Kering Sa Ord

Good evening everyone and welcome to Caring H1 2026 results. This presentation will be made by Luca de Meo, Jean-Marc Duplaix and Armelle Poulou and will be followed by a Q&A session. Luca, the floor is yours.

Good afternoon everyone and of course thanks for joining us. Before Armelle takes you through the financial results, I would like to share some thoughts on the first half of 2026 and obviously also about the progress we're making across the group. So H1 has been about turning strategy into action and action into results. Three months after our capital market day, we started to execute our brand's playbooks, reduce inventories, optimize our store network, significantly reduce our net debt and improve our key operational and commercial indicators. These actions... Translated into tangible progress in our performance and in fact the group returned to growth in the second quarter despite continuing to optimize its store network. This is particularly significant as we completed 84 net store closures in the first half following 75 net closures in 2025. Sa Ord optimization is not only about reducing our footprints, it is also about upgrading, renovating and elevating our most strategic locations. And the fact that we return to growth while materially reshaping our network demonstrates the improving productivity. Thank you very much. Thank you very much. This is why we remain focused on strengthening our brands and building a more agile, disciplined and effective organization. Our first priority is to reignite the desirability of our houses. Thank you very much. Our ambition is to translate creativity into desirability by ensuring that product, merchandising, pricing architecture, marketing and retail excellence work together as one coherent engine. Let me now share some concrete examples of the progress we have made since our Capital Market Day in April. Starting with Gucci. The Renascimento plan is firmly underway. Thank you very much. Thank you very much. On the desirability front, recent initiatives have been well received. The Primavera fashion show and the Gucci core cruise show in New York at Times Square generated strong global media resonance and ranked first worldwide in earned media value. And this reflects Gucci's ability to be back at the center of the conversation. The creative roadmap is clear. La Familia was designed to reconnect with Gucci's roots. Primavera aims at reigniting fashion leadership and Gucci Core Cruise Collection expands the house appeal. Thank you very much. We continue to bring Gucci's cultural expression to life through La Gucci Vita, a platform that extends the house codes beyond fashion and strengthens relevance, engagement and, of course, desirability. We announced our partnership with Alpine Formula 1 from the 2027 season, which will lead to the launch of Gucci Racing, creating a new platform for visibility and cultural relevance, with new products and experiences in sports as a territory of expansion. Another important milestone came on July 7th with the announcement of the exclusive beauty license agreement between Gucci and L'Oréal, one year ahead of schedule. Thus, we are creating a strong platform for long-term growth. These initiatives are different in nature, but they reflect the same objective – Thank you very much. The House returned to growth in the first semester. We are consolidating fundamentals while working on the key pillars that will drive the next phase of growth. In Asia-Pacific, we are sharpening execution through more localized campaigns and activations. At the same time, we are successfully scaling the men's category through a renewed product and retail strategy, which is also and already translating into Thank you very much. Bottega Veneta continues to be one of the strongest growth engines within the group. Leather goods remain at the core of the strategy. The house continues to enrich its product offer with the recent introduction of the new handbags such as the Barbara or the Madison, further expanding the assortment while the Mini Andiamo has emerged as one of the house's strongest products Thank you very much. Building on this, Bottega Veneta continues to deepen its local engagement through partnerships with leading cultural institutions in Thailand and in South Korea to reinforce its brand integrity in the region. So as we look ahead, I am also pleased to welcome Romain Spitzer, Valenciaga Thank you very much. The priority is to establish a clear and distinctive proposition, reconnect with existing clients and attract new clients and new audiences through a more elevated, feminine and couture-inspired expression of the Balenciaga silhouette. The strong reception of the latest Haute Couture collection a few weeks ago further reinforced Balenciaga's position as one of the few houses with genuine couture authority and creative legitimacy. Balenciaga is also enriching its footwear universe with new propositions such as the Radar, Jet and Triple S2, while continuing to perform strongly in markets such as South Korea, highlighting the brand's relevance in one of the world's most dynamic luxury markets today. McQueen. McQueen is executing its transformation plan focused on simplification and operational discipline while refocusing the brand on its unique British tailoring DNA. This includes the rationalization of the store network with 20 closures in H1 2026, a right sizing of the organization and a greater leverage of Group, Platforms and Shared Capabilities. The recent appointment of Gianfranco Dattis as a CEO, in my opinion, marks an important step in the next phase of the house development. At the same time, the decision to bring the fashion show back to London reflects McQueen's ambition to reconnect more closely with its heritage and reaffirm its unique creative identity. Now Brioni. Brioni continues to demonstrate the value of its unique positioning in sartorial excellence while increasingly contributing its craftsmanship and manufacturing expertise across the group. This includes supporting know-how sharing and industrial synergies and other houses, notably Gucci and Bottega Veneta. The house continues to deliver solid growth, supported by the growing success of Maestria. This is the high-end bespoke offering, which grew by more than 30% year-on-year and now represents nearly a quarter of store sales in H1 2026. Let's turn now to Kering Jewelry, which continues to grow double-digit. At Boucheron, momentum remains particularly strong, reflecting the growing desirability of the Maison. The launch of the 4XS has been a notable success, especially in Asia, demonstrating Boucheron's ability to continuously reinvent its icons. Both Boucheron and Pomellato further reinforced their desirability through their latest high jewelry collections. At Boucheron, the human being collection stood out as a remarkable demonstration of creativity and technical innovation, pushing the boundaries of traditional high jewelry while remaining deeply rooted in the Maison Savoie Faire. At Pomellato, we are amplifying brand visibility through a series of high-profile activations, including a dedicated exhibition at the Palais de Tokyo, further reinforcing its positioning as a benchmark in contemporary fine jewelry. At Chilin, we continue to strengthen the Maison's unique position at the intersection of Chinese culture, fine jewelry, and contemporary luxury markets. Momentum remains particularly strong in Asia-Pacific, with outstanding performance in South Korea. As highlighted during our Capital Market Day, We also see significant growth potentially in jewelry across our fashion houses. The recent high jewelry activation of Gucci in Times Square generated strong client engagement and illustrated the potential for expansion. At the same time, we continue to build a more integrated and scalable jewelry platform already delivering the first sourcing and industrial synergies. In eyewear, we continue to build one of the most successful platforms created in luxury over the last decade. The launch of the first Valentino eyewear collection, supported by high-profile events in Milan and in New York, marks another important step in the expansion of our brand portfolio. Performance in the first half was notably driven by Cartier, and Baibottega Veneta, both of which delivered strong double-digit growth, reflecting the exceptional reception of the latest collection and the continued strength of their brand desirability. Maui Gym and Lindbergh also delivered solid growth, supported by product innovation, strong execution and continued momentum across key markets. Kering Eyewear delivered another period of strong growth and profitability, Demonstrating the strength of our luxury portfolio and our ability to translate brand desirability into category leadership. Alongside our brand initiatives we have been restoring operational rigor across the group. This includes tighter control of inventory, more disciplined management of our retail network, Thank you very much. and Anouk Duranto-Loper as the Deputy CEO of Saint Laurent in charge of product in this fantastic maison. China is a top strategic priority for caring. Last week we were on the ground with our teams to launch a dedicated action plan aimed at accelerating execution and strengthening the relevance of our houses in that important market. Our priority is simple. Thank you very much. while accelerating our capabilities in clienteling, digital engagement and retail excellence. China is evolving, as you know, rapidly and it's becoming more selective, more local and more experience-driven. And in this environment, success is increasingly determined by desirability, relevance and execution. This initiative is built around clear objectives and measurable milestones, strengthening our execution in a country which remains one of the most important growth opportunities for luxury over the long term. Thank you very much. Fashion Week, through a residency program supporting 10 promising Chinese designers, we are investing in the next generation of creativity while deepening local insight and connecting to the next generation of Chinese talents and clients. Restoring long-term performance is also about building stronger common capabilities across the group, I'm convinced. One of the most important changes Thank you very much. Thank you very much. Thank you very much. Balenciaga and Saint Laurent leveraging selected Gucci industrial assets. Beyond driving competitiveness, these initiatives also enhance traceability across our supply chain. So technology is becoming part of caring operating system, helping us make faster, smarter, and more informed decisions across the value chain. This is the ambition also behind augmented caring, combining human expertise with data and AI to improve decision making, enhance execution, and scale best practices across the group. We are not starting... From a blank page, the foundations are already in place, a single cloud-based data platform, digital twins across clients, products, and supply chain, and AI-enabled use cases already delivering tangible results. We are notably deploying advanced planning and inventory management tools, improving visibility, Thank you very much. contribute to our sustainability ambition of driving fair production through resource efficiency, producing closer to demand, reducing waste and making better use of resources across the value chain. In the first half, we have advanced our roadmap around fair production, material innovation and craftsmanship, sustainability, Thank you very much. Thank you very much. Transformation starts with people. It requires a challenger mindset and fresh perspective. This is why we launched Ockering, Gathering high potential talents from across our houses, functions and region and exposing them to some of our most strategic challenges. Several ambitious projects are already moving into implementation. These initiatives span product innovation, AI-powered solutions to enhance client engagement and decision-making, as well as the design of a global event aimed at inspiring and connecting the next generation with luxury. Akkering is a powerful illustration of the energy, the creativity, and the entrepreneurial spirit that exists across the group. Ultimately, the AI-enabled tools we are developing are transforming the way we engage with clients. Client advisors can access relevant client insights and product recommendations through Natural Language Queries, created tailored selections and deliver more personalized experiences. To conclude, the first half of 2026 was about turning strategy into action. We continue to strengthen our houses and we made concrete progress in building a more agile and disciplined organization. Now Armelle, it's time for you to take us through the financial results in more detail.

