Kering SA ($KER)

So ladies and gentlemen, welcome, and thank you for joining us. I wanted to start today's event by presenting to you the team behind the preparation of the plan. So the people who will be leading its execution in the next years. So we have our group functions, our CEOs of the bank, our directors. But you know the transformation we're driving, it's not the project of one individual, it's a project of a group of an entire group. Our collective target will be to bring clarity and I would say, decisive action and to ensure that execution and not just vision defines our ambition. So I would also like to say how pleased I am to our Chairman, Francois-Henri Pinault, with us today. Welcome. Francois-Henri, as you know, after leading this organization operationally until September 2025, he has continued to strongly support us and in his new role, ever since, I would say. So that's where we are. We will start the thing. So thank you, ladies and gentlemen. Please take back your seat, and let's start the journey. So I have to say that to anticipate that this thing will last probably a couple of hours. So make yourself comfortable, fasten your seat belt, enjoy the flight of the caring hall. Good. So it is a pleasure for me to host you in Tuscany. This is a region that is not just a backdrop, but I would say, the beating art of our system. This is where our leverage cut, where our creations basically take shape and where Saga meets technology and where the heritage and creativity fuse into product. In other words, Task is the bidding heart and the essence of who we are and a reminder of what I would say also we must protect. 7 months ago, I joined Kering, and I did it with humility, I think, determination and a deep sense of responsibility towards all the stakeholders, including, of course, the media and investors. I are fully aware of the challenges we are facing, but just as convinced of the strength of our houses, our talent and our ability to reinvent ourselves, I would say, once more. Kering is not just a company. It is one of the most remarkable entrepreneurial success stories in Europe and not only in the luxury industry. It is a success that is built on the boldness and I would say, long-term mindset of the Pinault family and of all of those who have supported and surrounded them over the years. 25 years ago, we were a French retail group. Today, we are a global luxury powerhouse. And this transformation did not happen by chance. It happened because they dare to take risks to believe in creativity and scale it. When we acquired Gucci, a few, I would say, could imagine what it would become. Gucci has multiplied its size by nearly 10x and ranks among the most powerful luxury brands in the world. And the same entrepreneurial spirit drove them to invest in Saint Laurent, Bottega Veneta, Balenciaga, brands that were acquired at below EUR 100 million in revenue and each one now going into the billions. Today, we operate at the heart of the global luxury market, serving clients whose expectation in quality, creativity and meaning are rising and also changing. Our houses span the key pillars of luxury, leather goods, ready-to-wear, shoes, jewelry, eyewear and beauty with one consistent ambition to create products and experiences that combine craftsmanship, desirability and responsibility. But to me, luxury is not an end in itself. Everyone in our industry talks about luxury. For me, beyond desirability, the world that truly matters is excellence. Luxury is a perception. Excellence is a discipline. Luxury can be claimed. Excellence must be earned every day in every detail across the entire value chain. At Kering, excellence will mean uncompromising creativity, of course, but also flawless execution. It means exceptional products, but also industrial rigor, consistency and responsibility. It is excellence in craftsmanship, in quality, in service, in sustainability, in technology and decision-making. Excellence is what legitimizes luxury. It is what creates trust with clients, pride for our teams and durability and sustainability for society. This is what truly unites and should unite our houses, not a single style, but the shared culture of excellence. We give each house, of course, the autonomy to express their vision while providing the strength, the expertise and the discipline of the group. But even the strongest stories reach turning points. And today, we are as one of them. After a decade of exceptional growth, bringing in, I would say, new consumers and consumption habits, the personal luxury industry has entered, in our opinion, into a reset. Since 2023, the market has been flat to slightly negative. China contracted by around 20% over the same period, and the rebound has not yet materialized. In this context, Kering has been more severely impacted than most of its peers and the financial consequences have been significant. Between 2022 and 2025, Kering revenues declined by EUR 5.7 billion, while EBIT margins dropped from 27% to 11%. Return on capital employed collapsed from more than 20% to 6%. Net debt moved from 0 to around EUR 10.5 billion before decreasing approximately at EUR 8 billion at year-end 2025. At the same time, our business has become structurally unbalanced. Fashion now accounts for more than 80% of sales with Gucci alone representing over 40% of the total. Some brands have seen a decline in desirability, while others have not scaled despite their, I would say, creative potential. In a nutshell, a model that worked for a decade is no longer effective. For us, growth will come first from gaining share, restoring pricing power and executing better than our peers. This is, first, a market share game plan, independent of any upside from a market rebound. Over the 7 -- I would say, the last 7 months, we have completed a transparent, brutal and share diagnostic and decided a targeted reset of our foundation, organizational, operational and financial to restore our balance sheet and to rebuild resilience, creating, I would say, the conditions for sustainable performance. And now we are moving to reconquering mode. not promises, but proof points already reshaping how Kering operates. First, we simplified the organization. We launched a transformative evolution of our leadership model, more accountable and designed to accelerate decision-making. Today, the organization is structured around 4 strategic businesses: Kering fashion and leather goods with Gucci, Saint Laurent, Bottega, Reneta, Balenciaga, McQueen and Brioni operating with focused brand stewardship and dedicated growth levers. Second, Kering jewelry, bringing together Bouchon, Pomelato, Chile and Dodo, consolidated to accelerate scale, vertical integration and global expansion. Third, Kering eyewear with its portfolio of fantastic 15 brands. And Kering Next, this is our innovation engine incubating tomorrow's growth pools, hosting, you will see Ginori, Beauty, longevity and Wellness and House of Wonders, which I will come back to. Behind these businesses, we are building a streamlined group platform structured around 5 hubs. Industry, that's the first. sets common industrial rules, planning frameworks and shared foundation at the group level across purchasing, manufacturing, supply chain, quality as well as research and development, while houses remain fully responsible for creative direction, product development, go-to-market and, of course, brand expression. Second, client provides shared data, tools and client intelligence, enabling houses to faster and better commercial decisions from creative studios to client link activation across marketing, merchandising, sales NOP, sales and operational planning, which is sales NOP without -- I would say, as important for me without centralizing execution. Then you have technology out of the 5 apps, the third one. This is the group shared tech hub, combining a cloud-native data architecture, augmented digital twins and agentic AI to continuously streamline operation, enable predictive insights and support faster, better informed decision across the whole caring. Fourth, very important, sustainability is, my opinion, a nonnegotiable execution discipline across all decisions from design and collection planning to sourcing, operations, capital allocation and governance with measurable KPIs and no trade-off accepted between sustainability and performance. And last one, our support functions that they are partnered with the houses and business teams to bring rigor, clarity and consistency to decisions, ensuring the group's priority are embedded in the day-to-day execution. Now this new organizational model is changing the way we operate. The Executive Committee now meets every 2 weeks with a focus on both strategy and operations. Decisions are taken faster. Ownership is explicit, follow-up is systematic and accountability is uncompromising. In parallel, we have aligned on a common KPI framework to track performance, which is reviewed monthly. Second, we reinforced the balance sheet. In 2025, we acted decisively by monetizing assets through partial sales of real estate and by postponing the put call option for Valentino's acquisition, resulting in a net debt of EUR 8 billion at the year-end, as I said at the beginning, so down EUR 2.5 billion year-on-year. This amount excludes the EUR 4 billion cash inflow from the L'Oreal strategic partnership received 2 weeks ago as well as the Monte Napoleone real estate operation recently announced. This confirms that our deleveraging is firmly on track, and our ambition is to move toward a net debt-to-EBITDA, I would say, around 1.5 by year-end 2026. Third, we are rebuilding our retail network, so fewer, better, stronger. By year-end 2025, retail included e-commerce accounts for -- let's say, I would say, including e-commerce accounts for 76% of group sales and even 86%, excluding Kering eyewear, which has a different structure of its distribution by nature. That's the result, and I want to say it, of a successful long-term strategy to regain control over distribution and reinforce exclusivity. Now that wholesale rationalization, I would say, is largely completed, our focus shifts to the retail network with a shared and centralized practice and governance, balancing group optimization with the brand needs. At the same time, we had to resize and strengthen our footprint. The network expanded too much impacting productivity with sales density, I would say, well below the benchmarks. So we launched a structural reset, closing or transforming low-return stores, renegotiating leases and rebalancing wholesale. By year-end 2025, again, our retail network stood at 1,719 stores, which is a net reduction of 75 versus last year's. In 2026, we will accelerate to at least 100 net closures with more, I would say, under review. We will close the most dilutive doors and use, I would say, a city-by-city format-specific recapture plan so that the stronger store absorbs the activity of the one that we close, protecting the P&L and lifting sales density. Net-net, fewer doors, better doors, higher productivity. In parallel, we are adopting a more strategic approach in terms of store clusterization, focusing on client experience, service excellence and business potential in each one of the locations. Between now and 2030, we have locked in a CapEx to renovate up to 2/3 of our boutiques. We are also investing selectively in high-impact flagship, such as Bottega Veneta, Bangkok Central Embassy or the future Gucci Montenei in Paris, which are designed as immersive brand environments that reset expression and upgrade the client experience when we feel it is necessary to make a statement on the ambition we have for the brands. Our new real estate strategy will deliver higher sales productivity and stronger conversion. but also it will act as a media and the cultural assets, amplifying brand desirability far beyond the sheer size of the footprint. Fourth, we are taking control of inventory. The challenge is not only the volume, but also the quality of the inventory. We created a multi-brand task force and initiated a structural reset that is already visible. Our target, EUR 1 billion reduction within 12 months starting last September. And over time, a group operating with 2/3, I would say, even more arm of the current stock ratio. But this is not a one-off reduction. It is a fundamental shift in how we manage inventory underpinned by a complete revision of our governance, processes and tools. We are implementing advanced capabilities such as sales and operation planning and AI-driven forecasting to anticipate demand sooner and run a leaner, more productive inventory. Over time, this will bring us, I would say, closer to the best-in-class industry standards. This discipline is not only critical for performance, it is also central to our sustainability commitment, producing less and producing better and to a much more rigorous management of capital employed, ultimately supporting, I would say, stronger returns. But we will come back to this a bit later. Fifth, we began rebuilding pricing and product structure. We identified a misalignment between perceived value and pricing, which was impacting profitability and brand equity. Across the group, full price sell-through was below expectation, while off-price penetration had reached level we considered unsustainable. So to reinforce pricing power and restore clarity, we launched a comprehensive reset based on elasticity and client value. This includes simplifying SKU architecture. For example, Gucci reduced its SKU counts, I would say, roughly 20% versus average in the past years. redesigning product grids to sharpen assortment strategy and deploying AI-enabled tools to optimize pricing and allocation. In parallel, we are increasing investment in product quality and craftsmanship to strengthen perceived value and support our long-term pricing power. But I will come back to this more in detail later when discussing about our brand strategy. So where this approach is, I would say, really embedded brand by brand. Sixth, we have strengthened our marketing productivity. We are correcting structural imbalances in marketing spending, where cost reduction had disproportionately impacted on working media while nonworking and structural costs remain very, very high. We are optimizing our events and flight activation, reviewing our agency contracts, tightening asset creation planning and rebalancing budget toward high-impact media. In parallel, we are exploring AI adoption to structurally improve effectiveness and cost discipline without degrading our creativity and client experience. These actions of efficiency and improved marketing ROI will already generate benefits this year and are expected to represent roughly 1 point of EBIT margin starting next year, fully reinvested in our houses. And seven, finally, 7 in 7 months, we recreated the condition to reboot Gucci. Even though Gucci, I would say, should not carry the whole group alone, it remains a brand poised to play among the leaders of our industry. That is why it became one of my priorities in my first months together with Francesca. Gucci had lost some of its shine and performance. Performance has deteriorated, as you know. So we acted, I think, decisively. We renewed the leadership team, restructured the operating model, clarified business priorities, presented Dana's first collection and reactivated core clients. These actions are already translating into tangible early signals with sequential improvements in performance and a clear trajectory emerging, I would say, if you look at the numbers quarter after quarter. Gucci's recovery will be real because it will be structural. I will come back to Gucci in more detail as well to our other brands. But before that, let me take you one level up and share how these actions are reshaping the group as a whole. These 7 moves are not isolated decisions. They are opening the, I would say, moves of, I would say, a much deeper transformation. The real question now is how we turn this progress into a durable competitive advantage and how we build a group that grows faster, performs better and stays ahead in an industry that is being rapidly redefined. And this brings me to the next chapter, how we will build the next Kering. We are pursuing a strategy that is, I would say, bold, but actionable, that's important, and anchored in disciplined execution. It is a transformation designed to secure Kering position as the undisputed challenger in luxury industry. I use the word challenger deliberately, not because it's fashionable, but because it reflects a mindset. Leaders tend to protect what they have built. Challengers focus on what will still need to be invented. They question habits, move faster and remain uncompromising in execution. This is a mindset we want in Kering, one that allows us to outperform, to innovate and to capture opportunities others do not see or cannot size. And it's rooted in our belief that we should stick to the idea that we are building a group well anchored in true luxury, the luxury that starts with creativity, craftsmanship, cultural relevance and very important, product excellence. This is what gives our houses their legitimacy, as I said at the beginning. And it's the foundation on which everything else stands. True luxury will continue to drive the growth, but we want to take the opportunity to create a system that better understands what next luxury will be, the luxury that embraces new technologies, new client expectations, new markets and new forms of engagement, a luxury that is more connected, more intelligent, more experiential, a luxury that innovates, that stays ahead of culture and ahead of time. And all of that, of course, before the others. True luxury and next luxury frame the direction of the group. They define what we must protect and amplify and where we must innovate and accelerate. They are the lens through which we drive and we will drive our strategy. From these convictions, flow our 2 priorities of the group. First, reignite growth by restoring desirability as its source, creativity, cultural impact and product excellence. Second, boost efficiency to build a higher-performing group, which is leaner, faster, more integrated and able to scale what truly matters across our houses. These 2 dynamics move together and fuel the true and next luxury and strong economics fuel both empowering better creativity, better products and superior client experience. So let me begin with the way we intend to reignite growth. Kering portfolio was particularly exposed to the luxury downturn due to, I would say, an above-average reliance on aspirational customers. Over time, the group brands have narrowed into more polarized categories and occasions focuses, overexpanded retail footprint, as we said before, and became too dependent, I would say, also on designer-led steering. Together, these factors increased sensitivity to fashion cyclicality, weakened the client engagement and eroded desirability. The next chapter of our history is about building a more resilient and complementary portfolio of brands, expanding market coverage while reducing internal overlap, both within each house and across the group. but rebuilding growth requires a framework, one that restores desirability and it source and translates into growth that is more resilient, more predictable and very important, also value accretive over time. This framework is built around 4 value-creating levers. Let me start with the first one, which is a consumer-centric brand strategy. We are building desirability by putting the client back at the center and aligning brand and product and execution around what drives emotion and purchase. At the group level, we have instituted, and this is very important, a consumer-centric portfolio framework that clarifies the role of each house, sharpens differentiation and removes duplication. For the first time in Kering, we have developed together, together with the team and with the brands and under the leadership of each one of the CEOs, what we call a brand playbook. This goes beyond the brand books we already had, which define the brand's identity, the codes and creative territory. The brand playbook takes us, I would say, one step further. It is a detailed document touching all business dimensions where we formalize the strategy and the action plan. a sort of contract between the houses and the group that everyone has agreed and signed internally. The outcome is a clear brand positioning, greater consistency across all the touch points and the higher execution standards with measurable synergies, also a common segmentation of businesses and consumer, a common set of KPIs and therefore, a well-defined path to maximizing the full potential of the Kering portfolio. This consumer-centric approach is underpinned by a strong focus on retail excellence, ensuring that in-store execution, service levels and brand expression consistently translate strategy into compelling, high-quality client experiences. At the house level, this translates into ability to decide within a frame and full accountability of the business owners, sharp propositioning anchored in defined client targets, well-prioritized categories, value-driven pricing and tailored go-to-market plans built around end-to-end client journey. This is our first formal brand portfolio strategy, not a theoretical exercise, but a decision system that guides creative direction, assortment, pricing, client development and media house by house. The objective is very, very clear to everybody, lift relevance and mix quality, drive higher full price sell-through and compound margin over time while maximizing the portfolio's potential. But restoring desirability is only the first step. Client intimacy is how we make it last. Our client strategy is built around 3 segments, which -- with distinct roles, but a single goal, build a more stable, more valuable client base over time. So we have first top-tier clients. There are few, but disproportionately powerful. They represent 1/4 of luxury spend and keep growing even when the market slows down. Our ambition is to expand high-end offers and upgrade experience to double the business with top clients. Then you have core clients. They are the backbone of the luxury industry, sometimes forgotten, steady, consistent and resilient across cycles. Here, we are refining our approach to loyalty programs and to retention, sharper recognition, more relevant assortments and the stronger continuity of service to grow frequency, share of wallet and long-term value. Aspirational and younger clients, this is the third category. They remain critical for renewal, but they are structurally more volatile. Our approach is selective and will be selective and disciplined, drive desirability, cultural relevance and targeted recruitment. Brands like Balenciaga, for example, they will play a key role here as a cultural entry point with the ambition to increase by at least 30% recruitment over time while protecting, of course, brand equity. Across all segments, growth comes from quality and stability of the client base. This is why we are investing in the most sophisticated database on luxury consumer that will include advanced CRM techniques powerful loyalty tools and access to unique experiences, a single client view, more targeted client telling consistent service standards everywhere and experiences designed to build lifetime value, not one-off transactions. Client intimacy is not about doing more for everyone. It is about doing the right things for the right client consistently at scale at the right moment. But precision in client engagement can only deliver value if the product itself is right. across all houses, we are resetting collection architecture to restore clarity and impact. So fewer, stronger products and a clean balance between icons, heroes and essentials and explicit roles for each one of the segments. This discipline directly addresses the price versus sell-through equation where we have historically lost efficiency. So icons, the first category are the brand symbol of authority, high pricing power, high sell-through, exceptional materials, and tightly controlled supply to protect long-term desirability. Then you have the heroes. They translate creativity into commercial momentum, the seasons core proposition that drives traffic and carry the emotional impact. And then essentials, these are high rotation functional products designed to deliver structurally high sell-through, build loyalty and support productivity across the network. This clarity is accelerating the business. By simplifying decision and sharpening priority, we are cutting time from runaway to store with the ambition to roughly double speed to market while improving consistency and quality. This strategic reset translates into clear category priorities and, of course, associated investments. Building a more iconic leather goods offering across the portfolio, driven by a strengthened Gucci proposition and expanded high-end offer at Saint Laurent and Bottega Veneta and the continued momentum of Balenciaga icons. Then we have accelerating men, building on Saint Laurent's strong potential on the category while scaling already visible traction with double-digit growth in men's ready-to-wear projected for the group by 2030. Consolidating the Classics territory, Classics by elevating Brioni's formal wear offer and expanding our comprehensive daywear wardrobing offer at Gucci, at Saint Laurent and Bottega Veneta, complementing the more seasonal collection. Fourth, unlocking jewelry growth with the ambition to double the jewelry business by accelerating pure jewelry Maisons and scaling fashion jewelry across the group, starting with Gucci. Ultimately, product excellence will be measured through improvements in full price sell-through with the objective of structurally increasing it by around 20 points between 2025 and 2030. But even the best product needs the right market to scale its potential, which brings me to our final lever, which is new geographies. Some markets demand more than local execution. They require a coordinated group level approach, sustained capital commitment and strategic patience over time. Greater China will remain a critical market for luxury, but it is entering a new phase in our opinion. Growth will be more selective, more domestic, more experience driven, and I would say also more digital. Success in China will depend less on expanding footprint and more strengthening brand desirability, cultural relevance and execution excellence. Our priority is to rebuild resonance with Chinese clients. This means a renewed China-specific brand narrative, dedicated campaigns and shows, a more local talent strategy and a fully integrated 360 activation designed for Chinese audiences. At the same time, we will sharpen our offer by developing hero product category aligned with local taste and demand. In support, we are committing in the plan a double-digit increase in marketing and commercial activation budget for our leading houses in China to accelerate awareness, quality reach and conversion. We are also investing to understand and serve the market better. Through Cairn Craft, a creative residency for artisanship, fashion and technology launched in partnership with Shanghai Fashion Week, we are building a long-term creative and cultural bridge between China and Europe to nurture next-gen Chinese talent and deepen our local insights. Finally, we will manage our retail network with greater discipline, rightsizing the footprint in China by around 130 net closures by 2030, concentrating on high potential accretive location and ensuring that every store delivers both brand elevation and economic performance. Beyond China, a new cohort of high potential markets is structurally gaining relevance. This emerging 6 pack includes the Middle East, notably the UAE and Saudi, India and fast developing Southeast Asian countries, Thailand, Vietnam, Philippines, Indonesia, but also Mexico, Brazil and new markets in Africa with Nigeria at the forefront. Though it's heterogeneous, I would say, in a different stage of development, this market share common supportive underlying dynamics, rapidly expanding affluent population with a growing influx of young consumers first entering market, the luxury market and in many cases, additional momentum from rising tourism flows. Taken together, this market represents a major growth relay for our brands. Today, they account for an estimated EUR 34 billion in luxury personal goods compared with EUR 42 billion of Mainland China. At the current growth trajectories, the combined 6 pack is expected to reach a size comparable to China in 2035. There is an opportunity for the group to play a catalytic role in the markets, particularly where scale will take time to build. Our presence of the regions will lead the coordinated group level approach to accelerate growth in those markets. Together, these 4 levers realign brand strategy, client management, product architecture and geography focus around a single objective, improving sell-through, mix and capital efficiency. They restore discipline in decisions, what we design for whom, at what price and where we invest, reducing volatility, reducing markdown exposure and execution risk. With this framework set, let me now show how each fashion and leather goods house is executing it to restart growth, of course, beginning with Gucci. [Presentation]

