LVMH Moët Hennessy - Louis Vuitton

Ladies and gentlemen, good afternoon and welcome to today's conference call. I'm Rodolphe Voisin, Director of Financial Communications and with me is Cecile Cabanis, our Chief Financial Officer. Cecile will start by taking you through the key highlights of the first nine months of 2026. I will then comment on performance by business group. After that, Cecile will conclude and then we'll be happy to take your questions. Before I begin, I refer you to the Safe Harbor Statement included in our press release and on slide 2 of our presentation, which is available on the LVMH website, lvmh.com. Let's now move on to today's topic, our 9-month figures, and passing over to Cecile.

Thank you, Rodolphe. Good afternoon and thank you all for joining today. I will start with slide three with a few comments on the third quarter. As you've seen in the press release, LVMH showed good resilience over the first nine months of the year and recorded again positive organic growth in the third quarter. Currency impact on revenue turned positive in Q3 after five consecutive negative quarters. The quarter was marked by a more macro-led, challenging consumer backdrop among Chinese clientele, which resulted in a mid-single-digit decline in Asia for the quarter, with a more tangible impact on fashion and leather goods, the division most exposed to the region. As far as the other divisions are concerned, the strongest performance came from wine and spirits, watches and jewelry, and selective distribution, all up mid to high single digit, while perfume and cosmetics grew in line with the group average. At group level, Europe, the US, and Japan all grew mid single digit in the third quarter, more than offsetting the decline in Asia. Moving to slide four, where you see the revenue bridge for the first nine months of 2026, Group revenue reached 57.1 billion euros, up 2% organic, down 2% on a reported basis. The reported figure includes a negative 3% currency impact and a negative 1% perimeter impact from the disposal of additional GFS assets and the sale of Marc Jacobs closed on September 1st. As shown on chart 5, the geographic revenue mix remains entirely stable versus the same period last year. So again, a very balanced geographical footprint with US representing 25%, Asia 27%, and Europe 26%. Moving to slide 6, you can see that all regions are positive year-to-date, but with fast-evolving quarterly patterns. In the third quarter, specifically, Asia was penalized by a sharp macro-led deterioration in Chinese consumer sentiment with tangible impact on discretionary expenses, which explains the mid-single-digit decline that you see. Europe, on the other hand, accelerated markedly, driven by improving trends across all divisions. Finally, the US and Japan, up 5 and 6% respectively, were slightly above yesterday's average, with fairly consistent trends in the US, more uneven in Japan, but mostly due to very uneven comparison basis. Rodolphe will now take you through a division performance in more detail.