Thank you Luca, and good evening everyone. Luca has just outlined the action, let me show you the results. The group is back to growth in the second quarter. Profitability improved, our balance sheet is now much stronger. And we did all of this while continuing to invest in the desirability and future growth of our houses. On slide 16, you will find a summary of the key figures for the first six months. Revenue was 7.2 billion euros, up 1% on a comparable basis, with a return to growth in the second quarter. Recurring operating income came to 921 million euros, a 12.8% margin, up 40 basis points year on year, and 300 basis points versus the second half of 2025, delivering on the progressive improvement we had targeted. Free cash flow from operations reached 2.6 billion, including around 800 million from real estate net proceeds and the Gucci Beauty agreement. CapEx amounted to 419 million. Excluding real estate investment, CapEx was €260 million, representing 3.6% of revenue. Net financial debt stood at €3.3 billion at June 30, down €4.7 billion from year-end 2025. All those indicators point in the right direction. On slide 17, first half revenue was down 3% reporting and up 1% comparable. After a stable first quarter, the group posted comparable growth of 2% in Q2, a two-point sequential improvement, and the first quarter of growth in 12 quarters. This acceleration was reflected in better trends across most of our activities. We achieved that while continuing to streamline our network. We ended June with 1,635 stores, down 84 since your end, on top of the net 75 closures completed in 2025. We remain on track to deliver at least 100 net closures this year. Beyond efficiency, these actions sharpen our presence, focusing on fewer, higher quality locations and driving stronger store productivity. Foreign exchange remains a headwind. FX weighted on reporting revenue by close to 4 percentage points over the half, largely concentrated in the first quarter. In Q2, the drag eased to around one point, supported by the appreciation of the Chinese renminbi and the South Korean one. Looking at our regional mix, North America increased its contribution to 24% of group revenue. Western Europe remained stable at 30%, while Asia-Pacific, excluding Japan, was broadly unchanged at 30%. Japan represents 7% of world revenue, and rest of the world decreased to 9%, mainly reflecting the situation in the Middle East. I will come back to this in a moment. On slide 18, you have revenue by segment for Q2 and H1, and sequential trends are positive across the board. Again, fashion and leather goods were stable in Q2 on a comparable basis, a 3-point sequential improvement versus Q1, with trends at Gucci improving by 6 points versus the first quarter, leaving Q2 down 2% year-on-year. Kering Jewelry delivered another outstanding quarter, up 18% comparable versus last year, after 22% in Q1, confirming its role as a growth engine for the group. Kering Eyewear grew 8% comparable versus last year, accelerating slightly from Q1, once again demonstrating the consistency of this business. Corporate and other declined 6% on a comparable basis in Q2. Overall, the return to growth was broad-based. On slide 19, the top line by channel. Retail, including e-commerce, accounted for 73% of group revenue. It was broadly stable over the semester on a comparable basis and returned to growth in the second quarter up around 2%. Traffic remains under pressure across most regions, but conversions improve and both average unit retail and average tickets increase meaningfully more than offsetting lower volumes. E-commerce grew 3% comparable and represented around 12% of retail sales. Wholesale and other, which accounted for 27% of total revenue, was up 5% on a comparable basis in the first half, although this reflects two different dynamics. All sale revenue from fashion and leather goods was up 1% as we continued to prioritize our own retail network while working with a more selective base of wholesale partners. Growth was driven by both eyewear and jewelry. Our revenue increased 8% comparable, reflecting the strength of a business model that is wholesale driven. Jewellery wholesale revenue was up 7% comparable in the first half. After a strong first quarter with growth of 14%, second quarter revenue was flat, primarily reflecting the conversion of some franchise locations to directly operated stores. On slide 20, a closer look at retail by region. North America was once again the group's strongest region, up around 10% in the second quarter versus last year, after 9% in the first quarter, with positive contribution from most of our houses, including Gucci, where brand equity is resonating particularly well with American consumers. Thank you very much. Driven notably by the outstanding momentum of our jewellery houses and a more favourable tourism dynamic than in Q1. Asia-Pacific was down 1% in Q2, with trends improving gradually. Performance remained mixed across the region. While mainland China remained down, the rest of Asia, and South Korea in particular, delivered an excellent performance. Finally, rest of the world remains challenging, down 8% in Q2, mainly reflecting the instability in the Middle East, even as retail in the region improves sequentially month after month through the quarter. The Middle East typically accounts for around 5% of group retail revenue. Its negative impact on group revenue growth was 1 percentage point in the second quarter, in line with Q1, when the disruption affected only one month of the quarter. Taken together, momentum improved across most regions. Let's now turn to profitability on slide 21. Recurring operating income reached 921 million euros in the first half, with a margin of 12.8%, up 40 basis points year-on-year and 300 basis points versus the second half of 2025. Our margin is now above both the first half and the full year of 2025. Two things drove it. Better commercial momentum and the discipline now embedded across the organization. Thank you very much. Hope OPEX was down 5% in the first half at 4.2 billion, driven in large part by fixed cost reductions that have structurally lowered our cost base. These are structural actions and their benefits will continue to build. Crucially, none of this came at the expense of our houses. ANP was maintained at around 9% of revenue, sustaining brand visibility and supporting the momentum of our collections. That balance is deliberate. We are restoring profitability while continuing to fund creativity, innovation, retail excellence and client engagement. and this is what gives us confidence in the durability of what we are building. Let me now review our segments, starting with carrying fashion and leather goods on slide 22. Revenues stood at 5.8 billion euros in the first half, down 1% comparable. In the second quarter, revenue reached 2.9 billion euros and the segment turned positive. 