So as an Italian native, it's very easy for me to understand that Gucci is more than a brand. It is one of the most admired expressions of the culture of this country. If you ask ChatGPT what's the most popular Italian brands, it will tell you Ferrari, Gucci and Nutela and not necessarily in that order. This is the reality. Just try. We're talking here about an institution almost a monument. And I say this for 2 reasons because they tell us a great deal about both the challenges and the opportunities that lie ahead. The first reason is awareness. Based on our data, Gucci is the second most well-known luxury brand in the world. And awareness is something you build with money and with time. Two things you cannot compress. Everybody knows Gucci. That's a huge competitive advantage. We do not need to invest to be known. The second reason is desirability. Gucci remains in the top 5 in desirability worldwide, down from #1 a few years ago. That is the place we want to reclaim. Awareness is about money and time. Desirability is about doing the right things. But we must recognize with humility that over the past years, we have not always done the right things. created direction lack stability and clarity. Our offer became to uneven. We sometimes diluted our identity by trying to be everything for everyone. We discussed a lot of times with François-Henri about this. In some regions, we overextended our distribution, and we were not always consistent in the quality and execution that clients expect from a house like Gucci. We acknowledge these shortcomings, I can tell you. And we have already begun to correct them with focus and discipline. Gucci is one of the best reflections in the luxury industry of what this country stands for, warmth, color, sexy, witty, also cheeky. -- with all its paradoxes, it's contradiction, it's masterpieces, it's miseries. Sorry, but Gucci is not vanilla ice cream. It is spicy, sometimes better, sometimes super sweet. And that's what it makes it totally unique and precisely what always made it one of the most beloved luxury brands in the world. The brand has suffered in recent years. It has been misinterpreted, but we understand Gucci, I can tell you. And we know what we have to do. As a team, we went back to the essence of the brand and to what people expect from it. In the U.S., people say, I feel Gucci to mean they feel good, attractive, optimistic, upbeat. In short, Gucci is a feeling, not just a logo. And this is what we need to give back to people. We call it [ Renachimento ] Gucci. If we want to relaunch Gucci, desirability is the starting point. It is the foundation on which everything else rests. Our priority is to make Gucci unmistakable again, not louder, not more complex, simply unmistakable. This work has already begun. We are refocusing the brands around fewer narratives, but narratives that are sharper, stronger and more coherent. Gucci's recognizability is one of its greatest assets. And we are now codefying our signifier with a far greater discipline, GG, Interlock G, Web, Flora, Bambu, Horsebit, Jackie. In one second, you must know it is Gucci. And that does not mean covering the world in GG. Being unmistakable can also be quite discrete and refined, expressed through craftsmanship and identity codes that are immediately Gucci even when they are not there and they are just subtle. We are activating this renewed identity through La Gucci Vita -- this is our culture expression that turns codes into culture from Palazzo Gucci to Villatura, from sport to a femoral celebration and Generation Gucci. Each of these territories is already bringing the Gucci feeling to life and projecting it back into the world. This is how Gucci becomes a missable again. icons made recognizable, culture made actionable and desirability made timeless. Reinventing our heritage is also, I think, essential. Our heritage is not meant to be preserved on the glass. It must be reinterpreted boldly with modernity, clarity and coherence. This evolution is underway. We are injecting newness into our most iconic shapes and signature, Francesca and Dena, as we did it, for example, with the latest Jacky and as we will do with future expansion such as, for example, the Bambu, which I saw. This is how we reconnect Gucci with the stronger roots and make those roots relevant again. And we do it with ambition. We aim to double the contribution of icons in women's handbags by 2030. Icons should represent around 20% of leather goods, up from 10% today. We will do it without losing as this important message, our fashion authority because at Gucci heritage and fashion must coexist. Restoring desirability requires also restoring strength in our product offer. And I think that begins with clarity. We are rebuilding the entire architecture with a structure that is consistent, legible and modern. We have already reduced the number of SKUs, as I said at the beginning, by roughly 20%, a concrete step that simplifies the offer and reinforces clarity, coherence and impact across all categories, and we will continue. At the top of the product architecture sits now Gucci So. This is the highest expression of Gucci, craftsmanship and exclusivity. At the center, we are establishing a core offer, which is coherent, a coherent wardrobe that is already gaining tractions in the stores. Core will expand its role structurally by 2030, anchoring Gucci in a more coherent and more profitable architecture. In leather goods, we are focusing on fewer families, stronger identities, more functionality and higher quality. We are anchoring the core of the business in a strong mid-price proposition between EUR 2, I would say, EUR 2,000 and EUR 3,000, elevating the top tier with richer materials and a distinctive details and redesigning the entry level without compromising quality. We are also rationalizing the carryover assortment by around 20% by 2030. The ambition is to deliver more than EUR 1 billion of additional revenues in the leather goods by 2030, powered by a more distinctive iconic offer. In ready-to-wear, we are rebuilding the silhouette, of course, with Demna and the team with a stronger stylistic intent. We are improving fit, proportions and construction and bringing back reignitability in every single piece. In menswear, we are constructing a modern wardrobe anchored in refined essentials. In shoes, we are rebalancing the offer around lifestyle models, refreshing iconic shapes and tightening the architecture across tiers. The ambition is to grow ready-to-wear and shoe by more than EUR 600 million by 2030. In jewelry and watches, we are refining the offer, unifying codes and elevating the storytelling. Our objective is to grow jewelry and watches from EUR 200 million to around EUR 700 million, of course, creating EUR 500 million of additional revenues and making it one of the most dynamic engines of Gucci next chapter. In watches, we will consolidate our proposition around pillar lines with a particular emphasis on the EUR 2, EUR 3,000 women's jewelry watch segment. So less noise, more coherence, less spread, more impact. I want to talk about quality and pricing. Clients notice quality. They notice, of course, inconsistency, and they remember. they remember. We are elevating quality everywhere and putting the money for it. materials, manufacturing processes, suppliers, finishing. Bags are becoming more functional. Ready-to-wear now has better cost structure and better fit. Shoes offer great comfort and durability. The value proposition is visible from the moment the client touches a product. This quality upgrade will be very, very meaningful. Across core categories, full price sell-through will improve by around 20% 20 percentage points on average. In parallel, we are renewing the price architecture to ensure that perceived value and price remain aligned in every region. Quality and clarity in pricing are essential, of course, as you know, to rebuild trust and trust is essential to rebuild desirability. All in all, talking about a more productive network and a rebalanced geographical footprint, I said before, all in all, we had too many stores, too much access, too much discounting. We have begun to correct all of this. We are rightsizing the network with fewer stores and better stores at Gucci. Worldwide, 2/3 of the network will be refurbished or relocated. Overall, selling space will decrease by around 20% and outlets will be reduced by 1/3 to protect brand equity and full price performance. Across the brand -- sorry, and the board, the footprint will be streamlined by around 1/3. This is a distribution model built for clarity, quality, productivity with sales density that are meant to double from now to 2030. Desirability is not the same everywhere. In the U.S., Gucci regained momentum because the brand is understood. Its identity resonates strongly and its fashion authority remained relatively intact. Clients there instinctively grasp what Gucci stands for. And this clarity fuels both engagement and cultural relevance. We are using this renewed momentum as a springboard to strengthen our position in other regions where Gucci desirability often follows the cultural waves that begin in the U.S. In Asia and especially in China and Korea, desirability weakened because our discipline faded. There, we will fuel desirability by shifting to high-yield activations, culturally relevant storytelling and high-touch client engagement. Across Asia, we are ramping up new collections and reinforcing core icons, pairing this with tighter distribution and improved clienteling. Everything I described depends obviously on execution and the execution begins with the client. Gucci should become and is becoming a truly client-obsessed organization with a very precise understanding of who we need to win now. We are reconnecting first with fashionisters and opinionated clients. the style leaders and cultural voices who reignite fashion authority and desirability at the top of the conversation. And as the momentum builds, we are earning the loyalty of more discerning buyers, clients who expect quality, coherence and longevity across categories. To support this, we are embedding a customer-first mindset across everything we do, merchandising, assortment, pricing, clienteling and content, all guided by sharper segmentation. So data is becoming, in this case, I would say, an advantage. Our AI-powered synthetic customer is helping us sharpen buys, allocations and client action with a far greater precision. Clienteling is evolving, too, with hyper-personalized rituals in the stores, deeper outreach, curated appointments, tailored looks and more thoughtful post-purchase journeys. Assortments are being constructed with a more explicit use and a more legible codes so that recognition converts to purchase in seconds. Targeted acquisition programs are bringing new audiences into the brand and expanding them into multi-category clients. And at the very top of the pyramid, we are creating exclusive experiences for our most engaged clients with curated drops, made-to-measure propositions and privileged access to Gucci's cultural territories. This is what success looks like, stronger retention, higher value per client and the client base that compounds over time. Retention is also improving significantly in the plan, and VAC contribution is progressing towards the 25% threshold that will anchor quality growth over the long term. In parallel, we are simplifying the organization with fewer layers, better defined roles and faster decision. Agility is becoming a core principle with more test and learn, faster cycles and teams that move at the right pace. And importantly, this new operating model is already delivering real speed. In the last development cycle, we reduced the time needed to design and produce a collection by around 6 weeks, right, Francesca. Technology reinforces the shift. Gucci is becoming the group's first laboratory for innovation in AI and client intelligence. New tools are being tested and refined here before being scaled across Kering. We have already streamlined structures and refocused talent and product, client and execution. Execution is how we rebuild credibility. Gucci does not need to be reinvented. It needs to be refocused, reanchored and repositioned. We are not building a new brand. We are unlocking the extraordinary potential of the brands we already have with coherence, clarity and discipline. This is the meaning of Rennacmento Gucci, restoring desirability, rebuilding clarity, delivering results. We feel Gucci today, and we want the world to feel it again. today stands as a brand of exceptional desirability. This is what we see from the number, distinctive and deeply anchored in its Parisian couture heritage. The image is powerful and refined. And I'm saying that on data, not just gut feeling, built on instantly recognizable codes. Saint Laurent is part of the fashion aristocracy because of its history. Saint Laurent is sharp, is well positioned. We know it again on the numbers. I think nobody will argue if I say that Saint Laurent was and is still today a fashion authority. It enters this next phase from a position of strength with a solid foundation to scale and reinforce its business relevance. Saint Laurent does not need to be redefined or to redefine what it is. What it needs to do is to magnify what already makes Saint Laurent pretty unique. Our focus and enablers are, therefore, very well defined. Saint Laurent has one of the richest reservoirs of authentic icons in the industry, a wardrobe of timeless signatures the Maison truly owns such as, for example, Takeido. The next chapter is how to reawaken and reinvigorate these icons to transform them into iconic products that go beyond fashion cycle, give them renewed visibility, sharpen the storytelling and rebuild desirability over time. And we are already seeing proofs. The 2026 relaunch, for example, the Mombasa handbag originally introduced by Tom Ford in 2002 is already among the top 5 best-selling lines in our flagship stores. Our focus is on sustaining this momentum through a broader, stronger and more diversified portfolio of icons. In leather goods, these icons products should represent around 30% of the revenue in 2030. Leather goods is a strategic key pillar for Saint Laurent and will continue to be developed across the full value ladder with a sharper focus on top clientele. The offer will be enriched, adding more functionalities and higher quality while continuing to nurture the accessible entry segment. Handbags will play a more central role in communication and in brand expression, reinforcing their place within the Saint Laurent silhouette and fashion image. This effort is supported by a strengthened design organization in leather goods and accessories. Quality standards will be further strengthened towards through high-end positioning and the ambition is to increase by 40% women's handbags revenue by 2030, right, Cedric. Men at Saint Laurent as, we think, a significant untapped potential. The next phase is to make men a true pillar of the Maison. We will reassert men offer, building on momentum already materials that's we see it. We have double-digit growth year-to-date in ready-to-wear, luggages and shoes. The men's studio has been also strengthened with key appointments. In addition to the show collection, we are working towards the introduction of a new men's precollection, reconnecting Saint Laurent, Prêt-à-Porter routes, more wearable, more versatile with a compelling value proposition. This push will be supported by dedicated campaign ambassadors and high-impact activations. We will more than double the segment and make it a core engine of Saint Laurent scale and desirability. Saint Laurent has a unique opportunity to deepen engagement with its existing clientele and expand its reach to a broader audience. That's what we know. And the top of the pyramid, our priority is actually to grow share of Wardrop. Saint Laurent already owns strong equity in occasion wear, built under the vision of Antony, Antony Vacarello over the last 10 years. We will build on this trend to expand the full 24/7 wardrobe in women's ready-to-wear and shoes with greater season-to-season coherence and sharper brand recognizability. For VICs and core clients, we will drive stronger conversion through a full wardrobe, full category approach, reinforcing core pillars such as women's and bags and continuing to strengthen preceed quality. At the same time, we will accelerate recruitment with a more compelling accessible offer, leveraging to proven strength of eyewear and fragrance to broaden brand resonance, scaling small leather goods, accessories and lifestyle. We will also reinforce jewelry, as a true growth engine with the business set to triple by 2030, building on the house heritage, especially in custom jewelry and the group ability that we are building. In parallel, we are targeting a doubling of the VAC by 2030 to reach 25% without alienating the aspirational clients by having the objective to achieve more than EUR 500 million sales in an entry price category. Today, Saint Laurent image presence and sales remain predominantly Western-centric. In Asia and particularly in China, we're still subscale relatively to the size of the opportunity. The next phase is about amplifying Saint Laurent global presence with a strong and deliberate acceleration in Asia with China, South Korea and Japan as the key priorities. We are doubling marketing investments in the region, supported by more locally relevant communication. A brand show in Asia, right, Anthony, will soon mark a symbolic and visible shift in the brand's global presence. We will strengthen our talent plan to build influence and proximity in the region. Commercial and product activation will become more frequent and better tailored to local needs, starting with key moments such as GG. And we will reinforce and continue to reinforce brand expression in store, accelerating the rollout of our new retail concept. So over 1/3 of APAC stores within 12 months versus less than 20% today. Thus, we are building the conditions to double the business in Asia by 2030, driven by sharper relevance, higher visibility and a step change in execution, so that Saint Laurent speaks China and China recognizes Saint Laurent. In short, Saint Laurent path towards and forward is not about transformation. It is about magnification in a way. It's about magnifying Saint Laurent, magnifying iconic global relevance, all while remaining, of course, Saint Laurent. [Presentation]

