LVMH Moët Hennessy - Louis Vuitton

Ladies and gentlemen, good afternoon, and welcome to today's conference call. I'm Robert Fouzan, Director of Financial Communications at LVMH, and with me is Cécile Gabenis, our Chief Financial Officer. Cécile will start by taking you through the key highlights of the first quarter of 2025. I will then comment on performance by business groups, after which Cécile will conclude, and then we'll be happy to take your questions. As a reminder, certain information to be discussed on today's call is forward-looking and subject to important risks and certainties that could call actual results to defer materially. For these, I refer you to the safe harbor statement included in our press release and on slide two of our presentation. Turning now to our announcement, our release was issued a short while ago in both French and English and is available on the LVH website LVMH.com, as are the slides for today's call. Let's now move on to today's topic, our first quarter figures, passing on to Cecile.

Thank you, Rodolphe. Good afternoon, welcome, and thank you all for attending this call. Starting with slide three, let me give you a few broad comments on the first three months of the year, where LVMH continues to demonstrate resilience. Let me share a few highlights, first on Chinese demand. On the domestic market, trends were consistent with the end of last year. The main swing factor year-to-date is Chinese demand in Japan, as you can imagine. It remains strong in absolute terms, but recycled last year's sharp increase, and therefore no longer contributes to growth in a percentage point. Second comment, despite the context of uncertainty preceding tariffs announcement, American demand for fashion and leather goods and watches and jewelry remained well-oriented and accelerated modestly compared to the second half of last year. Sephora, on the other hand, faced very challenging comps after growing double-digit last year, and this explains the sequential deceleration of the U.S. market at group level. Third comment is that Europe continues to grow. I will let Rodolphe comment on the different activities. Maybe as a broader comment, we continue to witness across our brands the merits of innovation and creativity. When new products are exciting and functional, they perform very well. Moving now to slide four, where you have the revenue bridge for the first three months of 2025. Group revenues reached 20.3 billion euros, down 2 percent on a reported basis and 3 percent inorganic, including a positive 1 percent currency impact. Slide five details the geographical breakdown of revenues in euros. which, as you can see, has remained broadly stable. However, versus Q1 last year, Asia fell three points in the mix, while United States, France, and other markets all rose one point. This is the reflection of Q1 regional performance that you have on the next slide. Starting with U.S., moderate deceleration at minus 3 percent, despite, as I was mentioning, a good performance of fashion and leather goods and watches and jewelry. Japan is slightly negative at minus 1%, recycling last year's exceptional growth of 32%. Asia at minus 11% is reflecting a continued soft demand, which is consistent with the end of last year. And finally, Europe continuing to display positive dynamic with a 2% growth. Rodolphe will now comment the performance of our activities in more detail.