3 points better than in Q1. Beyond Gucci, which I will cover in a moment, momentum improved across several houses. Saint Laurent delivered a strong quarter in retail, with growth accelerating across most markets. The house performed particularly well in North America and Western Europe, supported by strong client demand as the new collection continued to gain traction. Better retail execution and stronger product availability drove robust growth among both VIC and core clients, while mainland China and the Middle East remained more challenging. Bottega Veneta once again outperformed, with retail trends accelerating across most markets. The acceleration was particularly strong in North America, Japan, South Korea and Western Europe, supported by excellent momentum in leather goods. Balenciaga faced a more challenging quarter in retail, as the house continued to work through its creative transition and rebalance its business. Let the goods, driven by the city and Rodeo, deliver the strong performance, a reminder that the underlying product engine remains sound. McQueen accelerated the execution of its repositioning under its new CEO, strengthening the foundations of the brand and rising its distribution network. Brioni continued to deliver another quarter of strong performance. Segment profitability also improved. Recurring operating income was 828 million euros, a 14.3% margin, up 0.7 points versus the first half of 2025, reflecting cost discipline throughout the segment. Focusing on Gucci now on slide 23. The House recorded sales of 2.8 billion euros in the first half, down 5% comparable. In the second quarter, revenue reached 1.4 billion euros, with the decline narrowing to 2%, six points improvement versus Q1. New collections continue to gain traction, driving stronger brand visibility, renewed client engagement, and positive retail trends. Leather goods return to growth in the quarter, supported by the successful launch of Borsetto and Paparazzo. Performance in retail improved across all regions during the quarter, with North America remaining the key growth driver. Western Europe and Asia Pacific showed encouraging signs of recovery, while mainland China remained challenging despite a gradual improvement. The quarter was firmly execution-driven, with a refocused product architecture, faster product introduction, and continued upgrades to the distribution network. The House recorded 19 net store closures in the first half, while continuing to invest in the refurbishment of selected stores. There is still work ahead, but the actions taken across products, retail and organization are visibly paying off. Recurring operating income reached €468 million, a 17% margin, up one point versus the first half of 2025. These reflects continued cost discipline, and importantly, it did not come at the expense of investment in the brand, as Luca showed earlier. On slide 24, Kering Jewellery was once again one of the standout performers. First half revenue reached 521 million euros, up 20% comparable. In the second quarter alone, revenue reached 252 million euros, up 18% comparable. Boucheron continued to deliver exceptional performance, reaching new record levels with particularly strong growth in Japan and Asia-Pacific, supported by the successful launch of the new 4XS, variation of the house iconic 4 collection. Pomelato also maintained strong momentum, driven by continued strength in Japan, as well as in North America, and the sustained success of its key collections. Dodo recorded a more challenging quarter against a demanding comparison base. Finally, chilling growth moderated during the quarter, although performance in Asia-Pacific remained outstanding, particularly in South Korea. Recurring operating income was 32 million euros in the first half, a 6.2% margin, up 2.7 points versus the first half of 2025. Beyond the quarter, these results confirm both the strength of our jewellery houses and the scale of the opportunity ahead. On site 25, Kering Eyewear delivered yet another strong quarter. First half revenue reached 965 million, up 8% on a comparable basis. Second quarter revenue totaled 476 million, also up 8% on a comparable basis, with growth supported by all major regions. Performance benefited from a series of high-profile product initiatives. The Lindbergh 40-year anniversary capsule collection, the relaunch of the optical category at Maui Gym, and the successful debut of Valentino's eyewear collection. The business keeps demonstrating the strength, consistency and scalability of its integrated model and remains a reliable source of profitable growth and diversification for the group. Recurring operating income was €222 million, a 23% margin, up 2.9 points versus the first half of 2025. On slide 26, a brief word on corporate and other which is not material at group level. Revenue was up 1% comparable over the first half and down 6% in Q2, primarily reflecting the end of rental income following the real estate transactions, despite a very strong double-digit performance from January. The corporate segment reported a recurring operating loss of 152 million. Now, looking at the remaining lives of the P&L on site 27. Total downrecurring items amounted to a net expense of 223 million in the first half, primarily reflecting costs associated with real estate transactions, but also impairment charges and penalties related to the store closures as well as restructuring measures. Net financial charges amounted to 280 million euros, or 160 million, excluding interest on these liabilities. The cost of net debt amounted to 122 million, down 26% year-on-year, benefiting from higher interest income, supported by the group's strong cash position, as well as lower interest expenses resulting from reduced average long-term debt. As anticipated, the effective tax rate on recurring income is 32.5%, down 3.5% in Polish compared with fiscal year 2025. We continue to expect the tax rate to gradually return to its normative range of 27% to 28% over the next 2 to 3 years. As a result, group debt income from continuing operations excluding non-recurring items reached €355 million. On slide 28, a quick look at CAPEX and free cash flow. CAPEX amounted to €419 million. Excluding real estate investment, CapEx totaled $260 million, equivalent to 3.6% of sales. Free cash flow from operations reached $2.6 billion. Excluding real estate net proceeds and the Gucci Beauty Agreement, free cash flow from operations amounted to $1.8 billion, up 68% versus H1 2025. On slide 29, you can see a more detailed view of the Fricascio generation with one element I want to flag. The change in operating working capital amounted to 602 million, representing an improvement of 863 million year-on-year and reflecting continued discipline in inventory management. Reducing inventory remains a priority, and our 1 billion reduction target for our fashion and leather goods houses by year-end is well within reach. The aim is a healthier, faster-rotating inventory base, freeing up cash while continuing to fund the newness our collections require. This cash generation has allowed us to strengthen our balance sheet, which I will turn to on slide 30. At June 30, net financial debt stood at 3.3 billion euros, a reduction of 4.7 billion euros compared with year-end 2025. Three elements contributed. The €4 billion proceeds from the disposal of Cain Beauté and real estate transactions completed over the period, including the €700 million proceeds from the sale of Via Montaigne-Napoleone. Net debt to adjusted recurring EBITDA stood at 1.4 times, which we consider a healthy level. In the first half, we paid €490 million in dividends, in line with our payout policy. Our capital allocation guidelines are unchanged. M&A restricted to selective bolt-on acquisition, reinforcing supply chain and expertise, and a disciplined approach to shareholder returns. So, growth returning, profitability improving, and a materially stronger balance sheet. That is the financial picture at the half-year. Luca, back to you.

