LVMH Moët Hennessy - Louis Vuitton

Ladies and gentlemen, good afternoon. I hope you are well. I'm here with Rodolphe Ozin, who is our head of investor relations, and together we are very pleased to welcome you on our third quarter sales call. 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 will be happy to answer your questions. Before we start, I kindly ask you to read the safe harbour statement on page 2 of your presentation, before I move to page 3 and start the presentation. LVMH showed good resilience in the first nine months of 2025 with improved trends in Q3 across all business groups. Fashion and leather goods in particular benefited from solid local demand in its key nationalities, with mainland China turning positive in Q3, solid growth in the US, which improved sequentially compared to Q2, and positive growth with Europeans in line with previous quarter. The Euro strength against key currencies generated a highly negative minus 5% impact in Q3, and currencies also remained a strong headwind to offshore demand in Europe and in Japan. Finally, all divisions continue to innovate and move forward with their strategies. Q3 has been a notable quarter for the fashion and leather goods division in particular, with pockets of excitement, including new retail concepts, successful shows, and looking ahead to several new creative designers. Next on slide four, with the sales bridge for the nine months, which shows 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. 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. 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. U.S. is stable at 25%. Asia is down 2.0 to 27%. And Japan down 1.0 to 8%. And finally, other markets increasing 2 points to 14%. Moving on slide 6, which highlights the improvement in trend in Q3 in our key regions. And as you see, improvement is visible across most of geographies. Both the United States and Asia, excluding Japan regions, turned positive in Q3. 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. Europe remained broadly stable, albeit slightly impacted by tourism in Q3. Slide 7 outlines the organic improvement of our businesses in Q3. Fashion and leather goods saw the greatest sequential improvement versus Q2, with improved performance in nearly all the key regions, and notably Japan, 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. All other divisions recorded positive growth in Q3. Selective retailing up 7%, continues to perform well, with very strong performance by Sephora and continued improvement in DFS. Watches & Jewellery, up 2%, continues to see a good performance on iconic lines and renovated stores. Perfumes & Cosmetics, up 2%, also improved slightly. And Wine & Spirits, up 1%, returned to growth in Q3, with improvement in champagne, good growth in rosé wines, and still soft demand in cognac. Rodolphe will now share further information by business group before I conclude and we open for Q&A.