Bottega has built a truly distinctive position in luxury, defined by an ethos of discretion, restrains and self-confidence built on Italian craftsmanship and defined by Intrechato iconic signature. The house has turned the position of global leadership in leather goods. Today, Bottega is one of the most desired luxury brands among those who truly know. The next chapter is about scaling this deep luxury without compromising its essence under the creative vision and leadership of Luis Procter that is today with us. Discretion is our code, but discretion does not mean to be invisible. To recruit next generation of clients, especially in China, we must increase visibility by positioning Bottega Veneta as the ultimate symbol of luxury craftsmanship in leather goods without ever and repeated, ever compromising its brand expression. We are accelerating the pace, a higher number of shows and high-impact global events and a continuous culture pulse. Venice will be firmly anchored as the house culture platform through partnerships and citywide activation that got the brand and its unique heritage. Communications will gain impact and coherence with stronger campaigns across channels, including social. At the same time, the house will continue to develop targeted culture and artistic partnerships carefully aligned with its goes. At the end of the day, Bottega Veneta should rank among the top 10 luxury brands in brand equity. That's the target. Looking ahead, growth will be driven, I would say, less by geography than by Bottega's ability to connect with emerging affluent and influential cultural elites wherever they take shape. In markets such as China, where these communities are expanding very rapidly, we will accelerate through locally resident communication and refined brand expression. Marketing investment will increase selectively, I would say, by around 10% every year to sharpen visibility and influence within those circles. Client engagement will deepen through high-touch experience activation, including exclusive Bottega Veneta residences, designs for our most important clients. Leather goods will continue to power the house, Intrechataa will continue to sit at the center as the house ultimate icon enriched through new expression and interpretation. We will deepen the offer for top clients, expand men and travel and strengthen our presence across key occasions. Creative codes will gradually extend beyond Intrechataa while preserving enduring icons that really anchor the desirability of the house over time. We will deliver steady growth through 2030, continuously fueling the category. So to unlock its full potential, Bottega will broaden its relevance beyond leather goods affirming its position as the ultimate expression of luxury craftsmanship across categories. This includes building a complete ready-to-wear and shoes wardrobe for women, for men, spanning day wear to evening wear, right, Luis, classic and collection pieces you want to invest in and you want to keep forever. That's the spirit. Jewel will be reinforced across both fine and custom jewelry, leveraging the platform that we are creating on the category. The Maison will also structure a distinctive gifting and art of living proposition, targeting entry clients. The plan is to more than double non-leather goods revenue in Bottega by 2030. Client development will be firmly VIC led. Bottega Veneta will reinforce the top of the pyramid through targeted product offers, broader occasion coverage, including made-to-order and increasingly differentiated experiences. At the same time, desirability among core clients will be sustained through icons and cultural visibility. Recruitment will come through carefully managed entry categories, small leather goods, custom jewelry and out of living, always protecting brand equity. The ambition is to increase the share of VACs by 50% by 2030. In essence, Bottega future lies in scaling through a deeper exploration of what true luxury means, exclusivity, excellence and desire. [Presentation]

I think it's one of the most distinctive houses in global luxury. It was, as you know, born from Christoph Ball's heritage in Couture and it has been continuously reinvented through successive creative as that revived, reshaped and reinterpreted the legacy. Very few houses have shown the same ability to create an entirely new market segment from redefining modern streetwear to shaping the global luxury sneaker landscape, Balenciaga has repeatedly been ahead of the curve. It also holds a distinctive strength in men when you look at the numbers, which remains, I think, a structural asset for the house. You can state that Balenciaga has become the most relevant luxury brand for Gen Z. That's what it is. This is a generation that will account for 20%, 25% of the luxury market by 2030 versus 14% today. They're growing, yes, but they were Balenciaga customers. Over time, Balenciaga has built one of the most loyal VAC communities in the industry, representing 25% of their sales. This is a community grounded in emotional attachment, strong identity and deep engagement. And beyond product, Balenciaga commands real cultural relevance. It influences in fashion, youth communities and digital platform worldwide, and it has repeatedly proven its ability to create silhouettes that define entire eras and has been constantly innovating in marketing. Balenciaga, therefore, enters this new phase, I think, with credibility, legitimacy and a strong reputation for creating trains. The next chapter is about channeling Ballenciager influence with confidence and stronger balance between categories and genders. The house will reaffirm itself as an innovative house. The uniqueness of Balenciaga lies in the fusion of culture mastery and cultural relevance. We speak to the new people that are willing to jump on the main stage in this world and want proudly to stand around. That's the claim. We want them to feel unique and relevant even before they will become. And what -- and this is, let's say, for everybody, everybody that wants to stand out independently from who they are or where they come from. Going more concrete, leather goods is rapidly becoming one of Balenciaga's most powerful engine of growth and its weight in the business will continue to increase. We are scaling across segments and functionalities. We are building coherent leather goods families that drive repeat purchase, loyalty and long-term client value. And the proof points are, in fact, already there. We are delivering consistent double-digit growth with around 20% -- plus 20% sales year-to-date in leather goods, [ Gianfranco, ] if that's the case. We have 2 distinct icon is the Rodeo and City relaunch, both of which became bestseller in under 2 years. And now they have new lines like Bolero and 7 that they are already contributing to this momentum and broadening the architectural, let's say, depth of the category. This is the blueprint of our strategy. And so it's fewer, stronger families, iconic potential and disciplined innovation. We will double leather goods business by 2030. Balenciagia has also built a strong structural foundation in men, as we said before. The next phase is about restoring balance and resilience by scaling women as a primary engine of growth. Men remain one of Balenciaga's structural strengths. The priority now is disciplined evolution, protecting our legitimacy while reigniting the spirit of innovation that has always set our -- this house apart. We will revamp men's ready-to-wear and men's shoes through new territories from technical wear to hybrid footwear, consolidating Balenciaga leadership in building the next wave of luxury segment. Women's ready-to-wear is central in our opinion to reassert Balenciaga fashion authority and expanding the role of women within the business. The brand has already started to rebuild a distinctive women's wardrobe. Collection have been reanchored in kind of architectural shapes with a very distinctive outerwear and dresses, fully leveraging Crystal Ball's legacy while maintaining a sophisticated sportswear vocabary that bridges the house's different creative years. A more distinct and more readable feminine wardrobe identity is being codified across seasons. And the recent acceleration in leather goods is being leveraged to drive head-to-toe silhouettes, increasing cross-sell from handbags clients into ready-to-wear and shoes and strengthening both VACs and core client development. The first signals are pretty encouraging. Pier Paolo Polis first collection is already generating strong traction, resonating across clientele and generation and recruiting new women customers. The ambition is to more than double women's ready-to-wear from now to 2030. Balenciaga will drive recruitment and desirability by activating the brand across 7 cultural territories. You have TV series, music, sports, wellness, gaming, innovation and patronage. These territories are how we expand our resonance with younger audiences, expand reach and sustain cultural relevance beyond fashion. Innovative brand engagement in these 7 territories will fuel recruitment across segments. Strengthen entrant categories and consolidate Balenciaga position as one of the brands that better understands the vibe of the new generations. Balenciaga maintains distinctive position in Asia is the reality, where the Maison has a very strong momentum. The priority now is to strengthen balance across regions and increase overall resilience. It means accelerating development in North America, in the Middle East and in Europe. The plan is to nearly double the Americas business by now to 2030. Ultimately, Balenciaga enters in the next chapter from a position of strength with influence, with legitimacy and with creative depth. The path forward, I think, is pretty well articulated. It reaffirms Cutera Authority, rebalance women and men, scale later gas and convert cultural affinity to use into sustained growth. [Presentation]

