Good day, and thank you for standing by. Welcome to the Prada Group first half 2024 results presentation. At this time, all participants are in listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, please press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be aware that we'll take and answer one question at a time before moving to the next question, and please also note that today's conference is being recorded. I would now like to turn the conference over to Mr. Andrea Bonini, CFO. Please go ahead, sir. Good afternoon, everyone, and thank you for joining Prada Group's first half 2024 results call. I'm delighted to be with you again. Alongside me today are Mr. Andrea Guerra, Group CEO, and Mr. Lorenzo Bertelli, Group CMO and Head of CSR. Mr. Guerra will start today with highlights for the first half of 2024 and a business update, followed by Mr. Lorenzo Bertelli with an overview of our marketing activities and ESG initiatives. I will then present our financial performance before Mr. Guerra signs off with some closing remarks. We'll then move to Q&A. Before we start, please be reminded that during today's call, we may discuss forward-looking statements, which are subject to risks, uncertainties, and factors beyond our control, that could cause the actual outcome and returns to differ materially from such statements. Please refer to the disclaimer included on slide 2 of our presentation. With that, I will hand over to Mr. Guerra. [Foreign language]. It's a great pleasure to be here with you. On one side, it's by definition tougher. Current macroeconomic situation is no longer so positive as it has been for a long time, and I think it's also worthwhile not to forget what kind of an incredible decade this industry has gone through. So for sure, current macroeconomics is a little bit tougher, maybe tougher, but there is a lot of opportunities in the market yet. As Prada Group, we continue 2024 on a positive stance, and we finished a solid first half of 2024, top line and bottom line. Month after month, we have been leaving a similar growth rate, and we finished the semester with retail sales at +18, and an EBIT percentage increase into 22.6%. Both Prada and Miu Miu have moved through Q2 with same velocity as Q1, so this means that the two brands are strong and have a voice in this specific period of the world. As a group, we're continue to work on sharper position and capturing unique identity on Prada and Miu Miu. For sure, this is a period where identity, position, desirability of brands make the difference. We have substantially increased our branding investments as well. We're constantly trying to elevate, motivate, upgrade, train our people in our organizations across the world. We think that this is critical, and we feel that this is, this is even more critical in this period of time. We discussed about our journey in retail excellence. We're happy to remark and to say that we reach today a different level. We still have a huge gap comparing with the best in industry, but we are improving, and we are proud of our improvements, and we feel that the most difficult part of the job, which was the beginning of this, the creation of the toolkits, the creation of everything that was needed for this journey, it's over. Now we need to keep on doing it and doing it well. Last, but still pretty important, we kept on with our CapEx on digital infrastructural IT evolution of the group, and we are happy of our progress, of our efforts in this field. And again, at the end of this year, and next year will be another big chapter of evolution. A couple of comments on Prada and a couple of comments on Miu Miu before going with Lorenzo in a more specific manner. On Prada, I would say that what has happened so far is really a great long-term journey on a brand strategy, uniqueness, and creating bigger and more solid roots in the cultural world, and these roots are stronger day after day. Collections are strong, products are strong, and we keep on having this strong traction on ready-to-wear and footwear on one side, and we keep on evolving, and we keep on getting stronger on our leather goods. On Miu Miu, it's tough to say something in specific because when you have such results, it's tough to say this was good, this was better, this was excellent. So... What is important is that this is not just something that popped up. I would say that this is a result of many years of work on the brand, on the products, on the people, and today, the strength of Miu Miu, it's obviously the brand, it's obviously the silhouette, it's obviously the look. Team effort, teamwork, to be able to serve clients growing at this significant rate is for sure one of the most important things happening in this last couple of years, and we got no shortcuts in front of us. We remain humble, we remain non-complacent, and we know that once we go over and over, the likes for likes will become even more difficult to face. But we are positive, and we, we feel the responsibility. Now, let me give the stage to Lorenzo, and I will come back for the closing remarks. Thank you, and good afternoon. I will start with a brief update on Prada marketing communication activities. Over the last year, our focus on creating impactful initiatives has cemented the brand desirability and fostered engagement with our audiences. Prada continues to drive interest with acclaimed fashion shows. Both menswear and womenswear collection were very well received, confirming the brand's creative energy. New campaigns featuring celebrities such as Scarlett Johansson, Emma Watson, and Benedict Cumberbatch further boost the brand influence. Prada collaborated with renewed partners to amplify the brand values and widen its audience, fostering engagement. Distinctive events and activation nurtured Prada-ness and its global reach. This include the exclusive third edition of Double Club in Los Angeles and another successful iteration of Prada Frames, held during Milano Salone del Mobile and