Prada Spa Ord

Good day and thank you for standing by. Welcome to the Prada Group full year 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 need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 1 again. Please be aware that we'll take and answer one question at a time before moving to the next question. And please note that today's conference is being recorded. I would now like to hand the conference over to Mr. Andrea Bonini, Group CFO. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining Prada's Group's full year 2025 results conference call. This is Andrea Bonini, Group C financial officer, and I'm delighted to be with you again. I'm joined by Mr. Andrea Guerra and Mr. Lorenzo Bertelli. The agenda for today's presentation is on page four, and as always, it'll be followed by Q&A. As a reminder, during today's call, we may discuss forward-looking statements which are subject to risks, uncertainties, and factors beyond our control that could cause the actual outcome and returns to differ materially from such statements. Please refer to the disclaimers included on slide two of our presentation. With that, I will hand over to Mr. Guerra.

Hello, and welcome also by my side. Obviously, we are here today during a very peculiar moment, a period of turmoil in Middle East. We do not know what will happen, but we hope it will be short. And let me be, let me say something. Let me be very close to all our associates. and all our people on the ground today in Middle East, to all our stakeholders in the region, in this specific moment of prey, reflection and community, we're very close to all our people in the region. Having said so, and I think this is paramount, I would love to start off saying that 2025 for our industry has been a very challenging year. I can state and we can state that during the last three, four years, the industry lost something like one consumer out of five. In this long period, the Prada Group has been very solid. And not only for the past years, but also in 2025. Retail sales in 2025 have grown again throughout the year, mostly or mostly entirely again like for like, marking another plus eight at the end of the year. We've been able against strong comps of 2024 to keep Prada on a break even like for like, and most importantly, a sequential improvement through second half compared to first half. Miu Miu finished Q4 at a plus 20 on a plus more than 80% of a year ago. And it's obvious looking to the trend in the last four quarters that we have begun our growth normalization journey that will continue during 2026. 2025 has been for our both brands a very interesting journey. Why interesting? Because we were able to showcase a lot of novelties, a lot of new ways of doing things, utilizing new tools, really upgrading our capability on digital technology and artificial intelligence tools to do what? To become closer, to upgrade significantly product intrinsic value, to be sure to allow all our consumers to understand and therefore to tell them the stories around products that were coming out to the market upgrading significantly our hospitality inside the stores and outside the stores and in the redefinition of new stores flows. On the other side, always in this new normal, we have been very clear and very focused on enterprise products and ranges. During this year, we did not only perform solidly, but we continued investing on our people, on their know-how, on their motivation. We have continued investing on our strategic digital plans and AI tools. We continued investing over proportionally on desirability and awareness of our brands. And we have continued to invest over proportionally versus sales on our stores, to upgrade aesthetics, and even more important, to increase our hospitality standards. And even if the level of investments on all these cost lines have been over-proportionate, we were able to keep a steady profitability, which means that what we committed upon, which was being more productive and being more efficient, We have been able to do it in all other profit and loss lines. And do not forget, and Andrea will be obviously much more detailed of me on this, the amount of FX, headwinds, we have been living and we will continue to experience in 2026. Last but not least, we began during December our journey closing the acquisition of the Versace brand.