So McQueen was built on a bold expression of, I would say, individual empowerment and a bit. And London bornouse, as you know, defined by sharp tailoring, strong silhouettes, emotional intensity and I would say, exceptional craftmanship brought to life through very powerful storytelling in British heritage and contemporary culture. Over time, this edge was diluted. Growth became too dependent on a very narrow offer, mainly sneakers. At the same time, the brand overextended its network and its structure. Gradually, McQueen drifted away from its core DNA. Growth lacked substance and the positioning lost its sharpness. It became clear this model was no longer sustainable. We, therefore, launched immediately a deep reset of the brand, restructuring operations and reassessing the business model to make McQueen fit for the future. The starting point is to reassert McQueen's legitimacy as the emblematic British luxury fashion house, and noncompromising brand, confidence and powerful with a unique ability to subvert breeze tradition and tailoring codes and always grounded in unconventional craftsmanship and brand expression. Women's ready-to-wear, sits at the heart of the brand. Tailoring and evening wear are anchor categories, sharp silhouettes, distinctive cuts, a contemporary attitude with strong emotional impact, mastery of tailoring codes remains, in our opinion, central to McQueen's identity. Leather goods, shoes and accessories must fully reflect also this uncompromising spirit. This also means simplifying and clarifying the SKU architecture, rightsizing collections, focusing resources on the category that really matter and driving a more disciplined assortment around SKUs, efficiency and strategic price bands. McQueen doesn't need reinvention. It just simply needs focus and sharper choices, greater selectivity and a bold McQueen identity. So the latest show already signals the shift with stronger creative direction visible in the Fall/Winter '26 collection. Rightsizing McQueen is already underway. The next step is to push towards a leaner, more focused business model. In retail, we are downsizing the store network, concentrating on a very selective number of key markets and locations. By end of 2026, we will have completing the rightsizing of our distribution network with 50% less store versus the year-end 2025, so half of them in a year. In distribution, we are rebalancing the channel mix by expanding wholesale only through very selective partners aligned with the brand position. In organization, we are reshaping the structure to match this reset, rightsizing all functions and refocusing the business on product, image and client experience. Headquarters were reorganized in Q4 2025. Italian operations are being restructured in H1 2026. Regional consolidation is progressing in parallel with the store network reduction. So finally, McQueen is strengthening collaboration with the group, leveraging shared services to increase efficiency and to reduce structural complexity while fully preserving, of course, its creative identity. This is how McQueen reconnects with its essence, sharpens its positioning and builds a credible path toward long-term profitable growth. Now the McQueen team has a window of opportunity to go back to the times when rooted in [indiscernible] so far away from here, its authority comes from unmatched tailoring where everything is about time, precision and human touch. This depth of know-how accumulated over decades and internalized across the house is what makes Brioni genuinely rare and actually globally credible. At the core stands Brioni Maestria, our signature customization platform spanning from made-to-measure, made-to-order and bespoke is the purest expression of the house philosophy and the key value creation lever driving higher margins, stronger client loyalty and long-term brand identity and equity. More than 660 artisans craft 100% of Brioni's formal wear internally, an exceptional level of vertical integration and that anchors quality, scarcity and pricing power. From this foundation, Brioni's Sartorial intelligence now extends into a full lifestyle wardrobe, formal, leisure, evening wear. This is the natural extension of AltraSatthorea into every moment of a client life. Brioni diversification beyond traditional formal wear presents an opportunity to enhance client value while maintaining the brand a very, very exclusive positioning. Every new product category is introduced with uncompromising tailoring standard and a premium pricing strategy. Women's is being developed selectively, rooted in the house tailoring DNA and representing a meaningful, I would say, a meaningful long-term opportunity for us. Clienteling is Brioni most powerful growth engine. Maestria goes beyond the athleer, Frank shows, private appointments, in-house services. We build long-term high-touch relationship grounded in intimacy, discretion and exceptional service. Brioni is, by nature, a house for those who lead global decision-makers, ultra-high net worth clients, men and women for whom excellence is actually nonnegotiable. We will reinforce this authority selectively across key geographies where ultra-high net worth demand is structurally growing and the AltraSatthorea offer remains underserved. We will do this while preserving rarity through selective access and highly curated experiences, making Brioni the most desirable lifetime wardrobe in ultra-luxury. Brioni's mastery of tailoring and customization is unmatched within the group. It is, therefore, a strategic asset. Beyond its own development, Brioni will play a broader role as the natural reference for sartorial excellence within Kering, serving the needs of other brands when it comes to made-to-measure bespoke tailoring. This means embodying the highest standards of craftsmanship and client intimacy, safeguarding and elevating the culture of tailoring, fit and service excellence across the group. Know-how and capabilities will be selectively shared where it strengthens the whole while fully preserving Brioni's autonomy, rarity and exclusivity. This is how AltraSatthorea will become a distinctive group capability with Brioni as its natural authority. [Presentation]

So jewelry is a large and fast-growing category, as you know, representing around $30 billion globally for luxury jewels and the branded part of it and expanding faster than most of other luxury segment. It benefits from a powerful structural driver, rising self-purchase, demand for recognizable design codes growing unisex appeal and I would say, long-term premiumization of the product. In 2025, jewelry proved to be the most resilient category within fashion and luxury goods. Jewelry also offer superior fundamentals, preserve pricing power, cultural relevance, resilient margins and exceptional emotional engagement that reinforces brand equity and drives client loyalty. Yet the market remains highly concentrated with room for challenges like us. Beyond a handful of global leaders, the category is still fragmented, leaving substantial runway for high potential players. Today, jewelry is structurally underpenetrated across our fashion houses, representing around 2% of sales versus mid-single digit to low teens for peers. And this gap for us and for me, represent a significant upside. Kering already generated EUR 1.2 billion in jewelry with around 75% from Boucheron pomelatoo Chile. 4 houses, I think, with strong creative identities and complementary position. They have momentum, but historically operated without a unified strategic backbone, limiting scale and synergies. combined with a structurally premiumizing market and a $20 billion, $30 billion addressable 24 carat gold market in China at the category level, the conditions are firmly in place to scale jewelry through a coordinated group-wide approach. So our priority is to unlock the full potential of each house by reinforcing what makes them unique and leveraging on what's already resonate. This means strengthening each house identity and creativity, scaling iconic lines and hero collections and expanding high jewelry as both an image and the value creator. Each house follows a differentiated growth path. Boucheron continues to consolidate its Avanguarde leadership on Plus Dome through the development of and animation of its pillar lines, the acceleration of high jewelry also and international scaling and a global scaling. Growth combined market share gains in core markets with expansion in some underpenetrated markets like the U.S. The opening of the Shanghai Xintiandi flagship at the end of 2025, I think it's a strong illustration of this kind of strategy, positioning Boucheron as a leading challenger in the global high jewelry. To support this growth, sustained and disciplined investment in communication, I think, are essential, Helen, this is the issue, both to fuel expansion in high potential markets and to maintain momentum and desirability in mature markets, including Japan and also Korea. Finally, building on its existing offer and rich archives, watches represent an additional opportunity to extend Boucheron's creative territory and support long-term growth. And we have Pomellato. Pomellato is strengthening its role as the benchmark of contemporary, colorful fine jewelry rooted in Milan in Milan's craftsmanship and bold design. Growth will be driven by an enlarged and upgraded product, let's say, offer, increased store productivity and control distribution expansion. Dodo continues to reinforce its position in gifting, gifting jewelry, driven by strong recruitment, category breadth and sought for creation that carry emotion and connection. First in its domestic market is Italy, obviously, and in selected international geography where the brand already has a meaningful traction. Then we have Chile. Chile built on an exceptional momentum right now, and I would say in the past decade with sales that multiplied by 11 between 2015 and 2025. The focus is now on enriching and upgrade the product portfolio, supported by higher investment in marketing, strong storytelling, cultural relevance and emotional connection. The brand still has a significant potential and to expand, especially in Greater China, while exploring, for example, the structural 24 carat gold opportunity, which is a major growth engine for the house. Beyond our jewelry houses, we see also a major opportunity to scale jewelry as a materially larger contributor to our fashion houses over time, doubling to tripling its weight. So we start with Gucci. A few years ago, Gucci jewelry, including watches, was around EUR 600 million, EUR 700 million sales. Today, it's EUR 200 million, right? That is headroom we can recapture and grow, leveraging Gucci's global network and category equity. This expansion is a dual level. It lifts desirability and deepens cross-category engagement while also supporting margin expansion as jewelry structurally requires higher communication intensity than fashion and on the client side, creates an immediate opportunity to convert fashion VICs into high jewelry clients with the same brand. This is the dynamic already proven by leading peers and competition. So what truly changes now is the way we operate. We are moving from 4 independent jewelers to one coherent powerful activity that is carrying jewelry under the, let's say, leadership and the stewardship of Jean-Marc Tuplet that everybody knows. This is a critical step in the gradual integration of Razllifranco group. This is a world-class Italian manufacturing partner, bringing exceptional craftsmanship technology and also end-to-end production expertise. This provides us the industrial backbone to scale jewelry across the group, including in-house sourcing and manufacturing of diamonds and pressure stones, which optimizes obviously, cost and enhances traceability. This is not about the standardization. It is about vertical integration. Each house retains full creative autonomy and a distinct -- very distinct territory. The diversity of identity remains, I think, a core strength and a typical habit of caring. In short, what we do is one integrated jewelry activity, more scale, more margin, more speed and more brand power without ever losing the uniqueness of each one of the house. With this approach, jewelry complements fashion, eyewear and beauty in a pragmatic way and is positioned to make a meaningful contribution to the group's growth over time when we look at the numbers of the plan. And as I said earlier, the jewelry business is set to double in the horizon from now to the end of the plan with its contribution to the mix increasingly -- increasing by around 5 points in total on the mix. driven by the acceleration of our pure jewelry houses and the scaling of the fashion jewelry across the group, starting, again, I repeat with Gucci, while operating at market level profitability standards. So let me now turn it to a business where this approach is already fully at work since years, and this is Kering eyewear. [Presentation]

So Kering eyewear entrepreneurial story from Northeastern Italy from Roberto and the team because around 10 years ago, we made a choice at Moten.rois made the chart that most people thought was impossible. It was to build a luxury eyewear company inside the luxury group. From scratch, we committed to leverage design excellence, product quality, distribution control to drive category integration across the Kering portfolio with Gucci at the time as a primary driver of global cross-brand synergies. That decision has positioned Kering eyewear where a few newcomers ever arrive. But the real story is not how fast we grew. The real story is about how we built a distinctive foundation for the long term with brands, industrial assets, innovation and teams that make this business unlike any other in our industry. We started from a brand page, no design, no product development, no factories, no distribution. What we did was a conviction, everywhere industry deserved its own luxury house, so we built one. And an integrated model, end-to-end design, product development, supply chain and distribution under one roof. We partner with luxury powerhouse like Richemont, you've seen on the movie, who not only embrace our innovative business vision, but also strengthened our venture by enriching our brand portfolio with a very highly desirable top-tier brands, including Cartier, just as an example. We invested in industrial capabilities. Then strengthened the platform with Lindberg and Maui Jim. These are 2 proprietary powerhouses. Today, we operate the most balanced and resilient portfolio in luxury eyewear, iconic houses, fashion accelerators and high-margin proprietary brands. And the result speaks for themselves from EUR 0 to EUR 1.6 billion in wholesale revenue with strong steady profitability, proving this model is differentiated, durable and it's scalable. Today, Kering eyewear stands on a set of unique strategic assets. We operate a global portfolio of 15 brands. This makes us one of the most attractive and relevant partner for optical retailers and distributors worldwide. We manage a tightly curated distribution network reaching up to 60,000 doors, 60,000 doors, but this presence is managed brand by brand, with each Maison defining the right level of distribution to maximize desirability and productivity. We have built a flexible and balanced industrial platform, delivering world-class craftsmanship quality, speed and traceability. We benefit from proprietary lanes expertise, giving us a technological edge that is unmatched in this industry. And we have developed a strong culture of innovation, which is not taking us beyond eyewear into AI-powered connected luxury products through our recently signed partnership with Google. Looking ahead, we will continue to build every brand into a long-term platform. That means sharpening each front eyewear identity and storytelling, strengthening her lines, optical pillars and innovation cycle. It also means unlocking Valentin's eyewear full potential from day 1, leveraging all synergies with L'Oreal fragrances business and global footprint. We will accelerate Lindberg's global development, building on one of the most distinctive product proposition in the market. It's uncompromising quality, cutting-edge innovation and a unique design language, extreme customization, attracting a highly qualified and discerning clientele. And we will build on Maui Jim's strength as a leading sunglasses brand supported by a powerful legacy in lens technology and optical performance, scaling its global footprint through hero products and optical launch and reinforced brand authority. Execution, not footprint. Growth will come from how we run the business, not from adding doors. We have 60,000 just enough. Higher productivity per door, deeper cross-selling, stronger luxury execution in store. We will build strategic subsidiaries only where control creates value. And we will harmonize training, trade marketing and service standards across every region. Margin will expand through industrial mastery, we scale -- sorry, we scale proprietary lens capabilities as a structural differentiator. We will automate replenishment to keep best sellers always available. We'll enforce a strict cost discipline and best-in-class cash conversion, and we will increase the share of proprietary brands to reinforce margin resilience. In line with our ambition to stay ahead of the curve and strengthen our leadership in the luxury eyewear market, the next phase of our growth will also be driven by investing in technology. So in this context, we aim to lead the luxury smart eyewear segment. The partnership we have established with Google will be instrumental in delivering the ambition, enabling us to build the first true luxury smart eyewear ecosystem desirable, wearable and meaningful. Our approach will be fundamentally differentiated from existing market propositions because by combining Google's unique technology and ecosystem with its leading position in search, video, AI and agentic e-commerce with Kering's eyewear unparalleled design capability, exceptional product development expertise and highly selective and controlled distribution model, we will elevate smart eyewear from a tech accessory to a fully integrated luxury product experience. This will be further reinforced by the seamless integration to our Maisons ecosystem from boutiques to global communication platform, ensuring consistency, desirability and relevance across every touch point. Through this model, we will address the industry's long-standing challenge, the balance between design, battery, functionality, setting new standards for the category and defining the role of connected eyewear for our brands. In 10 years, we have proved eyewear is a true luxury business, and that's what we can -- something we can lead. Today, we have the portfolio, the industrial power and the innovation road map to shape the next decade. Tomorrow, we will scale Kering eyewear from EUR 1.6 billion to a multibillion euro platform, setting the standard of craftsmanship, technology and desirability with the mindset of a challenger as they have always been, but at the same time, with the confidence of people that proved they could be a leader in that category. So I think, Roberto, you're all ready for the next leap. Now I spoke about the brand, reigniting growth is essential, but sustaining it, it's sustaining it over time requires some strategic choices. So the ability to scale where it matters and the discipline to invest where we have a long-term right to win. The ambition I am about to -- and the ambitions that I'm about to share are not about diversification for its own stake. They are about unlocking new value pools, reinforcing the relevance of our houses and positioning Kering at the forefront of our luxury evolves. So let's begin with very old -- actually a very old brand, but reinvented. This is Ginori, and we have a small movie, I think. [Presentation]

