middleton Festival regarding wine and P. Given the structure of the business, it's too early to say, so we can comment on that next time.

The mix effects because as you know we are in the middle of the transformation of Tiffany and so the idea is really to push the icons that are more priced and that's why it's also create a mix effect at the same times and prices very moderate.

On the trajectory of soft luxury, the average basket hasn't changed so much. So we are really looking at traffic and volume when it comes to improvement.

On P&C, we had a some acceleration into Q3 and quite a good performance. It was a very similar in the different categories or whether you take fragrance makeup or skin care.

The difference between the brands soldier outperform on makeup and skincare given our menu innovation I mean holdorf name the name the shoes. So I will not come back on that and then we had a very strong performance on Taiwan Komsomol's amusement like Gallo.

The mezzanine for Cisco, Joel and then very much pylons brand with residual sheet.

And soft versus hard luxury for me, it's always a a complex question because it's different categories, all together with different, uh, comparable bases and Dynamics. What we are seeing in uh watch and jewelry is, as I said, you have an improvement. Uh, in the US you have Improvement uh, in in Japan and in China and overall. It's a mix of, uh, volume. But it's also uh, uh, uh uh, uh, uh, a mix effect because as you know, we are in the middle of the transformation of uh tifani. And so uh, the idea is really to push the icons that are more priced and that's why it's also creates a

But overall as a division it was a quite a comparable between the different categories.

A mix effect, uh, at the same time, and price is very moderate.

India called Nextgen. So first we're gonna do the Q4.

On PNC, we had some acceleration in Q3 and quite a good performance. It was.

That we will discuss in generally and I think the macro being still very challenging and volatile I prefer not to not to talk at this stage, but a bit next year, but we'll have ample time to to discuss hit.

Uh, very similar in the different categories. So whether you take fragrance, makeup, or skincare,

What we know is that the base of comps will be easier and I mean, you've seen our the performance of the share. So it's a it's quite natural.

To have that in mind, I'm quite mechanical but other than that because it's not what interest as the most what interest rate you really to capitalize on the fact that within the improvement local clientele lost hung and voice is very important because each square the quality of the girls flies and.

Uh, but the difference between the brands, so, uh, outperform on makeup and skin care, given many innovations. I mean, Rodolphe named a few, so I will not come back on that. And then we had a very strong performance in fragrance from some other amazing brands like Maison Francis Kurkdjian and with G. But overall, as a division, it was quite comparable between the different categories.

It's where we can really capitalize on our assets in order to build blond blended eurobeach and continue to make sure that due to local consumer is bonding with the brands. So we'll continue to do that and we'll do that consistently for next year.

I think we have another two questions are on the list and I suggest we take the last two questions and then we can get a robot.

Easier comp next year. So first, we are going to do the Q4, uh, that we will discuss in January. And I think the macro being still very challenging and volatile, I prefer not to, uh, not to talk at this stage, but next year. But we'll have ample time to, uh, to discuss it. What we know is that the base of comps will be here and, I mean, you've seen, uh, the performance of this year. So it's, uh, it's quite natural to.

Thank you.

The next question is from apparel the Dania RBC. Please go ahead.

Thank you good evening, everybody. So three quick ones from me. Please answer Forum I believe earlier in the year that was comments around the competitive environment, particularly online.

Pricing competition from Amazon beauty in particular could you provide an update as to how that's evolving.

Perhaps.

For us to come to that given the positive commentary you've made in relation to traffic volumes.

And continue to make sure that uh the the local consumer is bonding with the brands. So we'll continue to do that. Uh and and and we'll do that consistently for next year.

Business.

The second is on delivery in Shanghai.

I'm not sure if you can share this but could you perhaps help us quantify what the contribution to the minus two <unk> number in Q3 was or perhaps to the mid to high single digit positive mainland Chinese organic for <unk>.

I think we have another two questions on the list. I suggest we take these last two questions, and then we can wrap up. Thank you.

The next question is from a period of Dia RBC. Please go ahead.

From the Lilly given the high traffic is the better than expected performance of that initiative.

Finally, just following up on the M&A question, just wondering if you're able to provide any comment on Georgia Armani.

Uh huh.

Anything you can say on that in relation to the provisions that were put in as well.

H being specifically mentioned thank you.