Thank you, Cecile, 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 into account a negative 2% currency impact. 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 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 a negative 3% currency impact. Cognac & 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. For the third quarter specifically, the Wines & Spirits division rose 1% organic, with Champagne & Wines up 7%, while Cognac & Spirits declined 6%. On slide 11, Champagne & Wines continue to benefit from resilient demand in Champagne, driven notably by solid depletions in the U.S. year-to-date and by good performance of Rosé wines. 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. 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. Veuve Clicquot continued to deliver solid volume growth and to gain market share. contributing to the good performance of the US market I was referring to and unveiled a new limited edition for its 2018 La Grande Dame Vintage in collaboration with Simon Porte Jacquemus. Maison Ruinart, which also gained tangible market share, appointed Caroline Fiou as its new seller and master. Frédéric Panagiotis, who held the role since 2007, sadly passed away earlier this year. And Caroline, who has worked alongside Frédéric for nearly a decade, will continue to build on Ruinart's commitment to innovation. In cognac and spirits, cognac performance continued to be impacted by trade tensions and soft depletions in the US and China, although China did benefit from restocking in VSOP in the third quarter, hence the sequential improvement in trends. Elsewhere, the division saw promising innovation from Belvedere and Eminente, Glenmorangie'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 euros 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. For the third quarter, fashion and leather goods was down 2% on an organic basis. And now on slide 14, we share some highlights by brand. 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 backdrop. The Maison continued to innovate in its core leather goods line and benefited from the enduring appeal of its monogram and monogram emprunt lines. In retail, the opening of the Louis in Shanghai, which is pictured on slide 12, has attracted incredible attention and traffic, whilst highlighting the depth of the museum's heritage, craftsmanship and creativity. And anecdotally, I would add it's quickly become one of Revital's best-selling locations for suitcases. And finally, true to its tradition 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. 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 US subsidiary in 1948. and inaugurated the House of Dior Beverly Hills on Rodeo Drive, celebrating Dior's history and its connections to Hollywood. 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. Two key highlights on other brands, firstly the success debut collection or runway shows of several designers, Cecile was referring to it, Michael Ryder at Celine, Jack McCullough and Lazaro Hernandez at Loewe, Sarah Burton at Givenchy and we're pleased to have announced the appointment of Maria Grazia Chiuri as Chief Creative Officer of Fendi. Also worth highlighting this quarter is the excellent performance of Loro Piana despite challenging combs and the continued growth of Rimovar and Berluti. 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 a negative 2% currency impact. For the third quarter specifically, perfumes and cosmetics was up 2% on an organic basis. Slide 17 shares some specific highlights by brand, starting with Parfums Christian Dior, 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. Makeup outperformed in Q3 for Christian Dior, supported by successful innovation, including Rouge Dior on stage and backstage, while growth in skincare was driven by the Prestige line. 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-Curie-Jean in fragrances. In makeup, Benefit successfully launched a new foundation capitalizing on the reputation of its iconic professional franchise. And Makeup Forever rolled out novelties in crayon and foundation in its HD skin line. Moving on to watches and jewelry on slide 19, where revenue for the first nine months of 25 reached 7.4 billion euros, up 1% on an organic basis and down 2% on a reported basis after taking into account a negative 3% currency impact. For the third quarter, watches and jewelry was up 2% organic. Next, on to slide 20, we outlined some of the initiatives of our watch and jewelry maison, starting with Tiffany, which enjoyed double-digit growth from its iconic lines, with a particularly encouraging momentum from hardware and not. Renovated stores continued 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 saw the reopening of two stunning flagships, one in Ginza, pictured on slide 18, and another one in Milan. Finally, Tiffany also enjoyed record sales in high jewellery, which continued to outperform in Q3 and YTD. Moving on to Bourguery, which also enjoyed great success in high jewellery in the third quarter with its Polychroma collection. In core jewellery, the Serpenti line continued to perform well and the brand expanded its historic Tubergas line. Also worth highlighting is the very good performance of Bourguery's jewellery watch in Q3 and year-to-date. Finally, Bogri also presented its largest ever exhibition in Japan, called Cadeidos, and took its Serpenti Infinito exhibition to Mumbai in October. Likewise, Chaumet unveiled an exhibition at Osaka Kansai World Expo, and FRED continued to grow thanks to the strength of its core Forstis line. In watches, Tagoyer enjoyed a high-profile presence at the Grand Prix races and saw strong outperformance in its Formula 1 range, while Hublot continued to innovate on materials with Titanium Watch and then they celebrated its 160th anniversary. Now to discuss our last business group, Selective Retailing on slide 22, which shows revenue reached 12.6 billion euros, up 3% on an organic basis and flat on a reported basis after taking into account a negative 3% currency impact. 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, Americas, Europe, and the Middle East, and successfully launched RODE, which debuted in-store and online at Sephora early September in the US and Canada, and is a new record brand launch for Sephora. Finally, Sephora also announced its global beauty event, Sephoria, which enables consumers to discover the newest products and trends, attend 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 US early next year. Elsewhere, DFS benefited from strong traffic in Hong Kong and Macao in Q3, while Le Bon Marché continued to deliver excellent growth and distinctive cultural events such as the Rock and Roll exhibition, which is on until the end of this week. This concludes the Business Group presentation and I'll now pass back to Ceci.

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. We are encouraged by the pocket of improvement that we see in all businesses. Q4 is going to be tougher when it comes to comp base and we need to keep that in mind. 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. Thank you very much for your attention. And we are now ready to take your questions.