Merci, Armelle. So, as you have seen, the action taken over the past month are significant. Thank you very much. and we remain realistic, really realistic about the challenges ahead. So our priority now is to execute reconquering roadmap, to continue improving profitability and further strengthen the foundations of caring for the long term. On that basis, I'd like to take the opportunity to confirm the guidance we shared earlier this year And the guidance was growth and improved profitability in 2026 versus 2025. I think we are now available, of course, to answer all your questions.

Now open the Q&A session. Please open your mic and try to limit you to two questions. So we'll start with Edouard Aubin, Morgan Stanley. Edouard, please could you open your mic?

Yeah, I think that's open. Can you hear me well?

Yes.

Okay, wonderful. Thank you. So good evening, Luca and team. So yeah, congratulations for the encouraging developments. So two questions for me on Gucci. The first one, Luca, you talked about progress in terms of product distribution, communication, etc. I mean, fundamentally, what makes you confident that Gucci now is really on the right track? So that could be question number one. And then question number two, in terms of the, you know, from a commercial standpoint and the trajectory of the recovery, you know, if you look at consensus, you know, expecting, you know, already Gucci to turn positive in Q3, despite a more difficult con base, do you think that's, you know, within the context? Thank you so much. Look, I think we see there is a lot of work going on at all levels in Gucci from retail to product to the industrial system.

The work is done on suppliers, etc., etc. What makes me confident is that Gucci is an incredibly popular brand. Of course, all the eyes are on Gucci, but when it turns positive, everybody will actually realize what's going on because everybody is looking at it. I think we have a strong management team there. They work very well together. They're becoming faster. There's a lot of things that they have to fix. Look at what we did in retail. I remember that we were guiding at, not on Gucci, but overall on the group 100 store closures net by the end of 2026. We are already 84. Part of it is the work done at Gucci. So they're rationalizing a lot. I think that you have to take into account that the real first complete collection of Demna is actually hitting the stores right now. We will start to communicate in the next weeks a lot with a very strong campaign. What we've done so far was activating a couple of collections that were partial collections. Thank you very much. I, you know, through the year, I think what we can commit is, as I said before, is a growth. This is visible for the group. I don't think it's going to be linear. Potentially, you know, we have a more unfavorable, let's say, comparison with last year on Q3. We see at this stage, you know, Q3 maybe being flattish, but, you know, We are people that are there to fix problems, find solutions and overcome the challenges. So far, it seems that the machine is under control. One of the things I'm more proud of is, apart from the dynamic of the team internally and the way we work with the brands, Thank you very much. I can for sure commit that the team will be fighting, and even the Gucci team, from now to the 31st of December, to comply with the commitment we've made. But I feel, based on what I said before, that it might not be linear, but that to me is not particularly important. The important thing is that we continue to progress, including Gucci, in the second quarter, as proved. Thank you.

We'll now switch to Anne-Laure Bismuth from HSBC. Anne-Laure, please, could you open your mic?

Yes, hi, good evening. My first question is on Gucci. So just to confirm that on the recently launched Primavera collection, you are seeing continuing improvement on the back of this launch in July, and is it across all categories? Also, you talk about the fact that you are building the momentum for the long term, but how long the turnaround of Gucci in China can take, even that the bond desirability has been damaged? And my second question is for Armelle about OPEX management. So OPEX went down 5% in each one while it was guided to be flat for the full year. You said during the presentation that the benefit of cost discipline will continue to build. So should we expect the same decline, the same decrease in OPEX for the full year, meaning around 5%? Thank you.