Thank you unsafe for all our U S.

Thank you. Good evening, everybody. So, three quick questions for me, please. Um, also, Forum, um, I believe earlier in the year, um, there were comments around the competitive environment, particularly online, uh, and the pricing, um, competition from Amazon Beauty in particular. Could you provide an update as to how, um, that is evolving, and perhaps what Sephora has done to counter that, given the positive commentary you've made in relation to traffic and volumes, uh, in that business?

So for our U S performance was very strong you have to keep in mind that.

Sephora is everything Amazon isn't it because sephora the mother of Sephora easily its a destination.

It's where you can fun brands one over to only answer for any say you a beauty consultants.

Were you ever brand people, they don't say I will buy some in Iceland that there was a good to see for so so it's a very different model.

The second is on the Louis in Shanghai. I'm not sure if you can share this, but could you perhaps help us quantify what the contribution to the minus to SNL? G number is 23, or perhaps to the mid to item or digit. Positive mainline Chinese organic for snog was from the Louis, given the high traffic and the rest of the expected performance of that initiative. Finally, just following up on the M&A question, I was just wondering if you're able to provide any comment on Giorgio Armani.

And again, we have accused freeware and also in the U S. A booth do traffic endeavor and focus get have increased and we have been launching hard in the U S and the UK and in Canada, and it's been a record breaking launch so so today for.

Uh, and whether you know, anything, you could say on that in relation to, uh, the provisions that were put in his will and LVMH being, uh, specifically mentioned. Thank you.

Thank you, pal. Uh, on FIFA, uh, us.

So for our U.S. performance, it was very strong. You have to keep in mind that.

It's it's it's very simplistic to come.

Sephora is everything. Amazon is not, because Sephora—the model of Sephora—is really a destination.

Compares to Amazon because we are very different we.

We are very different and we are over performing in all our store, where it's all about stores and destination.

It's where you can find Brands 1 over to only at Sephora.

And it's where you have beauty consultants.

Yes.

Undue unduly we so.

Uh, where you have a brand, people don't say, "I will buy some Amazon," but they will say, "I go to Sephora."

Do we contribution.

So, it's a very different model.

I think if you look at the numbers, it's not a big part of the number what is interesting and what is very important and then we.

Is that you have so many vita it kids hydro, but also it's it's a space, where we have very small store and much smaller than the one that you can have especially the one that we understand he'll tell you compensate with productivity and what is quite a I don't know if it's.

And again, uh, we have a Q3 where and also, in the US, uh, both, uh, do traffic and the average workers get have increased. And we've been launching hard in the US in the UK, and in Canada, and it's been a record-breaking launch.

So, today, uh, for us, it's very simplistic to compare us to Amazon because we are very different.

Anecdotally Colbert is very interesting is that it's now the first one of the first store when it comes to luggage is I'm looking at orders so that they don't said something on <unk>.

We are all very different, and we are outperforming in all our stores. It's all about stores and destinations for us.

On the, on the... we, uh, so...

And so when you think of it.

They came out underneath them looking at them the travel.

Our relationship with the brand and then you buy a luggage I think it tells you something very interesting about.

But the way you want to activated beyond transaction and bond with our with the consumer.

Then on our money.

We will value and now obviously to have been named as our partners.

Other than that I have no comment to make.

And the last question is from Crisco CLSA. Please go ahead.

The, the the we contribution. Um, I think if you look at the numbers, it's not uh the biggest part of the number, what is interesting? And what is very important in the Lewis? Is that, uh, you have so many visitor, it creates a halt but also it's, it's a space where with a very small, uh, store a much smaller than the 1 that you can have. Especially the 1 that we recently open, you compensate with productivity and what is quite. Uh, I don't know if it's anecdotal but it's very interesting is that it's now uh the the the first 1 of the first store when it comes to luggages. Uh I'm looking at row so that I don't say something wrong. And so when you think about

Okay, Hi, Good day subsidiary Rudolph Congrats on the originally with thousands of thanks for taking my questions I have two so firstly is regarding the Chinese demand pick up.

They came out from the museum, looking at, um, the travel, um, relationship with the brand, and then you buy a luggage. I think it tells you something very interesting about, um,

One quick question is it mainly coming from existing consumers coming back or is it more contributed by the new highly high quality spenders are calling and so this is the breakdown by you know consumer profile and the second question is regarding does Tiffany's our improvement in China. So could you. Please.

