Prada Spa Ord

Good day and thank you for standing by. Welcome to the Prada Group first half 2025 results presentation. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to slowly press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 and 1 again. Please be aware that we will take and answer one question at a time before moving to the next question. Please note that today's conference is being recorded. I would now like to hand the conference over to Mr. Andrea Bonini, CFO. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining Prada Group's first half 2025 results call. I'm delighted to be with you again. Alongside me today are Mr. Andrea Guerra, Group CEO, and Mr. Lorenzo Bertelli, Group CMO and Head of CSR. Mr. Guerra will start today with highlights for the first half of 2025 and a business update, followed by Mr. Lorenzo Bertelli with an overview of our marketing activities and ESG initiatives. I'll then present our financial performance before Mr. Guerra signs off with some closing remarks. Before we start, please be reminded that during today's call, we may discuss forward-looking statements which are subject to risks and certainties and factors beyond our control that could cause the actual outcome and returns to defer materially from such statements. Please refer to the disclaimers including on slide two of our presentation. With that, I will hand over to Mr. Guerra.

Buongiorno a tutti. We've been very focused during this first six months. We've been working hard. For sure another complicated period for our industry. We as Prada are reporting to you what we feel being a solid and healthy set of numbers. Solid because yet we have been able to foster our relationship with our consumers worldwide and we've been able to register a double-digit growth, mainly almost totally like for like. We have scored a growth of 10% against the period for Prada of very strong comparison and a continuous journey for MiuMiu. We had a significant growth difference for Prada between the two semesters in 2024. We have just finished the toughest comparison. As I stated at the beginning, we have seen probably, and let me repeat, probably the worst. An industry on one side that is resetting after 20 years of almost constant growth, and on top of that, a cyclical downturn basically led by tourism. This should be quite a special period in this year. On one side, the evaluation. On the other side, geopolitical is now turning to the fact that there is less American tourists in Europe, and especially during spring, summer, they are fundamental for the luxury business. And on the other side, we have a complicated comparison with the huge spike of Asian tourism in Japan during spring-summer 2024. As a reminder, last year, Q2, Prada Group in Japan finished with a plus 65%. So it was a solid semester. Why healthy? Because on one side, I think we have been continuing working diligently on efficiencies, on productivity, on being able to increase our numbers per square meter per single people in the store. But on the other side, we constantly continue to invest on our people, on our brands, on our stores, on new collections and products. And at the end of all of this, we have been able to keep up with a strong profitability. So in one sentence, I would say, yes, it is tough, but so far we have been able to follow up on our long term journey. Business wise, looking at Prada specifically, I would give you three bullet points. The brand, the shows, image, foundations, pillars are all loved also in this resetting of the industry. Two, we have invested and working incredibly hard on new products and collections that we have been launching and launching right now. We feel that the product structure of these collections and the price structure of this collection with more stretching between entry price and higher prices, we feel that these collections are very correct in this moment of the industry. Three, we have been elevating our relationship with our consumers, our hospitality day after day. The last example of all of this, is the opening of our men's store on Fifth Avenue, which allows men to enjoy, invest, dress up on a kind of dream lounge where there are more than 250 SKUs ready for Make to measure and make to order. So really going through a journey of uniqueness and personalization. On the other side, Miu Miu. Miu Miu is on a journey. The link, the great deep link between the brand and the Miu Miu consumers is even stronger and deeper compared to six and 12 months ago. We had a very well-balanced growth between products and geographies. Huge investments and results are paying off. As we said, we wanted to balance and rebalance the European region, and that European mission is going on with great results and achievements. And I think that the symbol of all of this has been the reopening of our new Bond Street boutique. a store made of contrasts, post-industrial on ground floor, and a wonderful salotto club on the second floor, where you can enjoy all our unbelievable treats by our wonderful staff. Having said this, I will ask now Lorenzo to take over, talk about our brands in more deep, even giving you some update on our sustainability journey.