For me, Ginori represents the activation of one of the most singular assets in our portfolio. It's almost 300 years, craftsmanship, artistic heritage and cultural relevance. What changes today is how decisive we are activating these assets. Our strategy for Ginori is deliberatory do. We are activating 2 complementary growth engines at the same time, each one reinforcing the other. So first, Gino is being built into a major global reference in fine force lane and tableware, consolidating its leadership in Italy and pursuing its successful expansion selectively across key international markets. So tableware remains the core, the economic creative and industrial backbone of the house. And around this core, Gino strengthens its industrial capability, including selective porce lane developed for all the caring houses. So thanks to this kind of task and heritage, it has built a close and long-standing partnership with Gucci typically and explore selective collaboration with other houses. So intercompany activity only today represents 4% of the total of Gini business in 2025. So leaving a huge upside if we play the game differently. So second, Gini is expanding into a true home that's our wish and lifestyle design house rooted in Italian -- so with experiential luxury as a core expression of this evolution. So this evolution is a natural extension of its DNA. So we're working with Medi on the concept. And the house has a long tradition of collaborating with artists, with designers from Joon in the '50s to contemporary like Duke Ed Hall and leveraging design language, that kind of decorative know-how and cultural relevance. So I think the brand expands into different home and lifestyle category. We're also developing things like cafes, terraces, residences, et cetera. So through these initiatives, Ginori will act as we do in jewelry, just to make it clear, as an incubator for lifestyle and experiential concept for all the caring houses. This is the idea, enabling immersive brand expression and crossmaison opportunities. So this evolution is coherent. -- and design-led, not volume-driven and remains asset-light and I would say, partnership driven. Over the past 5 years, Gini has almost multiplied by 4 in size and is on a critical path towards breakeven, okay? So looking ahead, the ambition is to deliver a 10% double-digit growth year-on-year over the next 5 years. So supported by also the activation we will do and the investment we do on the group. In a nutshell, Gini is becoming the Italian reference in porcelane, fine art, culture Maison with global reach, design-driven, craft-led with a distinct role in strengthening Kering's portfolio and long-term growth for everybody. Then we have beauty, that's part of this Kering Next. The beauty is a category with tremendous potential for our houses. It is also a category where scale, science and industrial power determines the winners. So over the past 3 years, we have built, I think, a solid foundation with Creed and with the first launch of Bottega Veneta, Balenciaga. This led us to a conclusion that -- the conclusion was that to unlock the full beauty potential of our brands, the most value-accretive part is a long-term partnership with L'Oreal, thanks to the disposal of Kering Baquet, which we acted a few weeks ago. And why? Because this partnership gives us immediate access to the most -- to the world's most advanced beauty platform in research and development, in manufacturing, in global distribution as well as an unmatched media reach because of their investment. And it positions our brands for accelerated growth and long-term success while delivering meaningful royalty potential. So as a result, both Tega Veneta and Balenciaga and later Gucci when the license expires, will reach their full beauty potential with a far greater speed, I'm convinced, with a far greater scale and with an impact that we could not achieve alone on our own. This is not a leap of faith. This is a proven model. So the extraordinary success of L'Oreal that L'Oreal has built with Saint Laurent Beauty, I think, is the clearest demonstration. They transform a strong brand into one of the most powerful and scalable fragrance businesses and beauty franchise in the world, a business that is now generating around EUR 3 billion, let's say, in annual revenues. This is really impressive. So the potential of our houses starting with all of them, but including Gucci, it's very substantial. And West Ell Beauty's scale shows what a strong brand can achieve. It is a benchmark of possibility, not a ceiling for -- particularly for Gucci. For a brand with the Gucci equity, the long-term opportunity is very, very meaningful. So the choice we made is, therefore, a value-driven decision, faster growth, significant lower capital intensity and a far more powerful way to support our houses over the long term. But this is not the end of the journey, right? So this partnership gives us a strong foundation. What matters now is how we build on it. So living longer and aging better is becoming the ultimate need for affluent people alongside a shift from ownership to optimization, people want to feel better, not just own more. So supported by powerful demographics and valued around more than EUR 6 trillion as a market, the wellness and longevity market is one of the fastest-growing adjacency to luxury, driven largely by top-tier clients and showing strong natural complementarities with personal luxury in services, in experiences and in codes. So despite the size of the market, longevity and wellness remains a highly fragmented sector with today's offer falling short to provide an end-to-end always-on luxury experience. Disconnected protocols, lack of standardization and experiences rarely meet luxury expectation. Destination clinics and urban services operate in silos with limited continuity, with limited integration of community. Our objective is to break this compromises and to develop urban and destination-based centers built on safe, scientifically validated and proven protocols, continuous monitoring and high-end frequency subscription approach that supports long-term engagement. So luxury client experience, human connection and community being really central to the experience. So in a context like this, leveraging L'Oreal's expertise in beauty and caring know-how in delivering luxury experiences. So our goal is to combine personalized wellness and longevity programs with cultural experiences and exclusive product access anchored in privacy, in excellence and in community. So with Nicola, Nicolaus that I think everybody knows, we share the same vision, both for Kering Baé and for what we want to build in longevity and wellness, but I'll let you hear directly from him.

Luca, and hello to all of you from Paris. I hope you're enjoying your immersion into the world of Kering. Together with the L'Oreal Luxe teams, we are very excited to be entrusted with the beauty business of Kering's magnificent brands. They join us at a perfect moment as they will benefit from the momentum, drive and vision that Luca has instilled. This is a true win-win partnership. For L'Oreal, it represents a strategic reinforcement of our luxury leadership, allowing us to bring our unique beauty expertise to Kering's Couture DNA. Adding these new jewels to our crown, including Creed, a true royalty in luxury fragrance creates a powerful engine for increased growth and profit. For Kering, this means higher royalties, enhanced global visibility for its iconic houses and the opening of new frontiers in wellness and longevity in partnership with the world leader in beauty. So we have every reason to be excited about the journey that lies ahead. And with that, back to you, Luca.