But, uh, the way you want to, uh, activate Beyond transaction and bond with the consumer.

Then on Harmony.

We were very honored, obviously, to have been named as partners.

Other than that, I have no comment to make.

To share more with us about which press segmentation hospitals seeing more outstanding versus others. If there's any specific signals on that and maybe one quick follow up is regarding defend universal spoke Gary Tiffany has been showing stronger trends versus Bulgaria, so basically what matrix, if comparing that to labor.

Chris, go ahead.

Do you see on Tiffany as a stronger as a traffic commercial or the ticket size on Tiffany has been growing stronger than bulgari. Thank you.

Okay, hi. Good day. Uh, congrats on the recent results, and thanks for taking my questions. I have two. So firstly, it's regarding the Chinese demand pickup.

Thank you on the Chinese acceleration overall, it's a when we say it's volume and traffic SaaS no destocking of the German so what we are seeing is nuts.

More contributed by the new, highly high-quality spenders are coming in. So this is a breakdown by, you know, consumer profile.

<unk> is not changing the peer median is fairly consistent on again, the average basket as not a change from one quarter to Deirdre.

And it's fairly consistent.

On Tiffany versus putting Gavin I think he is very difficult to compare.

Brands that have a very different story and maturity. Fi example, if you look at the brands are whether it's in China or whether it's in the U S. They don't have the same.

And the second question is regarding the, uh, Tiffany's, uh, improvement in China. So, uh, could you please share more with us about, uh, which price segmentation has been seen more outstanding versus others if there's any specific, you know, signals on that? And maybe one quick follow-up is regarding, uh, Tiffany versus Bvlgari. Tiffany has been showing stronger trends versus Bvlgari. So, basically, what metrics comparing the two labels do you see on Tiffany as a stronger? Is it traffic conversion or the ticket size on Tiffany has been growing stronger than Bvlgari? Thank you.

His story that didn't start at the same time <unk> is very much a.

Thank you on the Chinese acceleration overall. It's when we say its volume and traffic, there's no distortion of the pyramid.

A big part of the mix U S. V go and he was begun in China and is now growing quite heavily with a lot of progress.

So what we are seeing is not uh is not changing the the the pyramid then is fairly consistent again. The average basket has not uh changed uh from 1 quarter to the other.

In the U S Congress smaller base, so your part D b.

Uh, and it's fairly consistent.

Between where you are in terms of maturity portfolio is a bit different so I'm always.

On, uh, Tiffany, uh, versus Bvlgari. I think it is very difficult to compare.

Not very it is to compare things that are not fully comparable what we can say is that do brands are improving it stood at Boone County is a bit softer trend in China.

With Chinese but overall a good guy is improving in Japan, it's improving in the U S or is that.

Brands that have a very different, uh, story and uh, maturity. For example, if you look at the brands, uh, whether it's in China or whether it's in the US, they don't have the same uh, history. They didn't start at the same time. Tiffany is is very much.

Not really or something to to conclude on that.

It's just a game of basis of comparison and and impact from a from a toy Japan last year.

Thank you.

Thank you. Thank you very much.

Too soon.

Have a great evening and as usual we all are fully at your disposal to a 12 follow ups and I'll go into more detail if need.

I have a great evening, thank you very much.

A big part of the mix is US Bvlgari was bigger in China and is now, uh, going, uh, quite heavily with a lot of progress, uh, in the US from a smaller base. So your paradigm between where you are in terms of maturity portfolio is a bit different. So I'm always, uh, not very at ease to compare things that are not fully comparable. What we can say is that the brands are improving. It's true that Bvlgari has a bit softer trend, uh, in China, uh, with Chinese. But overall, uh, Bvlgari is improving in Japan. It's improving in the US, so that there are not really, um, something to, uh, conclude of that. Uh, it's just a, a, a game of basis of comparison. And, uh, and impact from.

From tourist, Japan, last year.

Thank you.

Thank you.

Thank you very much. Thank you soon. And have a have a great evening. And as usual, we are, uh, fully at your disposal to, uh, to our follow-ups and, uh, go into more detail if uh, need be have a great evening. Thank you very much.