Maybe I... You want to start? No, you want me to start with the Gucci... I'll start with the Gucci... With the Gucci part, I think it's relatively soon to actually make an assessment. We see very positive sign as much as we have seen that with the previous couple of collections, especially on Eunice. The collection has hit the first store. It's a part of it on the 15th of July. We'll start communicating by the end of August, and by then all the palettes and all the offers will be in the stores, so I think we'll be able to talk about that next time we see each other. But I think we're pretty confident, as I said before, that's the first complete collection that the new artistic director has created. as a performer, so it's very important. On China, you're right, there is a lot of work that has to be done, a fundamental work. That's why we were there last week altogether. I think the first thing we have to do is to make sure that we can clean the stable from maybe unorthodox practices that we had in the past in Europe. Thank you very much. and the point is somehow so low that I feel there is a lot of potential in China. Is it going to take weeks? I don't think so. I think it's probably one of the most important shanties we have, not only for Gucci but for all the brands because, as you know, carrying in China in general hasn't captured all the potential of the market but... It's an opportunity and an upside if you do it right. I think we deserve a bigger market share, even if we know that everybody is competing for that thing. But naturally, we should be better than where we are. And Gucci is for sure the first symbol of that kind of return. But we are very committed to execute this project.

And also on OPEX, as you say rightly, we are very satisfied with the performance of the first half because we managed to decrease OPEX by 5% and this was mostly done on fixed costs. So you remember rightly that we guided at the beginning of the year to flat OPEX. Thank you, Armelle. So we now have a question from Oliver Chen, TD Cohen. Oliver, please, could you open your microphone?

Thanks so much, Philippine, and good to see you all, Luca and Armelle. Regarding Gucci, what are the key catalysts in terms of the collections ahead? And would you expect the North America performance, which has been tremendous, I suppose, to outpace Asia Pacific? And as North America has been somewhat super normal, but very encouraging with so much wealth effect, Second question is on supply chain and artificial intelligence. How are you interacting with AI relative to driving both inventory management, which is a huge opportunity, and cultural relevance as you've had that cultural relevance dashboard? Thank you.

The second one is a complicated one. It will take me an hour and a half to explain to you what are the many things we're doing. I would start from that one. I think that the objective is to make of carrying one of the... One of the companies that better uses the opportunity of this new technology. I think the good news is that we actually have, also compared to other companies, the right infrastructure to start and to become pretty core application of AI in our daily life. I think there are three areas where There is really potential. I'll use a slogan. I tell to the people, we follow the money, we follow the product, and we follow the client. So these are the three areas where I believe that AI can really boost our performance, increase productivity, maybe more than double our speed on many of the things. And it's, I wouldn't say, I mean, again, it's the beginning of a journey that will last years, etc. But we are determined to take the advantage and the opportunity for AI. And next time we meet, maybe we spend a little bit more time, you know, on the detail of the project. But it's a core activity for us as a team. As you know, we have also onboarded new competencies in the house. people that have already done that in other companies. So I'm very positive about it. On the Gucci thing, it's a process. We were out with the collection at the beginning of the year called La Famiglia. There was a way to kind of reconnect to the roots of Gucci. Thank you very much. and of course with the new one we are covering the whole thing so if I project simply the performance of the first two collections and multiply them by the variety of product that will come with the Thank you very much. If I may, I would add something, Luca. When it comes to the specific situation of North America, because it was also your question, of course there is a wealth effect, but it does benefit to the whole sector globally.

Thank you.

So we now have a question from Luca Solca, Bernstein. Luca, please, could you open your mic?

Thank you very much indeed, Philippine. Hello, Luca, Jean-Marc, Armelle. I have two questions. One is about your thinking on price and mix. We seem to see that some of your peers are struggling with the middle class aspirational consumers. Especially in soft luxury, there seems to be an affordability issue that luxury companies are confronting. I wonder how your strategic thinking is on where the core brands should be pricing. I think you've shown you're not shy to reach down to some of the aspirational middle-class consumers, and I wonder how You see the development going forward. There was in the past few years a lot of emphasis on stretching upwards and pricing higher, but this seems to be the wrong thing to do at the moment. I wonder how you think about it anyway. The second question is about the remarkable achievement in reducing networking capital. I have a question on inventory. I believe you have voiced... ambitious plans to reduce inventory by about 1 billion euros in 2026. I wonder how the dynamic of inventory reduction is going to play out. How much is it connected to reducing inventory that was present in the company? How much is it coming from the ability to plate more flexibly and in a leaner manner? and how this is going to impact the off-price versus full-price mix. And if you could give us a bit of a granularity on the off-price channel at the moment, that would be fantastic. Thank you very much.

On the pricing mix, both questions that would require a lot of time to be asked because both of them are on multidimensional issues. I think we have embedded in the plan right from the beginning that A scenario where inflation would not help us compensating from inefficiency in what we were doing. So I think that we actually took a scenario where the inflation that was possible maybe a few years ago is not possible anymore. There is a lot of way of positioning or repositioning products. On one side we are... Cleaning up and reducing everywhere we can and in every way we can the off-price practices. I think we have to protect the full price. This is the strategy. We are looking at, as a very competent analyst you are, I'm sure you have seen that the new collections on most of the brand, take for example Gucci, is competitively priced on the new products. And we have also, in a few cases, kind of repositioned some of the products because I have the feeling that in some categories we kind of went too far. and play with the elasticity and I have to tell you I cannot you know kind of unveil details but sometimes that had a very big impact on the volume so the elasticity was not exactly linear Thank you very much. and at the same time there is a lot of work that has been done so far and it is embedded in the plan to push on quality content because that's the way you create this ability. We are in the luxury market so we are here to sell dreams, we are here to sell excellence. So the best way you can do that is improve the product quality and execution and the service. So my simple message is We are very much aware of the fact that the market will not necessarily give us the comfort of turning our problems for the customer. We have to come up with very competitive products, very high quality products, very creative products at the right price. On the stocks, I have to say, and then maybe I'll leave the word to Armelle because also to honor the work that has been done by her and by the team we committed to a billion reduction of the stocks we are on track on that so we confirm that this is let's say our target for the end of the year I believe that we have gone I would say pretty fast and on that Of course, you know, the first hundred of millions are easier and then you get to a system, I mean, to an asymptote of this where it's more difficult to reduce unless you don't change the system completely. This is what we are also planning. Now, to give you an example, the way we are able to produce, the way we are able to refurbish and to replenish the stocks is one of the discussions we are having. Thank you very much. and we know exactly where are the benchmarks, at what level are the benchmarks and we are determined to build a caring or houses of caring being amongst the most competitive in this field. I hate stocks. I think it's not a good thing. So we will have to design a machine that is different. Right now we are driving a machine very, very well and we are hitting all the, let's say, the... Thank you very much. The challenge, of course, is in the next months to continue to sell, to increase sell-through, so that we can continue to go down and work on the quality of the stock. Do you want to add something, Armelle?