So L'Oreal, a very strong organization, very, very strong leadership. The only thing I beat him Nikolaj and paddle when we play together the rest the machine, marketing and product machine. So as you will have understood, Kering next wave of growth will not come exclusively from scaling individual brands, but also from expanding the portfolio. We will select actually emerging brands adjacent to our core as well as in new categories and new geographies. All brands will have to display strong future cultural relevance. Our mission will be to scale them to their full potential within their territory, but never beyond. To support the strategy, we will set up a new operating model that delivers the platform effects of a large group to emerging brands across the entire value chain. So clients, marketing, real estate, manufacturing, supply chain, retail and of course, others. So -- and this is with the House of Wonders, -- that's the name we finally gave to the whole thing. Caring is kind of time traveling, right? So we will enable brands to achieve in 5 years what you normally need maybe the double or 3x the time while dramatically reducing execution risk. Our objective is not to chase the scale for its own sake, but to support brands that complement our portfolio by addressing new categories, new geographies, new audiences, notably subculture and new business models. So our priority is, first and foremost, to invest in the development of our houses. I want to say it very loud and clear. But we also look ahead selectively backing the opportunities that will shape the future of luxury, and that's also very important. Our investment approach remains flexible, I would say, pretty prudent, ranging from minority stakes with strategic influence to majority position. And we -- so we will do it where this thing is relevant. maybe we will do some venture style investment, but always a strict return framework fully aligned with our capital allocation discipline and with investments that are sized appropriately for the group. To this extent, we are also very pleased to announce a minority investment in iCycle. This is the most recognized luxury -- Chinese luxury brands today. And through this investment, we are not only backing one of the most -- one of the great success story of the Chinese luxury ecosystem, but also aiming at providing iCycle the capabilities to continue its development, specifically in Europe and the U.S. and maybe on to new categories. So reciprocally, we are convinced that our operation teams can learn a lot from the high-tech manufacturing, logistics and supplier ecosystem iCycle has been developing over the last years, particularly in China. So the next phase of our journey requires, I think, more than creativity alone. It requires a leaner, more connected and technology-powered organization and operating with intelligence, discipline and speed of the world's best-performing companies. So the ability to combine what I always say, art and science. Concretely, we are redesigning Kering with one integrated group platform, activating efficiency levers across the entire value chain from design to distribution so that every step becomes faster, more precise, more resilient. And this transformation is structured, in fact, around the 5 hubs I mentioned before at the beginning. First one is the industry. So for decades, Kering has built extraordinary craftroms, that's for sure, world-class Italian and European artisanal ecosystem and strong internal manufacturing capabilities. And so this highly specialized to fair patiently developed over generations is at the very heart of our product excellence, that's for sure. Over time, however, we have also accumulated a lot of complexity. So industrial and sourcing models have been largely developed brand by brand, leading to a lot of fragmentation, duplication and limited scalability. To accelerate performance, we are fundamentally rethinking our industrial backbone to serve our houses while keeping their specificities. So concretely, what does it mean? It means that harmonized planning, industrial sourcing and purchasing processes, common KPIs and the simple ways of working across houses. -- across purchasing, supply chain, production. We are strengthening our product engine end-to-end with one ambition. This is better planning, faster execution. We are deploying data-driven demand signals, AI-based forecasting and real-time data sharing to improve our, let's say, order sizing, reduce waste and tighten capacity planning across all categories and across all sites. We are also rolling out an AI-powered tool that dynamically rebalances products across stores, improving full price sell-through while raising client satisfaction. We are accelerating factory digitalization, deploying predictive analytics and centralizing governance to gain end-to-end visibility across all -- the entire industrial chain. This will strengthen decision-making rhythms, improve responsiveness to demand shifts and increase saturation of internal production capacity. At the same time, dedicated capacity, AI-assisted planning and digitalized manufacturing allow us to materially shorten development and production cycles. So we aim to have the time to market for both collection and carryover products and improving cost to serve, let's say, through better sequencing and load management. And we are already demonstrating that what it means. For example, on the day of the Gucci show, there were already around 80, 77, 80 products from the runaway that were available immediately online and in selected boutiques, what we call the see now, buy now. Behind that is part of the work that we are doing on the industrial part, and it, of course, will scale. So our supplier base is in global luxury. It embodies, as I said at the beginning, decades of highly specialized to fare that are essential to our brand desirability. But our evolution is, therefore, not about weakening this ecosystem. It's a very important message from my side because a lot of people will listen to that also outside, but about strengthening and preserving it through more solid long-term partnership. Today, we work with 4,200 direct suppliers, 4,200 supplier. But here's the reality, around 25% of them, they do 98% of our purchase cost and operational risk. So this is why we are reshaping our supplier ecosystem around a more selective and more strategic partnership model built on the notion of preferred supplier, which, as a result, also reduces our reliance on subcontracting where control and compliance are more challenging. A preferred supplier is not simply based on demanding group level criteria about excellence in quality and craftsmanship, full compliance with social and environmental standards, industrial reliability, agility and of course, the capacity to develop and innovate alongside us. This is a 2-way relationship with them, okay? By offering visibility, by offering them joint planning capability and long-term commitments, we position Kering as a preferred customer, the one that attracts and accelerate the best ideas and R&D from our supply ecosystem. With these partners, we move away from short-term transactional relationship towards long-term multiyear partnership. This brings shared planning horizons, joint investment in skills, tools and sustainability and deeper integration into our industrial and sourcing processes. Volume concentration is the consequence of this choice, not the starting point. It strengthens control, improves resilience, secures critical know-how and gives supplier the stability they need to invest, innovate and grow responsibly. Today, our industrial -- internal industrial assets comprised 37 entities and workshops, covering all major product categories and represented around 20% of fashion houses production in 2025 in average across all categories. Alongside this progressive optimization and saturation of our internal assets, strategic partnerships are a core pillar of this industrial transformation. We are building, as I said before, long-term collaboration with a limited number of industrial players who share our value and our standards. A good illustration of this approach is our partnership with moda. This is a leading industrial hub within the fashion ecosystem here in Italy. This strategic joint venture aims at investing in key industrial assets. So we will be built on shared priorities like excellence in chip, industrial skills, flexibility, supply chain, compliance and you name it. By saturating our internal assets and leveraging those kind of partnership, we target basically to double internationalization rate within Kering over the next 2 years. So the thing will be relatively quick. The financial impact of this organization is expected to be globally positive. That's the math that we made, though not -- probably not necessarily linear. Investment to improve product quality and further enhance our standards when it comes to suppliers selection, supply chain quality generates -- will generate costs, that's for sure. But these are largely offset by the synergies and the efficiency gains that we see. At the group operations level, we expect at least 1 point of EBIT margin gain because of this movement, it includes everything. just for the senior change, just based on the senior, just based on supply chain synergies, logistic optimization and indirect procurement centralization. This target represents the starting point for Stephane Noel, who just joined us from the automotive industry, who is our new Chief Industrial Officer sitting on the front line there with hopefully further progress expected for the future. So the second hub is client. I think interesting message for you. Client centricity, as I said, will be at the heart of everything we do. from designing the most desirable products to delivering the most amazing experiences. But to ensure it remains at the core of our culture or it stays there while updating this vision, leveraging new technology, the group has launched what we call COR, okay, CORE. This is translation of caring omnichannel recruitment engine. Core ambition is to take our existing client database capability to the next level by building a fully integrated and comprehensive view on luxury consumers, okay? -- deepening our understanding of preferences, behavior across all categories, leveraging our brand proprietary data and enriching them with external behavioral sources. Yet CORE is not only about data and AI, but also truly about rethinking our decision-making process and our organization to put the client at the center of what we do across the value chain from product out to client in. So core requires carrying around a single demand signal is the client, ultimately ensuring everything we design, we buy, we allocate and activate is inputed also by client data. Concretely, we have 5 identifying and activating the right audiences across acquisition channels, optimizing every euro we spend, in particular, leveraging first-party data to target high potential audiences and optimize spend allocation. So this first pilot that we made at Gucci in the U.S. are already delivering like 30%, 50% of ROI. So the thing -- the thing works, right? So second is client engagement, delivering personalized and contextual client journeys at scale, that's important at scale to drive traffic, conversion and cross-sell opportunity, especially leveraging AI and behavioral data to engage with high potential clients. This transformation has already been initiated, again, by Gucci, and I will come back in a minute on that because it's change. But you have the client engaging, you also have the product and offer development. So addressing occasion of purchase that matter the most to current and future customer segments, reinforcing product offering and anticipating needs, more specifically leveraging internal consumer, social and market trend data to better forecast demand and optimize production stock level. That's the store experience and retail performance through refined engagement model, store layouts and visual merchandising by leveraging consumer and retail data, customer feedbacks, store journeys analysis to optimize client experience. I think we target a 10%, 15% increase of productivity, which is massive, by the way. And yes, we are testing this. Strategy and portfolio expansion. So this is about prioritizing higher share of wallet of customers. So thanks to boosted customer intelligence like signal, services, panels, so it's about customer research, we will be able to design extended journeys for the Kering customer within Kering ecosystem and also our ecosystem partners. So finally, core will increase loyalty, very important. And therefore, the value of every relationship over time through more relevant products, services and experiences by enabling us to innovate and offer high-value cross-brand client services such as exclusive events or exclusive products or multi-brand private concierge to our VAC, which also makes a lot of sense. As part of this transformation, we are developing a new clienteling model. objective is to systematize the intuitive and individualized selling approach by combining AI-driven targeting algorithms, disciplined store routines and enhanced client adviser capabilities. So we piloted that at Gucci first. The program has already delivered tangible results by strengthening commercial animation, improving the quality and consistency of client activation and expanding the reach beyond VAC segment, notably leveraging new AI algorithms and technology. So stores that adopted the new approach delivered nearly double with approximately 2x higher outreach sales per store, 2 more multiplied by 2 purchasing clients following as an outreach and strong traction, especially across mid- and low-tier segments. So building on this momentum, we now expand and refine the program within Gucci. In parallel, we are scaling the program to the group, adapting the proven components to each house. The goal is to establish in this client journey, I think technology will be very central. So let's talk about technology for a moment. We are building the group's augmented platform as operational backbones to provide the group with powerful accelerators without kind of uniformizing the unique identity of each one of the known. That is very clear to all of us. This architecture will be based on what we call augment complete digital double of the company. It's data, flows, business processes modeled and hosted in the cloud. to provide a unified real-time and actionable views of all operations and scalability standards. And that legacy infrastructure can no longer guarantee today. This is it's 2 rigid. So we will have a completely different thing. So it will guarantee the state, in fact, it goes further because by layering on top of this kind of an hygentic AI level on those twins, it becomes possible not just to observe process but to kind of architecture in our opinion, are multiple. The first one is augmented products. So upstream in product design, the objective is to implement the tools and resource capable of anticipating sociological, ecological systemic and technological trends so as to feed the team well ahead of product conception. Second, the objective is also to facilitate information flow, okay? And the -- let's say, and the end-to-endiality of each one of the houses. The complementary idea is to enrich the product life cycle, the metadata of the augmented product, enabling traceability and optimization of product referencing, think about theviation in a few years. And in an environment where talks out might become structural, -- the challenge is to preserve quality goods, jewelry and eyewear. In this category, stock optimization and traceability are very, very critical areas. Less assortment diversity also means that each unit carries a higher individual value, making logistical precision an absolute priority. The challenge is real-time sales signals and predictive models, integrated seasonality, purchasing behavior, launch dynamics would enable really a shift from a reactive logic to a proactive one. So allocating the right product in the right place at the right time without overstocking or diminishing perceived priority. So for a multi-brand group like Kering, the challenge is even more complex. can remain very siloed within each house. with its own approach and tools. The growing pressure on media investment ROI and the increasing sophistication of customer, let's say, actually calls for a new operating logic in our opinion. The creation -- we will create what we call a client hub that will amplify capabilities. This hub talents that trace the collective level without diluting each one uniqueness. Then we have retail experience, what we call it augmented with the experience, the clienteling tools on the market today already gives sales associates powerful capabilities. You have personalized client insights, you have product suggestions and you have real-time, let's say, interaction history search-related friction and consolidating everything in one place, the tool disruption. And finally, we have an augmented resource planning powered by predictive footfall flows and local events that guarantees the right level of staffing at the right time, ensuring every client receives the attention they deserve. In this way, both the client adviser and the store managers see the luxury boutique is no longer just a point of sale. It's actually a collector of signals. -- is not explained by sales alone, but by the combination of dozens of exogenous and endogenous variables, weather, food trial, competitive density, seasonal tourism, you name it. So crossing this anticipating footfall peaks, adapting assortments locally, optimizing staff or even adjusting commercial animation in real time. For a multi-brand group, this also obviously is an opportunity to build a shared infrastructure, geolocalization, external enrichment, a 360 view of the network providing each develop alone. So in conclusion, we have 10% as one. I want to talk about sustainability. I'm looking at Marie-Cla that is our most important expert in the whole industry. So the final hub of the group is sustainability. Sustainability has always been, I think, a defining part of Kering's leadership. We did not enter this space to follow trends, and we will not step back from it now very clearly in operation in sourcing, in retail and in how we allocate capital. It must apply across all houses, all categories, all regions and at all level of governance, no exception. To deliver on this ambition, we are reinforcing our operational, let's say, operating model. Each house executive committee will include protect both our environmental footprint and our brand equity. To achieve this, we are shifting towards, as I said before, towards precision manufacturing and more disciplined, let's say, collection architecture. The direction is set and execution is accelerating. And I would like to add 2 essential elements here. First, ecodesign must happen at the very beginning of our creation, embedding lower impact materials consistent with our target to get to net zero in 2050 and to have a 50% reduction already by 2033. These are not just like abstract target. They are day-to-day steering tools for our teams. Our second priority is the environment and the culture to deliver long-term value. To get there, we must start but only if it is protected and nurtured. We are strengthening and operational excellence. We also enforce strict social standards decent and safe working conditions. In 2025, 70% of our supplier level of performance. And because this challenge cannot be addressed by any single company. We also, as you probably know, exercise collective leadership through action like defection path. To deliver on our ambition, we must invest in capabilities for the long term. That's why yesterday, I was here and we launched the Kering Academy of A in the Innovation District, close to the STEM University of Stale in the Expo area. And the academia will be firmly anchored in Italy with a network activated, I think, on 9 regions, Sabina. So we create a network that's probably the biggest one in and a network of leading educational partners, including Caldus or [indiscernible] or Polytechnico Milano. It will offer training path ranging from 1 semester to 7 years to the kids. combining craftsmanship design, technology, sustainability with some programs leading to diplomas that are recognized by the Italian authorities the next generation. The idea we will start. So our boutiques are where desirability meets reality, where we earn or lose the client. So to reinforce this link, we are deploying a retail excellence model across all houses, aligning incentives with full price sell-through, sales density, VIC development and the client experience. We're also introducing in-store immersion program for leaders. So I'm sending some of the in terms of management is another key thing. And we did -- we made a few decisions together, okay? We have built a new, let's say, management by objective scheme that was implemented this year. So all leaders in Kering are aligned on group level KPIs complemented by in-house and individual objectives. This is also very important sometimes for -- especially for the investors and for the analysts. For the first time in Kering, in [indiscernible]. More broadly, we are also investing in careers. We have developed a tool that we call talent match that it's -- we are creating and group-wide. It's, again, AI-based framework that gives our people greater visibility of what's going on, what are the internal opportunities and encourages mobility across functions, across houses and geography and supports long-term career. This is also why we are launched -- we have launched what I call a Kering's sering. This is a new group program designed to identify and reveal emerging talent by assigning them high-impact, cross funny and fruitful process that we are running. Finally, I would like to focus on a topic that matters deeply to us as a group and reflects a long-standing commitment of [ Francoisriino. ] And this is the place of women, not only within Kering where they represent more than 60% of our workforce, but in society at large. This conviction is expressed through the program that we call women in motion. which, by the way, recently celebrated its 10th anniversary and actually works to increase the visibility of women creators and leaders across cinema and the creative industry worldwide. More broadly, this long-term engagement to women is embodied by Kering Foundation, which since 2008 has been fighting violence against women and children through very, very concrete on-the-ground initiatives around the world, notably in 6 countries for Kering. The foundation focuses on supporting survivors, preventing violence and striving for broad mobilization to end violence across generation. One powerful example is the Maison de Farm in France. which provides care, protection and long-term support to thousands of women victims of violence every year. To give you a sense of the impact achieved over 18 years of 30 partnerships. It will continue to enable women and children to lead safe lives and to thrive in the years to come. Our third priority focuses on the foundation of our craft, diversifying material and inventing the next generation of luxury. Client pressure and animal welfare consideration requires us to broaden our material universe. Traceability and responsible sourcing are not negotiable at Kering. We are diversifying our material portfolio to reduce dependency on constrained resources. We are accelerating the development of next-generation materials as exemplified by biotech and circular regenerative textile. And we are expanding value-enhancing service like repair, certified research and trust in our opinion, loyalty and desirability, okay? All in all, progress will be measured by through very few key indicators. You have full material traceability and full alignment with caring standards ready-to-wear and 40% alternative materials by 2035, very clear. So a reduction of leather intensity measured as square meters of leather purchase per million of revenue in leather goods and shoes, allowing us to decouple our growth from leather dependency with a 30% reduction target by 2028, so already relatively quickly versus 2025. A positive nature impact in the water priority, okay, of our supply chain worldwide aligned with the targets. And finally, a strong innovation agenda with 20% of the revenue generated from innovation by 2035, split heavily between material, but also process innovation and service and new business model. So let me conclude with the state in this section, and then we go into the financial outlook. At no point, we will allow a business argument on operational complexity to be used as a justification for failing to deliver on our sustainability commitment. This is how we build, we believe, resilient brands, nurture long-term trust and deliver performance that last. Now we come to the money, and we finish. Everything we have presented today has obviously a purpose. First one is restore sustainable top line growth driven by desirability and mix. rebuild profitability ROCE. Fourth, improve cash conversion through leaner operation and better working capital management. Delivering on this is what matters to me. And when we do, the results will follow, both in revenues and in margin. But I want to start again from brand desirability and how we measure it, and I will explain why it's so important. Brand desirability is a strategic asset and one of our leading indicators of our future growth. We have, therefore, adopted a robust brand equity framework developed with a recognized independent firm that's called EFO which serves as a shared compass to assess and steer the desirability of each house as well as the group as a whole. Rather than relying on a single metric, this approach provides a holistic and integrated view on brand equity structured around, I would say, 3 complementary pillars. One is visibility. So we measure through spontaneous and aided awareness as well as current weight of brands in public conversation, ensuring desirability is grounded really in market presence and recognition. Second is appeal. So visibility, appeal. Appeal is captured through indicators such as steam, willingness to own and wear. And then you have image strength, okay? So these 3 things combine the formula. By combining these 3, we obtain a robust and really comprehensive measure of desirability, and that reflects not only how much our brands are wanted, but also how they are perceived and experienced in the market. Each house is measured independently through a large-scale survey among luxury consumer benchmarked against the market and the competitors and consolidated at the group level. A house showing a positive momentum will be supported to accelerate. A decline in brand equity will trigger immediate corrective actions and the reassessment of priorities and investment, okay? People will be paid on that. Part of the bonus will be on this one. So it's a serious stuff at Kering. Top line growth. We are building a group designed to deliver sustainable, profitable growth with gradual market outperformance. Our priority is to rebuild the strongest possible fundamentals, those that underpin desirability, pricing power, operating -- operational discipline and cash conversion. With this foundation firmly in place, we are confident in our ability to deliver sustainable growth driven by sharper execution, a more relevant, higher quality product offer across all categories, supported by sustained brand desirability. And at the same time, we are actively reshaping our distribution model to enhance productivity, brand impact and long-term, let's say, value creation. So starting from 1,719 directly operated stores at the year-end 2025, we are transitioning towards a more selective, smarter and more productive retail. This resizing, which is pretty material, is being conducted in a highly strategic manner with dedicated initiatives in place to preserve and recapture sales from the stores that have been closed. We expect a minimum net reduction of 100 stores in 2026 followed by the further reduction of net-net of 100 stores in 2027 and 2028, okay? By 2030, the group will operate a leaner and higher performing net with at least 250 fewer stores overall, around half are in Gucci, a footprint that is better aligned with our ambition, planned expectation and profitability objective. Over the same period, we will significantly upgrade the quality of our footprint with around 2/3 of the stores that will be refurbished or relocated to stronger and more relevant location. Talk about EBIT, very important. So Kering will deliver according to the plan, steady year-after-year EBIT margin improvement driven by every house. We are targeting midterm to more than double full year 2025 recurring operating margin percentage, supported by stronger mix, disciplined execution and operational rigor across the group. We are rebuilding profitability methodically, structurally and sustainably. Our EBIT expansion engine will rely on 3 structural levers. One is it begins with full price discipline. We have a clear ambition. This is to lift full price sales through desirability. We will enforce strict channel discipline, outlet penetration down 7 points, wholesale penetration down 3 points and the rightsized network delivering twice the level of sales density. And we are restoring inventory health with a sharp reduction of excess and aged stock normalizing levels in line with demand and materially reducing off-price exposure with a target of 7 points reduction in net inventory as a percentage of sales, thanks also to improve sell-through across the board. Third, operational power, running the business smarter, faster, better. We will deliver continuous productivity gains year after year, reducing OpEx and the percentage of sales across the group with notably specific actions on industrial synergy and marketing efficiency. As outlined earlier, this will translate at group industrial level into at least 1 point of EBIT margin improvement in the years to come, driven by supply chain synergy, logistic optimization and the centralization of indirect procurement that we will operate. At the same time, marketing will become more efficient. We'll continue to invest roughly the same percentage of sales, but far more effectively with a sharper targeting, stronger content impact and improved ROI. These are expected to represent around another point of EBIT from next year onwards and with those gains reinvested directly into the brands. Finally, we will run our store better, as I said mentioned before, stronger economics optimized staffing models and more efficient operating processes across the board. This is how productivity becomes a structural engine of margin expansion. And then we have capital discipline. This is essential, as you know, -- it's your money, the money of the investors. So we have to allocate it well. Every euro, let's say, needs to create value. Every euro we invest. CapEx will remain highly linked to returns with an uplift in ROIC on every major project. We will maintain a CapEx envelope around 5%, 6% of the revenue, focused on what truly moves the needle. So high-return retail project, targeted refurbishment, core operation and selective technology investment only where value creation is really proven. This is how we invest with discipline and deliver strong return. I'll talk about ROCE. This is give you our ambition. ROCE above 20% midterm remains our nonnegotiable benchmark, the strongest proof that growth translates into real value creation. ROCE will be, of course, about portfolio discipline. Every brand will continue to be to -- will contribute to profitable growth. So I repeat, every brand will contribute to profitable growth. But our resources will be allocated to houses demonstrating momentum, discipline and returns. Underperforming houses operate under a framework requiring them to reach EBIT breakeven within 2 years from now at latest. And we will strengthen cash conversion through hard tangible levers. We will restore inventory health sharply reducing excess and targeting net inventory at below 20%. We will enforce strict CapEx discipline and our free cash flow will improve driven by operational performance, supported by tighter inventory, selective investment and more predictable recurring cash generation. I want to talk about M&A because I think the question might come. Our priority is very straightforward. We will invest, first and foremost, in our houses to restore growth and performance. That's very clear. That means investing in what makes them win, create a leadership, product excellence, sharper, more productive retail network. And it means raising our operational game, strengthening our supply chain resilience, accelerating our digital transformation and using technology to streamline processes and upgrade, let's say, client experience. M&A will remain in the next few years, highly selective and focused on bolt-on acquisition, such as Rai Franco. This is aimed at strengthening our supply chain capabilities. This transaction will be targeted, operational in nature, financially nonsignificant at group level and assessed against a ROCE targets that are set for each segment. Our approach is, therefore, let's say, centered on precise complementary moves that will reinforce our industrial backbone while management attention stays firmly on today's priority, turning around and reactivating our houses and preparing in a disciplined manner for Valentino integration towards 2029, 2030, which could, let's say, cohesively complement, we believe, our existing brand portfolio. Our commitment to shareholders remains strong. Dividend growth will follow the improvement of the group's performance, supported by a payout ratio around 50% of recurring net income group share. Let me highlight the sequence in which we will build it. by year-end 2026, we will be a rightsized reset group and back on a disciplined growth trajectory, a leaner operating model, a healthier cost base, inventories under control and strict discipline restored across pricing, cost and capital allocation. By year-end 2028, we will have built healthy, sustainable momentum, top line rebuilt through desirability and stronger client dynamics, growth engines fully reactivated across the portfolio. And as this growth strengthens, profitability and returns will follow structurally, not cyclically. At that stage, growth is no longer fragile. It's repeatable, more predictable and value accretive. By year-end 2030, we will have reclaimed Kering's leadership as the next luxury leader, the next luxury leader, a group defined by desirability, powered by efficiency and built for the decade ahead. This is the financial trajectory of Reconrete, reset, rebuilt and reclaim. In conclusion, over the past month, we have taken the first decisive steps of Reconcrete, strengthening our fundamentals, restoring discipline, accelerating operational transformation and defining long-term perspective that is both coherent and actionable. Desirability remains our North Star, guiding every decision and helping us balance short-term imperatives with long-term ambition. We combine art and science. blending craftsmanship and innovation with scientific discipline in business management to ensure sustainable value creation. We embed resilience into our model, restoring the right equation between retail clients, products while rebalancing fashion cycle and building a diversified and robust portfolio across categories and segments. We restore operational efficiency, optimizing our cost base at both group and brand level to improve resources allocation and deliver stronger ROCE, a key performance indicator for us. We leverage group synergies in client, in tech and operation, harnessing the complementarity of our houses to act as one integrated platform, not just a collection of brands. We inject technology at every level of the organization, making Kering the most technological advanced luxury group with a fully integrated structure across industrial processes, technology, software, AI, data and talent. We create a fully integrated ecosystem built around the clients, fulfilling every expectation to leave an extraordinary life, a company built around the cloud, the cloud built around the client. We developed global models, global model, local relevance to global scale, combining a shared backbone with the flexibility to adapt assortments, storytelling and experiences to each market. And above all, we invest in our people because they are the engine of Reconcurring. We are building a culture that rewards creativity, accountability and collaboration, attracting new capabilities in technology and data while nurturing the craftsmanship, the excellence and the passion that define our houses. Empowering and upskilling our teams is what makes this transformation sustainable and what will allow us to deliver at the global scale. Of course, the road ahead is demanding. -- but our direction is now firmly set. Semester after semester, you'll be able to measure our progress. This is not just a strategic plan. It's a collective ambition. And I'm convinced that with the creativity, the expertise and the commitment of all our teams across the group and the houses, we have everything it takes to succeed and shape Kering future together. This is our journey. This is our momentum, and this is rec. So thank you very much for your attention.