Thank you, Cecile. And we'll start, as usual, with wines and spirits. On slide nine, we showed the wines and spirits business group delivered 1.3 billion euros in revenue for the first three months of 2025. This represents a 9% decrease on an organic basis versus the same period last year, and an 8% decrease on a reported basis after taking into account a positive 1% currency effect. Broken down, champagne and wine generated €0.7 billion in revenue over the three-month period, down 1% on both organic and reported basis. Cognac and spirits recorded €0.6 billion in revenue, down 17% on an organic basis and 15% on a reported basis after taking into account a positive 2% currency impact. On slide 10, we highlighted some of the elements which shaped the quarters with two different situations. Champagne and wines proved resilience in the first three months of 2025. We saw modest decline in volume in champagne, partly due to unfavorable phasing effects linked to distributors in Europe and to the timing of price increases in Japan. However, champagne benefited from positive price mix effect, and the outcome was broadly flattish trends. The start of the year was marked by the return of Moët et Chandon as the official champagne of Formula One, once again celebrating every victory on the podium with champagne, as well as the global launch of a limited edition Moët et Chandon collection in collaboration with Syed Williams. In Cognac and Spirits, Hennessy's first quarter reflected soft sellouts in the US and China, We replenished inventories at our distributors' level, but kept inventory days unchanged, and selling was as a result consistent with sellout. Given uncertainties around tariffs, we also kept a healthy level of inventories in our local warehouses. These cases have been shipped, but not sold in, and as such did not have any impact on our first quarter revenue. Finally, in spirit, Glenmore Energy welcomed Harrison Ford as the face of its whisky, unveiling a 12-episode series entitled Once Upon a Time in Scotland, and taking us behind the scenes at the distillery, and the Maison also benefited from the success of its triple cask reserve rollout. We're now turning to fashion and leather goods on slide 12. Revenue reached 10.1 billion euros for the first three months of 2025. This represents a 5% decrease on an organic basis, such as the same period last year, and a 4% decrease on the reported basis after taking into account a positive 1% currency impact. Moving on to slide 13, which is the key highlights of the quarter by brand. Louis Vuitton saw the unveiling of a new collaboration with renowned Japanese artist Takashi Murakami, which after a very successful first chapter revisiting the multicolored pattern created in 2003, recently unveiled chapter two featuring the cherry blossom pattern. The Maison also enriched its leather goods offering with the successful launches of the LV Biker and All In, and debuted the latest collections designed by Nicolas Ghesquière and Phile Williams, including a fashion show retracing Louis Vuitton's travel heritage in Paris, next to the iconic Gare du Nord station. Faithful to its rich heritage of innovation and extraordinary craftsmanship, Louis Vuitton unveiled a new venture in beauty called La Beauté Louis Vuitton, and welcomed internationally renowned make-up artist Dame Pat McGrath as Cosmetics Creative Director. The first of these new products will be available this fall. Lastly, Louis Vuitton crafted bespoke trophy trunks for major Grand Prix circuits and was the title partner of the first race of the season in Australia. Christian Dior saw inspiring fashion shows to unveil the new collections designed by Maya Gadziak-Uri as well as the successful start of recent novelties in leather goods, including the Dior Toujours and D-Journey bags, and in high jewelry, the Dior Milly Vantel collection, which drew inspiration from Christian Dior's beloved Milly Laforet gardens. Additionally, in just a few days' time, the Dior Retrospective Exhibition Christian Dior Designer of Dreams will open in South Korea, and to mark the occasion, JOR is renewing its partnership with Eva Women's University, a historic private women's university in Seoul. Now, to mention a few highlights from some of the other Maisons. Loro Pierre Marc continued to see strong momentum in ready-to-wear and leather goods, and unveiled its first ever exhibition at Shanghai's Museum of Art Pudong to celebrate the Maison's 100th anniversary. Likewise, Fendi, which also celebrated 100 years of craftsmanship, hosted a special co-ed runway show designed by Silvia Ventoli Fendi in the brand's Roman headquarters. Céline is embarking on its new creative journey with creative director Michael Ryder to unveil his first collection in the next few months. Loewe announced the appointment of Jack McCullough and Lazaro Hernandez as the house's new creative directors, succeeding JW Anderson after 11 exceptional years, and Givenchy unveiled its first collection by new creative designer Sarah Burton at the historic headquarters located on Avenue Georges V. Finally, Rimovar extended its recrafted service to the U.S., while Berluti welcomed several new brand ambassadors, and celebrated its 130th anniversary. Moving to perfumes and cosmetics on slide 15, revenue reached 2.2 billion euros for the first three months of 2025. This represents a 1% decrease on an organic basis, which after taking into account a positive 1% currency impact resulted in stable revenue on a reported basis. Turning on to slide 16, in perfumes and cosmetics, fragrances continued to outperform for most of our brands. Parfum Christian Dior benefited from the enduring appeal of J'adore, supported by a new eau de parfum with a fresh design for its legendary and for our bottle, and from a new Dior Homme parfum created by Francis Kirkdjian. La collection privée, Dior's high-end fragrance offering, enjoyed excellent growth. and now includes a new unisex perfume called Bois Talisman. Finally, the success of Dior Capture and Prestige Nectar de Rose also enabled Christian Dior to grow in skincare. Strong innovation was on display across the other Maison, with several new scents including Rose Verde by Guerlain, who also had a good performance in makeup with Rouge G, while Givenchy also added scents to both L'Interdit and Gentleman's Society, with Pierre Gasly announced as its new global ambassador, at which Di Parma continued to expand thanks to its emblematic Colonia collection with the release of Colonia Il Profumo and Maison Curzon released a new Curqui Eau de Parfum. In watches and jewelry on site 18, revenue came to 2.5 billion euros in the first three months, stable on an organic basis and up 1% on a reported basis after a positive 1% currency impact. On slide 19, as you can see, our maison made good progress on strategic priorities, starting with jewelry. Tiffany enjoyed excellent growth across all of its iconic lines, Tiffany T, lock, hardware, knot, The quarter was also marked by the third chapter of Tiffany Titan by Pharrell, which features an innovative setting for diamonds, and in high jewelry, by the latest Burl on a Pearl collection, revisiting Jean Schlumberger's iconic Burl on Rock design. In the first quarter, Tiffany made progress on its objective to renovate its store network. Recent openings include a new Taikuli flagship in Chengdu, China. And lastly, the Maison unveiled the official FIFA Club World Cup trophy, which will be awarded to the winning team and lifted for the first time this year at the final. Bvlgari, in celebration of the Year of the Snake, unveiled Serpenti Infinito, an exhibition in Shanghai and Seoul exploring the meanings and interpretation of the snake, which remains one of Bvlgari's most successful and distinctive designs. Bouguerie also unveiled its new flagship in Milan on Via Monte Napoleone and took this opportunity to display the first two Boga bracelets and watches created in the 1940s. And on the production front, Bouguerie inaugurated a new watchmaking workshop in Switzerland and announced plans to extend its jewellery manufacturing capacity in Valenza. Chaumet, meanwhile, unveiled his rejuvenated B. de Chaumet collection and paid tribute to Asia in a high jewelry collection called Bamboo, while Fred began a new chapter for its iconic Force Dis collection with Force Dis Rise. A few words about watchmakers, starting with Tag Heuer, which released a new edition of some of its best-known racing watches, to celebrate its return to Formula One as official timekeeper. Hublot unveiled the world's first multicolored ceramic watch, the Big Bang Unico Magic Ceramic, and then it released three chronographs powered by its high-frequency El Primero movement in the Maison's signature blue color. Now looking at our final business group, Selective Retailing, on slide 21. Revenue in the three-month period reached 4.2 billion euros, representing a 1 percent decrease on an organic basis, and stable revenue on a reported basis after taking into account a positive 1 percent currency impact. Moving on to slide 22, despite a demanding comparison basis, Sephora continued to grow in the first quarter of the year, driven by success of its exclusive burn curation strategy, which resulted in good growth in brick and mortar. The first quarter also saw good performance from Sephora's own product range. Additionally, Sephora premiered a first global film, Beauty and Belonging, at the Sundance Film Festival, which encapsulates Sephora's core values, and role as a catalyst for emotions and creativity. And Sephora hosted also a unique pop-up event in London called Rare Beauty and Sephora Dreamland. DFS continued to be held back by low traffic in Hong Kong and Macao, as previously announced DFS's Venice Galleria for Mako Deitelewski-Wilsh's operation in H1 this year. And lastly, Le Bon Marché continued its progress thanks to its exclusive and distinctive concepts and a rich array of cultural events. The quarter also saw Le Bon Marché and La Serre Maritaine reunited under a new single government structure. This ends the business group presentation and I'll hand back to Cécile who will conclude.