Thank you. Thank you Cecile and as usual we'll start with wines and spirits. Slide 9 shows the wines and spirits business group delivered 4 billion euros in revenue for the first nine months of 2026. This represents a 5% increase on an organic basis and a 3% increase on a reported basis after taking into account a negative 2% currency effect. Broken down, champagne and wines generated 2.2 billion euros in revenue over the nine months period, up 6% organic and up 3% reported. And cognac and spirits recorded 1.8 billion euros in revenue, up 4% organic and up 2% reported over the nine months period. On slide 10, which details some of the key highlights of the business group, the positive trends seen over the course of the first half continued and even accelerated modestly, resulting in 6% organic growth in Q3 for wines and spirits as a whole. In the third quarter, our key Champagne brands all contributed to growth, driven by solid demand in Europe, Japan and foreign retail. and by the continued outperformance of Dom Pérignon and Krug, which resulted in a positive mix impact. Year to date, our Champagne business also benefits from low single-digit volume growth and low single-digit price impact. Auxerre Wines enjoyed a strong summer season in Europe, supporting tangible volume growth in the third quarter, and Chandon enjoyed strong US demand and a good response to its new garden spritz collection. In Cognac, Hennessy's performance continued to improve in Q3, driven by China, travel, retail and Europe, as well as good momentum in the VSOP quality. And in the US, we're pleased by the launch of the new Hennessy ready-to-serve. Still early days, of course, but it appeals to both existing and new customers and creates a positive halo effect on the brand. Lastly, in spirits, Belvedere and Glenmorangie continued to grow in the third quarter. Now turning to fashion and leather goods, on slide 12, revenue reached 26.4 billion euros for the first 9 months of the year. This represents a 2% decrease on an organic basis and a 4% decrease on a reported basis after taking into account a negative 2% currency impact. Announce slide 13, after CEC's introduction, the quarter was marked by a more challenging consumer backdrop in Asia, whilst US demand continued to grow and Europe and Japan improved compared to the first half of the year. On Louis Vuitton specifically, the brand continued to capitalize on the strengths of the monogram through iconic products such as the Speedy and its scion incarnation, the P9, which continues to enjoy increasingly strong demand with waiting lists across markets, as well as more recent product launches such as the Squire and the Multipass. Also worth highlighting is the strong performance of Ready to Wear year-to-date and the rising success of animations such as the Back to School collection. Finally, the quarter saw the opening of a new store in Chengchun in China, which is off to a good start, and recent flagship re-openings are also delivering strong results. Christian Dior delivered positive organic growth in the first nine months of the year, driven by the success of Jonathan Anderson's collection, especially women bags and ready-to-wear. The Maison's icon, the Lady Dior, is performing well, while the Toujours bag continues to gain excellent traction, and a new house of Dior renovated by Peter Marino also opened in Milan mid-September. Finally, L'Orfiana and Rimowa continue to enjoy above-average momentum, and elsewhere, the creative renewal of our brands is yielding encouraging results, exemplified by the success of the soft Triomphe at Céline, the new Baguette at Fendi, women ready-to-wear collections at Givenchy, or the new Amazona 180 at Loewe, to give a few examples. Moving to perfumes and cosmetics, on site 15, revenue reached 5.9 billion euros for the first 9 months. This is flat on an organic basis and down 2% on a reported basis. after taking into account a negative 2% currency impact. Turning to slide 16, which lists some of the proclamations by our Maison. To summarize the quarter, I would say once again, our historic Maison, notably Parcin-Christian Dior and Guerlain, continued to outperform. Fragrances remained strong and the main driver of growth year-to-date, also including a good performance from Barcin-Revet and Maison Francis-Curdian. By region, Asia and Japan enjoyed good momentum and the Middle East remained resilient and the division also saw the appointment of a chief operating officer to help drive stronger convergence between maisons across manufacturing, supply chain and purchasing functions. Now on watches and jewellery, I'm on slide 18, revenue rose to 7.7 billion euros in the first 9 months, up 8% on an organic basis and up 4% on a reported basis after taking into account a negative 4% currency impact. Turning to Side 19 Jewelry recorded an excellent performance year-to-date, supported by growth across geographies, and our maisons make good progress on strategic priorities. Tiffany's iconic lines, for instance, Hardware and Knot, continued to outperform materially, alongside Sixteen Stone and Bird on a Rock, which are resonating with a broad clientele. Tiffany also progressed in store renovation plan with now 40% of stores renovated also are performing significantly. In high jewellery, the Hidden Garden collection has been well received and contributed to the continued growth of the high jewellery segment. Bowery enjoyed another quarter of strong momentum thanks to the growing success of iconic lines Serpenti Diva and B01 and good success in watches, notably Serpentier and Octo which are adding further to its momentum. The Maison also unveiled its Auroboros art installation on the New York High Line as a part of New York Fashion Week, its first installation in the United States which has consistently been a fast-growing market for the Maison over the past few years. Additionally, our Watch Maison continued to showcase their expertise with several unique new launches and Hublot notably welcomed artist Jeff Koons as collaborator and global brand ambassador. Now, to discuss our last business group, Selective Retailing on slide 21. Revenue in the first nine months came to 12.5 billion euros, a 6% increase on an organic basis and a 1% decline on a reported basis after taking into account a minus 3% currency impact and a minus 4% perimeter impact due to GFS disposals. And moving to slide 22, Sephora continues to excite worldwide with growth across all regions, notably its two largest markets, the US and Europe, where Sephora continues to expand into new geographies and new countries. Its unique selling proposition of a fun shopping experience Exclusive brands, exciting stores continue to resonate for example with the brand Road which just launched with Sephora in Europe and Sephora more recently announced the launch of TikTok in the US and Marks and Spencer a partnership in the UK to help expand its reach with customers and complements existing footprint. Le Bon Marché enjoyed another quarter of growth supported by a rich array of artistic and cultural events. The latest bringing the best of Japan to Paris and meanwhile the group continued with the sale of DFS assets including the latest announcement in August of the sale of DFS Abu Dhabi Travel Retail to Phallic Group all of which resulted in a 7% perimeter impact on the division in G3.