So we will start with Q&A session. [Operator Instructions].

So 2 questions. The first one is a very quick one. So I'm here. The first one is a very quick one. Medium term, define medium term, should we understand 5 years, i.e., about 2030? I think that's kind of what you imply. That was a quick one. The second one is, so you talked a lot about how you -- the group is evolving from a holding company to a much more integrated group. Could you please share with us 2 or 3 very practical simple examples that things you're doing now that you were not doing 1 year ago to leverage the scale and the benefit of the group?

I'll give you one example because -- so we leave some room for all the questions. Real estate, so we moved the responsibility of real estate to the area of Jean-Marc. -- unfortunately, it's forced to do the bed boy and make the arbitrage between things and every brand will want this thing. Sometimes it's not perfect, like sometimes you have discussion, but it's very clear that you have someone deciding whether that brand goes there and not go there, and it's a dialogue. -- sometimes it's frustrating, but it's certainly accelerating a lot of decision, including all the store closures where we see that there was underperformance or for example, the move we made on the sellout of some assets that we had built with both a few years ago. So this is a very, very good example. But we have to get organized now into S&OP. That's another typical thing. There are hundreds -- I mean, I can tell you, every day, it's getting more and more collective work. I mean you -- my thing is not about the group and the brands, right? It's about the collective work that we do. It's a we thing, right? And I don't know if it was clear for a thing. The old story is we build a machine where the group is there to build efficiency, okay? And the brands, they have the mission of mastering growth. It's like in a football team, you have defense and midfield and you have attack. There's nothing -- yes, that's the way we see it. But we play as a team. That's important to me. And it's happening, to be honest.

Two questions, please. The first one, you -- at the start of your presentation, Luca, you mentioned the changing Chinese luxury market. You said more selective, more experiential, more digital, less outbound travel. You also announced this morning the investment -- minority investments in the Chinese ready-to-wear brand cycle. Can you give us some example how you adapt to that changing Chinese consumer on the ground, particularly at Gucci very concretely? And are you seeing any early signs of traction? My second question on your financial ambition, your group EBIT margin target doubling from 11% last year. So let's call it, 22%. So that's 11 percentage points expansion cumulative. How do you break that down between gross margin expansion and OpEx leverage? You gave some levers earlier. Is that relatively balanced between the 2? Or would that be more gross margin, which has been quite depressed over the last 2, 3 years?

Look, I'm going to answer first to the second one. We said that we would more than double, more than double in percentage medium term. So at the horizon we mentioned before. That's what the models calculate right now. And I think the whole idea is a little bit like -- there is a lot of room for efficiency in -- also in OpEx, right? We are trying to reduce, obviously, the retail network because part of it was very inefficient. So the money that we save, we put back on the things that matter, right? That's why we feel that we can with the double effect of, let's say, of a top line that grows because the thing is the 5% or 6% is calculated in percentage. And the fact that we become more efficient, this is true for many things, even on IT. I mean, when I discuss with [ Pierre ] also newcomer, things, I don't need more money. I think I can do that with -- we have the money that we can maybe have 7%, 8% productivity on the thing, and then we invest into the store. So that's a good news. So -- but of course, if top line grows as they should, okay, of course, the finance of the thing would come from the margin. You want to add something, Jean-Marc or...

Yes, improvement of EBIT margin.

Armelle is the CFO for the one, and I think she's very famous. She is very famous. Maybe I will.

So of course, the top line growth will provide some operational leverage. There will be also some cost efficiency coming from the store with the rightsizing of the network, we are going also to -- we are optimizing also the operating model in retail. And half of it will come from organizational efficiency and also the benefit that we will get from the group platform. Luca already mentioned what we will benefit from logistics, supply chain, but also marketing efficiency that will provide also -- and in terms of brand margin, we will have some benefit, but we will also reinvest in the quality of the product. So all in all, it will be -- you will see some improvement, but most of the improvement will come from the OpEx.

On China, do you want to answer because the mention was on Gucci.

Yes, sure. How -- what are we doing in China? We basically apply deeper all of those functions. China for Gucci is a country where more than anywhere else, we need to restore brand desirability. You see our performance in America, driven by the fact that the brand desirability and the brand equity is super high. China is a place where from being high, we went down into brand desirability. And we opened too many stores, and we didn't react to that. The point that Luca made is like the capability to see and to measure your brand desirability and react immediately when you see that it's going down, didn't happen and we are reacting now. Starting the stores and closing the stores that are unproductive, reclassifying the stores exactly like Luca said, with a new measure and classification of customers, the Fashionista, the opinionated investors that he was mentioning are being activated by zone in a different way. Of course, for Gucci, the Fashionista component is important everywhere. But for sure, in China, the opinionated component is the one that we need to win over first. Adapting the communication. That doesn't mean changing who Gucci is. But for example, if you followed what we did with the launch of Lafamilia that was our first hint about the vision of Demna for Gucci, the communication for Lafamilia was absolutely adapted to the China market without changing the meaning of Lafamilia representing characters and archetypes. At the same time, we are reviewing the offer. What you sell at the best sellers in the China market are not the same of the rest of the market. There is debate that is pretty common, but China is a market where icons have a value, and we have mistreated them a little bit in the past. So we are working very much on communicating our on better, working on our on better, not all of them, the specific products that work better, but also following the trends. It's a market where some new products performed really well. I can mention to you the Borsseto, the Boseto and black leather. It's a new item in handbags that is showing very promising sign. At the same time, icons on the past, best sellers from the past are being improved. I can mention the Marmont where the leather has been improved, leat the quality of the accessories has been improved. Emblem, where some of the SKUs are very important for the China market because they represent what Luca mentioned as the core, those products that are not icon. They are not for fashionisters, but they are core functions and embedding the brand. There is work to do, but we are on the right track. And the measures that we are having is that in the stores that we consider the most important and then we call laboratory of retail excellence and where these actions are implemented first, all of the KPIs starting from conversion, retention, number of ticket, UPT are growing and they're growing faster than in the rest of the network. So this is for us a test and try situation that we're going to apply faster to the rest of the stores.

Of course, each one of the brands has different challenges. So maybe I don't know if Saint Laurent has a potential to grow because that is not very well known, and that's why we say I want to have a little bit more focus on China or Bottega Veneta also potential Bega is already strong. So it depends on thing. So I don't want that the Gucci case is specific, I think, to China. That's one of the area where we really have to concentrate to bring it back where it deserves.

Hopefully, you can hear me. Congratulations on 3.5 hours, I think, of marathon performance. Two questions, quick ones really.

I go to Milano the next time...

I had 2 questions. Firstly, if you can unpack that stunning number, the 20 points improvement in full price sell-through, is that core? Or is that group, only core sales or overall group sales? And within that, can you perhaps put that into context in terms of what it would have been like how much higher than 2025 the peak pre-COVID would have been so we can get a little bit of a sense of a context, historic context? And my second point.

I'm not sure I understand the second question.

It's the same question. Essentially, if 2025 full price sell-through was something like 70%, where would it have been pre-COVID at its highest level in essence, so that we can understand the 20 points trajectory, which is remarkable. And it sounds like given that it's not going to be a big lever for gross margin, there's going to be a significant reinvestment into quality of product. And the second question is around where are you going to take from the marketing budget to reinvest into China. There's obviously a big redeployment in China. So what are you taking away from in order to make space for that?

The easiest one is the second one. I think when you look at the mix, investment mix in marketing, we were very much into below the line or things that would not necessarily drive traffic, just like -- so we have to -- we are renegotiating all the media contracts. We are negotiating the contract with the agency trying to concentrate typical things that don't go to the consumer. So there is a huge -- the huge impact, okay, coming from this money that we can reallocate. Of course, you have also an effect of the top line going up because marketing investment is measured on percentage of the turnover we used to do until now because just for your, let's say, knowledge, but we actually didn't really have a marketing practice at the group level. I mean we would mix up communication and marketing. This I don't accept because these are 2 different disciplines, right? So we just had hired Federzaid.e was the Managing Director of one of our competitors, and he's actually establishing a real marketing practice. And as we said in French, marketing is [indiscernible]. So you need -- it's about exactly doing it and measure customer measure how you put the money. So I think there is a huge improvement that will happen, a lot of opportunities, which money we can reallocate. On the 20 points, et cetera, et cetera, the only thing if any of the colleagues who want to add because they are better than me and that, but the only built bottom-up with a very granular analysis of each one of the categories in every market in all the channels. So I actually was very, very impressed because we did those brand platform playbook I mentioned before. These are documents of 400 pages each one of the brand team had to do in the last weekends and vacation, et cetera, et cetera. But they are very granular thing. So it was -- it's coming bottom up because they analyze. I don't know, maybe you can -- as you are very good at that, maybe you can give us the answer for everybody.

Maybe to build on this, just to add that thing about we sell what we produce and produce what we sell, which is a new mantra. Second of all, we'll give more incentive on our teams on the inventory at the end of the season, which is also going to be a game changer when it gets to inventory and sell-through management. And last is also at Saint Laurent, making sure the share of icons, iconic product, the ones that are permanent across all categories is increasing up to 30%. And I think that's going to be about making a difference.

I'm Laure Bismuth from HSBC. I have a question about the sales outlook. When you say that you see a gradual market outperformance on the sales growth, what is the industry growth you are assuming? And going forward, or do you see that evolution between volumes, price and mix? The second question is about the jewelry business. Today, the business looks very much skewed towards Asia in terms of shares of sales. Is there a plan to make it more balanced regionally? And could you continue some acquisition of brands in the jewelry business?

Look, I'm going to make a short answer because I see there are a lot of questions, so I want to leave the space. But we assumed the most conservative estimation on market -- total market development. I think it's like the lower part of the thing is around 4% growth of the market, okay? So it's embedded in the model just this, okay? Also, the other, let's say, assumption we took into the plan was not to count on inflationary, let's say, phenomenon, okay? So we actually -- we assume that price would not increase, okay? And this is the base of the model, right? I want to say one thing, which I always say also this to the people, don't worry about where the market goes, et cetera, et cetera, because the real rate is on ourselves. Remember that we lost 25% of the business. So if you just go back to where we were in terms of market share, I think we'll be better off rather than worrying about what's going on in general, yes. So it's a market share game, this thing. And market share means that if you want to take market share from others in a constrained market, you got to be operationally better than your competitors. That's why in the whole 2 hours, 3 hours, et cetera, I actually insisted a lot on many, many things that will make Kering stronger strategically because we have the right intuition, we're putting the money in the right places, but also that will become a much more performance machine. right? Because of this, it will be a market share or let's assume that. If we then are lucky one day, then the market goes back, but we don't count on it on the plan. It has to be very clear to everybody. It's an opportunity.

And jewelry?

Jewelry, I'll leave it to Jean-Marc.

Thank you, Luca. You're totally right, but I think that you have to -- I will start with the jewelry brands because don't forget that in the growth of the jewelry business, there is also a significant contribution of the fashion brands. And by definition, the fashion brands have a better, let's say, balance in terms of geographical coverage. And as mentioned by Luca, there is a big ambition on the Gucci side. If I come to the jewelry brands, of course, there is a distortion due to the fact that we have Selin, which by definition is principally Asian, but also because if we think about Boucheron, which is the main one among the jewelry brands, it's a brand that has been very successful in the past in Europe, Middle East, Japan and more recently, Korea in good development as well in China. However, the time horizon in jewelry is not exactly the same as in fashion. So you need first to build more legitimacy to work on the product assortment. We have some iconic lines already. We have some legitimacy as well in high jewelry, as you can -- you may assume. But to penetrate further America, we need to continue to work on the lines on high jewelry. So it's part of the plan to expand in the U.S., but it will be very gradual. And let's first capitalize where we are already strong to continue to build legitimacy for our jewelry brands.