Maybe what I can add is that this achievement has been done by teaming people from the different brands all together. I think that was a great opportunity to benchmark the practices between brands. And at the end of the day, to decide to have one process, getting the best of each of the brand experience together. and I think it's very important and now we are really working on improving the integrated business planning within the group. Also investing in some tools that we can leverage on all the different brands even if each brand keeps its specificities. So for me it was a very interesting experience in how we can team between the brands behind a very strong and demanding target and that's really what we are doing in many different directions.

And maybe to conclude on that question, let's say that the performance of the quarter of the semester has not been driven by discounted sales. The full price sales have been very robust in terms of growth, especially in Q2, across the board. And two important messages. We had presented some ambition during the Capital Market Day in terms of reduction of the stock footprint, including the outlet network. and this ambition is still the same and we are closing some outlet stores. So that's still part of the journey we are engaging in.

Thank you very much indeed.

Thank you Jean-Marc. So let's now switch to Antoine Belge, BNP. Antoine, please could you open your mic?

Yes, hi, it's Antoine Belge at BNP. Good evening to all of you and congratulations on those results I know the focus is on Gucci, but I think Luca yourself, you said that the group was not just about Gucci. And in Asmat, I hate to call them non-Gucci rounds, so it seems that the other rounds accumulated were up 2% in the quarter. Maybe there is some rounding, which would be the similar growth rate than in Q1. So, I mean, could you say if the masses are correct and which brands might have accelerated and maybe another brand might have decelerated, notably on the main one, BV, Saint Laurent, Balenciaga? And the second question is, I think before the You know, the results you had indicated that the H1 margin would be lower than H2. So with this very strong beat in H1, are we considering this? Like it was a conservative assumption, or do we think that 12.8% is like a flaw and then you will be at least doing 12.8% in the second half? And if you could say something on the gross margin evolution, that would be great.

Look, I think all in all you're right. So all the non-Gucci, as you called, the non-Gucci band, they're growing 2%, it's a mixed thing. Saint Laurent and Bottega Veneta are doing great on the fashion side. Balenciaga is in the middle of a creative transition so I think we have a very good performance on leather goods and we're trying to find ourselves more on the ready to wear and on the shoes so we'll have to give the team time to regain a certain positive dynamic But Saint-Laurent Bottega, very, very good, I have to say. And then don't forget, you know, the jewellery part that Jean-Marc is leading as a division now and the carrying I wear. They're giving us a really positive surprise, very strong and very solid management of those two categories. That's what I can say. We committed to growth in 2026 to 2025. We told you that we'll be better also in terms of profitability. The good thing is we in H2 2025 were I think at 9.8. So we were 12.8 on H1 2026. So we keep going. Armelle told you that we continue to reduce the cost in an intelligent way. It's also important for me to say that if you look at the numbers, the cost reduction is not actually... Thank you very much. I think we'll continue to do that. So it's not that we're cutting on the flesh, if you want. So we keep investing. So if you look at that, you can expect us to continue to work on a profitable 2026.

Yes, maybe to answer precisely to your question, Antoine, we confirm that we expect the H2O margin to be higher than the H1O margin.

Thank you very much. Maybe on the gross margin, I don't know if you can...

and then we have probably some in terms of regions still suffering in China is less positive for the gross margin but all in all we see ups and downs but in the gross margin nothing very special to comment.

Thank you. Thank you Armelle. So we'll now switch to Erwan Rambour from Goldman Sachs. Erwan, please could you open your mic? Thank you.

Hi, I hope you can hear me. Erwan from Goldman Sachs. Congrats on stabilizing sales and delivering higher margins on fashion leather. So two questions, please. One on nationalities. I'm wondering if you could tell us about sales growth by cluster, the Europeans, the Chinese, the Americans. I'm wondering if... The strength of the renminbi means that Chinese are maybe doing a bit better abroad than at home. Similarly, are Americans growing more abroad than at home? And I think, Luca, you mentioned a few times, Korea as a standout, is the weight of the Korean nationality relevant? And are you seeing any volatility in terms of demand, given the volatility in terms of wealth creation in that market? and then secondly on channels you have wholesale and fashion leather relatively aligned or even slightly better than retail does that mean that the that channel is clean and should we expect wholesale in in H2 to be aligned with retail trends and if I can squeeze a little one more on channels the retail downsizing so net closures of 100 units How are you thinking about next year? I think you said, Luca, that you were executing very quickly on that. Maybe you have a clearer view of how many you might shut in 27. Thank you.

Well, I think I'm going to ask last, let's say start from the last one and maybe then leave it to Armelle or Jean-Marc if you want to for the other two. But I think we're going relatively fast. One thing is important is that the whole work, of course, we do it with the brands, but we have pretty much centralized work. Thank you very much. We said a few months ago, or the time in April, that we would look at closing 250, let's say, stores across France by 2028. We did 84. Sorry, 2013. But we are faster right now. There's no reason why we shouldn't look at all the opportunities. I think we can do at least a similar thing Thank you very much. At the same time, we also committed to relocate or renovate two-thirds of the network, so all the brands, Gucci, Saint Laurent, Bottega, etc., are also accelerating the plan. Thank you very much. on the papers like 5% of the entire network, right? And the drug of this thing having less sales point has not particularly impacted the H1 result. It shows that we're doing the thing properly and moving people from one store to another and finding other solutions. So we are confident that by doing that like this, we can continue the process in an healthy manner without impacting fundamentally The performance and if possible, and this is the plan, to make it qualitatively better because we're going to close outlets like Jean-Marc said or places that are not productive. Then you have a question on old sales dynamic and nationality.

So let me answer to you on the nationalities first. So actually all nationalities improve sequentially to Q1, albeit in varying degrees. The Americans improved. Now they improve actually to high single-digit positive, both locally but also as tourists, especially in Europe but also in Japan. Other Asian, mostly driven by Korean, turn positive, like European customers also turn positive in Q2. And Chinese customers as a clientele stay negative, but improve from Q1 sequentially as Japanese and Middle Eastern customers. So basically all nationalities improve with a strong trend I think it is positive for American customers, both locally and when traveling. Regarding wholesale, you know, you sometimes have some phasing effect in wholesale, so it's not always very easy to forecast, but the idea is roughly to stay roughly flat in H2O.

Maybe I will add a few colors both on the retail network and on the wholesale. First, regarding the retail network, just as a reminder, during the Capital Market Day, the idea of reducing by 250 was faced the following way. 100 in 26, around 100 in 27 and 28 in the remaining years. Thank you very much. Thank you very much. Because we did it, but also because there was a natural cleanup of the wholesale distribution with few distributors which have disappeared. So in a way now there is a more clear picture when it comes to the qualitative distribution. After a phase of plateau, probably we have no taboo with Luca when it comes to distribution, be it online or wholesale. There will be some opportunities to regain some market shares and business with some wholesale accounts gradually.

Thank you, Jean-Marc. I just wanted to follow up with Armelle on the Chinese cluster, just at home versus abroad. I don't know if you're seeing benefits from a stronger Renminbi market. Thank you, Armelle. And let's now switch to Thomas Chauvet from Citi.

Thomas, please, could you open your mic?

Good evening, everyone. Thanks for taking my questions. The first one, maybe, Luca, on production and quality. At the CMD, you explained how product quality was key to drive client trust, how you wanted to be more powerful as a group to deliver. Thank you very much. Secondly, on jewelry, could you quantify if this was material, the tailwind of the conversion of, I think, franchises from wholesale to retail in Q2? Is that going to last for more than just a few quarters? And which brands and regions benefited from that? There's a big gap in growth between retail and wholesale, particularly in Q2. And just maybe for Armelle, clarification, OPEX, you said down on a full year basis now rather than flat. So is it perhaps flat in H2, so down low single digit on full year, or are you also working on reducing costs in H2? Thank you.

So I'm going to take the quality part and then I'll leave it to the second one, to the master of jewelry that is sitting on my left, for you on my right. So what I, let's say... What we did is, first of all, it's important to say that we have established a central industrial platform, or a team who is taking care of different topics, including manufacturing standards, suppliers, purchasing, design of, let's say, engineering the ecosystem of supplier, logistics. and quality, okay? So, which we never had before. And the objective being trying to have one approach, a luxury approach to quality, okay? Which, of course, we had here and there because otherwise we would not have some of the best houses on the planet, but there was a form of dispersion of the practices and the standards to design. Very important thing is that... I feel, and I felt like right from the beginning, that we need to have a different, let's say, setup between us and the supplier. We need to decide, and this is what we're doing, what we make, what we buy, on the different categories. We have a plan to reintegrate almost, if I remember the numbers correctly, but almost in some cases double Thank you very much. Selectively, when you do this, it's easier to control the quality standard and to set a methodology of doing it, especially also because you can embed right from the beginning the concept into the product. I think there is room to reduce the span and the numbers of suppliers. When I was in Florence, I told you that We had more than 4,000 suppliers across the brands. I'm talking about the fashion and leather goods part. 25% of them would do 98% of the production. So there's a long queue into it.

When you have a long queue, it's less easy to control.

So we're going to concentrate on our production, our externalization, on a smaller number of suppliers, and it will give us a chance to set a very, very clear standard and to have a rule of engagement with the suppliers that are... Thank you very much. Thank you very much. Thank you very much. and let's say the idea that we could spend more cogs to improve the quality. That's what he said and this is still true. That means I don't want industrial people to take the excuse that they don't reach some quality Thank you very much. You have the one on jewelry?

Yeah, what Armelle said about wholesale for the fashion and leather goods brands, it's also true for jewelry in the sense that in the trends you see, you have also some phasing effect, especially at Chilin and Dodo. Thank you very much. Thank you very much. for Boucheron. So difficult of course to predict for the following of the year even if I guess that H2 should be less dynamic in terms of wholesale for Chilin and Dodo especially Chilin because we had a lot of deliveries at the beginning of the year after a year where at the end of 25 or distributors especially in Asia were a little bit short in terms of inventories.

Armelle, on OPEX? On OPEX, I confirm that OPEX will be done for the full year and I won't give you more detail at this stage.

Reminding that something which was very important in the presentation of Armelle was that it's minus 5% in euros, but it's minus 3% in constant currency. So depending also on the evolution of the currencies during second semester, at the end of the day, the decrease of OPEX could vary a little bit.

Thank you Jean-Marc. We now have a question from Charles-Louis Scotty, Kepler Chevreux. Charles-Louis, please could you open your mic?

Yes, good evening. Thank you for taking my questions. I have two. The first one on Gucci. Given the large number of stores closures and with sales down only 2%, I believe Gucci comparable store sales growth has finally turned positive again. Could you confirm whether that is the case and if so by roughly how much? I was also quite impressed by the Gucci 9% retail comparable sales growth in APAC in Q2. What were the main drivers of this improvement and which market contributed the most? I assume Korea was supportive, but if you could provide some color on the Gucci performance in China and also indicate by how far it was below the regional average, it would be helpful. And my second question is on the Gucci Racing Alpine Formula One Team partnership. I think I understand the strategic rationale and the potential benefit of this partnership for a luxury brand like Gucci. But could you elaborate on how you intend to leverage it beyond simply having the Gucci name displayed in Formula One? and also we have seen a wide range of estimates regarding the financial commitments involved, some of which seem quite speculative. But could you give us an indication of the size of this investment or at least whether it represents a meaningful portion of the Gucci AMP budget? Thank you.

I'll take maybe on the first one. What I can tell you, we won't be extremely granular on this, but what I can tell you is... One of the things that we did is we actually concentrated on Gucci, on 100, 120, what we call laboratory of excellence in retail. These are the 100, 120 top stores. So just to be pragmatic, we start focusing on that part of the network that is the more... and therefore also the more reactive to new initiatives. And on those stores, Gucci is doing well. And then the growth, there are so many channels, things, the situation is very difficult for me to answer in a very specific way without giving you too much of the information. But the good news is that On the best part of the network, Gucci is reacting very well with the new collection, etc. Maybe the second question, maybe you can give an answer. I take the Gucci racing thing because, of course, I like the question very much and I'm just going to give him the chance to tell you a little bit about what this project means and the potential of this thing. You want to take the second one? Okay.

Yes, for Gucci in APAC, yes, there's been an improvement, a very quite important improvement in the region. Mainland China remains soft, but improved significantly quarter on quarter. Greater China also improved, with Taiwan turning positive and Hong Kong being a bit softer. And as I said, also Gucci had a positive performance in South Korea, even if it was probably a bit below the pace that we saw in that market.