It's Antoine from BNP Paribas. So 2 questions. First of all, specifically on Gucci. I did the math from the slide. So by category, you seem to be wanting to add EUR 2.1 billion in sales. So am I correct to think that you're targeting EUR 6.2 billion equal EUR 8 billion...

Can you please...

For the Gucci brand, in the slide, you mentioned that you wanted to add, if I'm correct, EUR 2.1 billion in sales, adding the categories. So is EUR 8 billion the target by 2030? Or are there any other moving parts? And then assuming you reach the around 22% margin by 2030, what would be the ranking of opportunities.

Don't take it literally...

I mean let's be qualitative or just a picking order of which brand you think has the highest potential even beyond 2030 between Gucci, Saint Laurent, Balenciaga and Bottega.

Look, I mean, yes, we don't -- we actually don't give -- we don't want to give guidance on top line, right? I'd rather talk about the fact that the plan is a plan that tries to target first an improvement of the quality of our business. So we want to -- I mean, I think you define luxury brand because you make money, right? That's the first thing. So the whole thing is built to raise the level of EBIT to to a level, to a threshold that qualifies you into the category of luxury brand, okay? And I'm not going to be a little more precise. When I look at the -- let's say, most of the brands, of course, scale matters, okay? So take a brand like Bottega Veneta will benefit from expanding its business because from a certain threshold onwards, then Bottega Veneta will be able to afford a decent investment in marketing in all the regions, a very good team, building offices, paying for the store, et cetera. So that's what we see. So Isla is a good position on profitability. We will continue to improve because it's going to grow. Bottegaeneta will recover because they have a relatively low level of EBIT. And I want to bring them -- I think this is a brand that should be one of the most profitable because of the nature of the business. And for sure, Gucci has to be in the game when it comes to profitability, especially if we recover some and we do the right things and the right mix of products, et cetera. So that's what we see. So what you can -- in some -- first of all, you have all the brands profitable of the group, all of them. Otherwise, I inject them from the system, okay? Or -- and all of them at the level that defines that we are a luxury house. So we make money. Is that fair enough? And this is what comes out of our, let's say, plan.

Oliver Chen, TD Cowen. As you think about aspirational customers, what are your thoughts for the magic and the logic and perhaps linking to healthy aspirational customers in the context of customer lifetime value? Second question is, as we think about Agentic AI and neural networks, how do you see that impacting the financials AI and a subtopic is longevity, luxury is longevity.

I'm not sure I understand the second question. It's very.

Well, AI, how will it have the most impact financially? And will longevity be a big deal or a small deal?

I think potentially longevity could be a big deal, but we are not at the level of maturity of our thinking also with our partner, to [indiscernible], to come up and tell you clearly this. What we see is a very fragmented market. And what we see that there's no, let's say, universal global trustworthy, scientifically proved protocol established by anybody, okay, with high frequency of interaction with the thing. Because if you go into a kind of longevity clinic every 2 years, 3 years, et ceta,'s not the same of entering really a daily protocol where you impact your health, okay? This is the ambition, okay, that we have. And I think it's going to be a big thing, right? And I want Kering to be one of the groups that engages something because this is where -- if you look at the world from a, let's say, not from the perspective of the credit card of a person, but from, of course, the level of bank account, but the person itself, people will put money on this. We already see it. We see growth on wellness that is double digit, consistent, and it is coming from top-tier customer first and then going down. So I think that it's going to be big. Second, on AI, simple concept. We structure the thing and also in terms of, let's say, infrastructure. And what I say to the people, 3 things: follow the client, follow the product, follow the money. So these are the 3 fields of application of AI. Very simple. So -- and yes, I think it can fundamentally have an impact, a huge impact on the -- I mean this is an industry that I don't want to -- but produces 2 to 3 products to sell. I would do that in the automotive industry. I would be bankrupt after 6 months. So there is a huge -- when you start to center the production with the demand where you put the product, the speed of the thing. Of course, yes, the cost of the product is not as fundamentally because it's a function. But still, it's a machine that needs to run. And I think technology can help. I really believe that, and I see it from the numbers. And you had another question -- one of the message that we are giving is, of course, you need to have a balanced, let's say, structure of consumer. Very important for us is that we now have a similar segmentation in the whole group, very important. So we had a different segmentation. This is not an industry where you have a kind of syndicate research, et cetera. So it's very difficult to -- everybody is its own thing. Unfortunately, this is the reality. So we had to build our segmentation. We try to do it with independent institution. And we actually have those main 3 categories. I believe that we have been focusing a lot on VACs and aspirational consumer in the last 10 years, maybe forgetting the core of the luxury, which is people with money that maybe they are not spending.

We gave them a bit of grant...

Yes, we gave them -- so I think we need to go back and refocus on the core luxury consumer. And yes, that's basically the message that I can give you now.

Battistini from JPMorgan. I have one question specifically for Gucci on Gucci. You talked about the overreliance on the aspirational consumer and the segmentation between among top-tier clients, core and aspirational. I was wondering if you could help us on understanding right now roughly where the split sits? And over time, where do you want to bring that segmentation to just roughly as an indication? And then a question on margin progression, maybe for Arne. On the -- how to think about the cadence of this margin progression? Should we be thinking as more back-end loaded as growth accelerates later in the plan? Or maybe as the rents come out as you close stores, we could be thinking about a more regular cadence?

We don't give the split by customers. But what I can tell you is like most of the customers that have been lost within Gucci are the aspirational ones because attracting aspirational customers goes with brand desirability because they aspire to something that they desire. So whenever you lose brand desirability, the first chunk that goes away, talking about the brand itself and not the economics of the world are the aspirational customers. So we have lost most of them in the areas where the brand desirability is the lowest, typically what we were explaining before, China and Asia. What I can tell you is that the part that at the moment is reacting the fastest is the top. Luca was mentioning the fact that Gucci has high teens share of the business made by the top and the aspiration is to get to 25% in general for Gucci. We are trending in the right direction, very important in all the markets, which means that what we are doing resonates with the people that we know very well and then we know how to talk to. The part where we really have to concentrate is the core because by igniting brand desirability, aspirational will come. And in the slide of Luca, there was something very important. It was with an aspirational and younger because people tend to confuse aspirational just with young customers. What they have in common is the price point. But in reality, you can have aspirational customers at every age because they simply want to engage with the brand. So what is more in our hands and where we have to perform is the core because those are people that have already shopped with the brand. But if you study and you try to engage with them a little bit better and all of the systems that we put in together, the trial that was done with AI for Gucci was focused on the core, helping the sales associates to engage with them will be the main focus for Gucci across the board.

Regarding margin improvement, so the improvement in margin will be gradual based on the top line, but also on the efficiency, partly on the rightsizing of the network, but also all the other elements that Luca mentioned. And it will start this year.

Let's go to #2.

This is Liwei Ho from CICC based in Hong Kong. I have one question on Wireceell. So you have an ambition to double your revenue in Asia by 2030. So given Wireceell's DNA emphasize onhoue,ress more of a formal at higher. But leaving in China, I felt this strong trend of casualization or dress down since COVID, which is distinctly different from what Wireceell represents. And some of your peers have tap into that potential and reap rewards. So this is a philosophical question to pursue this ambition in Asia, especially in China, to what extent will YceL adapt and localize. And so this is something that I think is very important to stay true to your own DNA, but also grasping the chance that you have in China. That's just one question.

Thank you for the question, which I also feel is fair. This is a question we are currently assessing at the brand level. It is true that the brand is a bit Western-centric. So we are gradually working towards making the brand more Asian, speaking more the language being more aligned with the culture and being more relevant for clients. It's also true that we are underpenetrated in Asia overall. When you look at China, for example, alone, -- we have started our first operation in 2010. So it's fairly recent. We opened our first store in 2010 in a Tier 2 city in China, if I take China as an example. So it's about doing a catch-up, and we need to do this fast. Our plan is to execute a retail rollout of the new store concept. At this point, 30% of our stores have the new image by the end and at the horizon of the plan -- at the plan horizon, sorry, will be a 90% rollout in terms of store concept. And this is to build on the Landmark Hong Kong store, you may know, and also the one we opened in Beijing, San Laurent that are proven being successful with being flagship store, Tier 1 city and being with the new store concept. We'll also reinforce the main pillar. Men pillar is quite important for Asia, especially for China. We'll also make sure we will be more locally relevant, back to your question, appointing and choosing the right talent to work on an influence that resonates more locally. And last, we'll make sure the brand is also more proactive into the local cultural moments such as what Luca mentioned earlier, Chi, Lunar New Year, where at this point, we are doing this, but we are not fully committed to it. And this is my commitment to change that. Thank you.

I may say, if I can add, you wouldn't want to make something that is not true to the image of Saint Laurent. Saint Laurent is very cheap, very. So you have to stick throughout the times and of course, adapt and do the things, but it's also true that you need to respect a certain identity of the brand and not just follow fashions, right, all the time. But there is a lot of things we can do, the team can do to adapt the thing. For example, we don't have a lot of offer in the daywear I think. So that's what we're doing. So that's what they're doing.

And we will also tell our story in the market and show ourselves in a different way. And you mentioned a brand event, a brand show in the coming months. So this is something we'll do as well to present ourselves in a different way, not compromising nor the brand image nor where we're coming for who we are and where we're going.

Petrova, Barclays. You talk a lot about your network optimization being central for a turnaround of Gucci as well as Kering as a whole. You also mentioned that some of the stores which went through these new initiatives are generating double of the sales densities. Do you think it's fair to directionally think about EUR 45,000 of sales per square meter for Gucci, the peak we saw in 2019 to 2021? And as a follow-up of the same questions, when we think about personnel expenses, you had headcount reduction of over 3,000 employees last year. Is it also fair to assume that store optimization program could lead to another 4,000 to 5,000 of employees of savings going forward? And my second question is on all the AI initiatives, which obviously look very new and very impressive to us. What makes you believe and any anecdotal evidence would be great that the organization is ready for such a technological change?

The organization is not necessarily ready for that because we need to -- of course, we have some special inside, et cetera, et cetera, but I think it's some new thing that -- but I believe in it because I already did it in organizations that were resisting to such kind of transformation. I already did this thing, right? Not a long time ago. And I could see the impact on the way the system was working because of technology. So I'm a believer. -- right, into the thing. And any nation, any company that refuse technological process -- progress. Normally, it never ends in a good way, right? Technology, it's the base of our modern society and why not using it. For the sales density, I think you can assume that, that's a level that defines a well working store. So yes, of course, we are bidding for all the brands to get back to a certain level, but also because the starting point for us is very low and in terms of average sales density. So we are the anomaly -- and by doing this, we will get to a normal situation by doing -- allow me not to speak about people reduction, et cetera, because this is very sensitive. I don't think it's the aim of the story. We also have to say that this is something I learned, but you still have -- in retail, you probably have 25%, 30% of churn every year, right? This is not true also for our brands. So in 3 years, you change completely theoretically, right? The most -- let's say, the most challenging thing is when we close a store because in that street, it doesn't work, and there is another one at 4 kilometers is how I get the best people in the store that we close and I use it for other stores. And one of the opportunity we have right now is that we are doing that, all of that at the same time between all brands, and we are favoring internal mobility between one brand and another, which we didn't do before, right? So maybe I close a Gucci shop and they have a very smart sales adviser, and I can move it to kind of a shop that is 200 meters away that is from Saint Laurent. We would have not done this. And that's the advantage also of the group. I mean they can even change category if they want, right?

Thank you, Luca. I will end this Q&A session with a very last question with #3.

Anyway, we are here even later, so don't worry.

[indiscernible] from Horizon Capital Milan. I have a question on the strategy on wholesale, but just because we see some bit more positive results. And how much is crucial to be well organized on that side. Also looking at the connection between the network and the store network, so the closure and the right wholesaler to give your product to sell for having a better control of price as well, especially for the grain market issue we know is a reality for every of you.

I mean here, you have big experts about the things. So maybe I'll let them maybe complement on what I'm saying. I think that in general, it seems that the wholesale model in some regions of the world is like entering in a crisis. You still have places like I was like a couple of weeks ago into Japan or Korea, where wholesale big malls thing are still holding a very strong position. So there's no way you get out of this thing because it's what the consumer wants. So it depends on the region, it depends on the thing. I believe personally that having a long-term partnership with a very selected number of retailers in a qualitative way, it's a good thing. And it's also a way to pulse to feel the pulse of the market. What is working, what is not working, you're there in direct competition with others. So it's always good. So the idea of 100% retailization of the thing for me is a little bit too extreme. And as much as like when in luxury, they tell you how about e-commerce, e-commerce. No, no, I think it's commerce is also important for reach. And wholesale is you feel how strong you are because you are 10 meters away from a direct competitor. So if you are good there, it means that you're doing things well. That's all important for me. Yes. I don't know. I mean, if you guys, some of you want to.

Yes, I can integrate. But yes, I mean, the wholesale network allows you to reach a customer that does not necessarily come to your stores. So it's a complement of a window, let's say, then, of course, allows for a closer competition. So you have also additional information that you need to steer the development of the future collections, et cetera. But then you need to be careful not to overheat the system with too much stock because the brand desirability applies also to their stock, not only to the retail stock that we have. And therefore, you need to control to prevent parallel and liquidation behaviors that you don't want to have.

Luca, back to you for the conclusion.

No, I want to -- of course, I want to applaud to your resistance even because it was a long section, very intense. I think Pier Paolo wants to go and smoke a cigarette like longer like this. Yes, go. You can go go. And I want to take, let's say, opportunity to also, of course, thank everybody, the team because behind this, there is a work of a lot of people, okay? And all the plan has been written not by me, but each one of the teams of the brands, the team of the function, and then we kind of orchestrated the thing. So it's a bottom-up story. In my experience, when plans have done like this, they work because that's what the people have put black and white, not a top-down thing done by a limited group of people with a strategic consultant that this is done in a different way. And yes, so I want to take everybody that -- thank everybody for the work that technicians, Alessandro that made this unbelievable presentation. This is all 3D. I don't know the complexity of this thing. Filippine, Joel, everybody because everybody contributed Laurent and the team B, it was fun. But now the most important part of the story comes, which is execution and delivery of the plan. But we are all united. We are all convinced, motivated, realistic, humbled by the task. But yes, that will be not my first turnaround in my career. And I hope -- yes, that can be the best one. I hope. So thank you very much, and thank you, Francois, for being with us.