So F1, I think I know the topic pretty well. I know the potential of this platform. We actually see it as a platform just more than... I have to remind you that there are at least 100 million people looking at 24 Grand Prixs every other week around the world in at least 20 markets out of the 24 where we have a commercial presence so that we can link the event to our retail, etc., and create a lot of initiatives. The contract was structured, I think, in a very innovative way Thank you very much. is that we have created a small division but very competent team in Gucci that we call Gucci Racing that will be responsible to develop also products that we will be able to sell with the Gucci Racing team. That means this is for us a way to engage in a smart way into the sportswear category and everything that comes together So I believe that there is a real opportunity to make business out of it, and I'm convinced that with that business we'll probably even more than compensate the cost of this sponsorship. That's the target. This thing, Gucci Racing, will start with Formula 1, but it's also about an umbrella brand for any sport, whether it's tennis or other initiatives that Gucci will take. Okay? Um... And I can tell you also that from a cost point of view, from a condition point of view, I really made sure that the money we would invest in this thing is at the right level because I know very well the numbers. Thank you very much. and to be on a platform that will create vividness and presence of Gucci in an interesting manner because we are on the track, so we compete. There will be weekends where we win, there will be weekends where we lose and that's also part of the drama and part of the interest in such kind of thing.

In fact, among the key messages delivered by Armelle and by Luca, there is also the question of being disciplined in terms of cost, but also efficient. And I think that a message that has been already shared is that we have a work of selecting the investments which are delivering return. Reallocation of costs so that at the end of the day the A&P budget of Gucci will not be materially impacted by this investment that will be for sure absolutely productive and deliver high return.

Thank you Jean-Marc. So we'll now switch to Vika Petrova from Barclays. Vika, please could you open your mic?

Thank you so much for giving me this opportunity and congratulations on result. I have two questions. First is on Gucci sales densities and like-for-like performance. I understood you commented that it's up. Could you comment on sales densities in this context as well? And should we... Did I understand it correctly that you are likely to open more than 100 stores this year? My second question is... Closing them.

Closing them. Closing them. Not all.

Closing, closing, of course. And from our credit analyst, there is a question. With your, obviously, cash generation in place, do you expect any gross debt reduction, any buyback? And just to clarification for confirmation, when you talked about flattish third quarter, is it group organic, Gucci organic, or Gucci retail organic growth? It's a reference to Luca's comment. And my final just confirmation, are you keeping your guidance of old brands being positive in 2026, or it's now a group guidance? Thank you so much.

Sales density, of course, we're doing the work to sell more, sell more in full price, reducing the number of stores and the square meters. So, of course, one of our targets is to increase the sales density. And we are seeing some positive signs here and there that this thing is happening. Do you have a second question on cash? Cash?

On gross debt reduction, any plans to reduce gross debt and go through any buyback?

Yeah, it's already, you can answer to that.

I mean, we had, of course, a significant reduction in H1. In H2, you should expect a further reduction coming from cash flow generation.

You asked about the flattish Q3. This is what we see right now, but every day we fight to actually do better, but we see a kind of flattish Q3 for the group. Or as I said, maybe this thing is not going to be completely linear, but what matters is that at the end of the year... We are there where we have hoped and committed to. So that was the nature of my comment. And then you have another question?

Yeah, I went to it, yeah.

No, but you mentioned share buyback, I think. I think we want to be very clear. We had re-insisted on the capital allocation during the Capital Market Day. Today, the priority is to invest in our brands, to continue the deleveraging of the group. So at least for this year, there is no plan of share buyback.

And we now have a last question from Susanna Pusch, UBS. Susanna, please, could you open your mic?

Sorry, mine are a bit boring. The good questions are gone. So maybe the first one just on... Then not on Gucci.

Not on Gucci this time. Maybe change blind.

That would be a follow-up. So it doesn't count as more than two or three. Maybe the first question just on inventory. So... you've mentioned that you're still committed to the 1 billion reduction but unless I'm completely wrong I mean when I look at inventories in H1 as a percentage of sales they seem pretty similar versus last year so I'm just wondering if you know maybe there's something related to I don't know like store openings in jewelry I mean anything that kind of you know could be maybe inflating that number secondly again this is a boring one I'm sorry but a I think when I look at the numbers, the corporate and other costs went up quite a bit. So I'm just wondering, you know, is there any, I don't know, any kind of reallocation of costs that we should just take into account as we model going forward? And then, that is actually not on Gucci, but it's another follow-up. On the Q3 being flattish, and as you said, that's what you're seeing right now, can I just check, was it retail? for the group or retail and wholesale? Because, I mean, you're clearly doing so much better in Q2. So I'm just wondering what could be driving that expectation for Flattish and Q3. Maybe there is some wholesale timing or maybe you're just being cautious. So these are my two questions and the follow-up. Thank you.

You want to go for it?

Yes, regarding the inventory target, first it's important to remind you that this is an inventory target for our fashion and less good brands and it's from September 2025 to December 2026. So you cannot read it completely in the number and we are confident in delivering this target. That was for the first question. So you may have some increase in the other segments. But what we are working on is really to decrease inventory for the fashion and leather goods this year. But of course, we want to be more efficient going forward in terms of the amount of net inventory to sales. And I think it's something we mentioned during the Capital Market Day that over the next five years, we will improve sales. and decrease the percentage of net inventory to sales for the fashion and less the good brands.

This is the cost of corporate.

Okay, cost of corporate. Yes, we had an increase that is due to the rental that we don't have anymore on this investment that we did on real estate. If you correct it from that, it's roughly stable. The corporate costs are roughly stable.

So sorry, so to follow up on this, so we should forecast it sort of as a percentage of size as we look at H1, or is it kind of like a one-off? Just to understand how we should model that line going forward. On corporate? Yeah.

No, on corporate, I mean, those rental expense, we won't have them neither in H2. So basically what you see now is the cost of corporate going forward. We are, yeah.

All right, thank you.

I think there was a question about Q3 dynamic, if I'm correct. No one wants to answer.

We can, we can. We are fighting to answer. I'm just going to...

No, I think, no, you can answer, no problem.

I think, you know, as was mentioned by Antoine, there is a common base in Q3 that is much more demanding. We also know that in terms of product newness, you know, Gucci Primavera is rolling out in store as of the second part of July and we will have a strong demand. Thank you very much.

Thank you very much. That was very helpful.

Thank you, Lucas, Jean-Marc, Armelle, and thank you to all of you who joined us tonight. Of course, we are available to answer all your questions in the coming days if needed. And have a good summer.

Thank you. Have a good summer. Thank you.