curated by Formafantasma. Moving on to Miu Miu. Excitement continued to grow amongst this community, thanks to highly successful fashion shows, impactful collaboration, and engaging worldwide events. The launch of the brand's 2024 leather goods campaign, starring Gigi Hadid, supported the iconic bags Arcadie and Wander, while two other evocative campaigns, Endless Summer and L'Été, were met with a positive reception. Special projects, such as the new fifth edition of Miu Miu Upcycled collection in denim, and the partnership with New Balance and Church's, continued to attract strong attention and contributed in further elevating the brand's visibility. Miu Miu first Literary Club and Miu Miu Summer Reads were two new cultural initiatives, launched by the brand, which reinforces its commitment to nurture the contemporary debate with a distinct voice. Now we turn to our ESG commitment, which continues to be a key driver to the group's long-term growth. As part of planet commitments, we are pleased to have set ambitious target for a transition to lower impact raw materials with an implementation plan progressing well. Other areas of focus in H1 include chemicals management, material traceability, and water risk management. More in details, over 80% of raw material suppliers are engaged with Zero Discharge Hazardous Chemical program. 70% of leather procurement is now covered by traceability system, and we have recently launched a water risk assessment for key suppliers with a target of 80% of engagement. Recognizing our responsibility to reduce environmental and social impact across the supply chain, we have also trained procurement teams and strategic suppliers on our key sustainability objectives. As part of people commitments, we have accelerated implementation of our three-year DE&I roadmap. We have also linked management remuneration to meeting ESG targets for a wider number of our senior executives. As part of cultural commitment, we are pleased to continue our work on SEA BEYOND. In partnership with UNESCO, we successfully launched the first international conference dedicated to ocean education, where the Venice Declaration for Ocean Literacy was finalized by UNESCO delegates and ocean expert. We also established the first SEA BEYOND education module, involving almost 35,000 students in 56 countries, and we committed to spread the values of SEA BEYOND through the dedicated docuseries produced by National Geographic Creative Works. Moreover, we launched the second cycle of the Forestami Academy, the reforestation project of Milan, focused on educating and involving citizens on the subject of urban forestry. Thank you, I will now pass over to Andrea for the financial review. Thank you, Lorenzo. I would like to start with the key financials on slide 12, showing the solid growth and improved profitability of the group over the six months period. The group reported net revenues of EUR 2.55 billion, up 17% versus H1 2023 at constant FX. Exchange rates had a negative impact on net revenues of 330 basis points, leading to an increase of 14% at current exchange rates. Retail sales for the period reached EUR 2.26 billion, up 18% versus H1 2023 at constant FX. EBIT reached EUR 575 million in H1 2024, with margin of 22.6%, showing further expansion versus 22% in H1 2023, notwithstanding an increase in client-facing activities and other investments during the period. Cash flow from operations reached EUR 652 million, and net cash position stood at EUR 265 million at the end of June. Moving to the next slide, the retail channel confirmed a solid trajectory of growth in the semester, with sales up 18% versus H1 2023 at constant FX, driven by like-for-like full price volumes. In the second quarter, retail sales maintained the same pace of growth of the first quarter at +18%. Wholesale was up 8% versus H1 2023, and up 14% in the second quarter. We kept our approach selective with independence, while we continued to see sustained growth in the duty-free channel. Royalties were up 28% in the semester, with growth supported by both eyewear and fragrances. Turning to the next slide, retail sales by brand. We're pleased with Prada and Miu Miu's performances, as both brands continued to register above market growth. Prada delivered a solid +6% growth in the first half of the year, driven by full price, like-for-like sales, and supported by all categories and genders. The second quarter registered a solid performance at +5% year-on-year, despite a tougher comparison base in Asia Pacific. Miu Miu continued on its strong growth trajectory, reporting +93% retail sales growth in the semester. Growth was well spread across all categories and regions, and the brand now contributes to 23% of the group retail sales versus 14% in H1 2023. Good performance also at Church's, up +15% in the semester. Moving to the next slide, in H1 2024, the group achieved double-digit growth across all geographies, except Americas, which, however, improved sequentially quarter-on-quarter. Asia Pacific progressed well during the period, with retail sales up 12% in the semester, with the second quarter up 8% on a tougher basis of comparison and increasing spending outside the area. Europe was up 18%. We continued solid growth of +19% in the second quarter, supported by healthy local demand and high level of tourism. In the Americas, retail sales were up 7%, with Q2 showing a farther slight sequential improvement at +9%. Japan was the best performing region, up 55%, accelerating in the second quarter at +65, driven by solid local demand and increasing presence of tourists. Lastly, the Middle East also delivered a solid performance, up 20% in H1 2024, showing acceleration in the second quarter. Turning to the next slide, gross margin was 79.8% in the semester, 50 basis points lower on the same period of last year, stable, if we exclude the FX impact. During the period, the group generated an EBIT of EUR 575 million, reaching an EBIT margin of 22.6%, in further expansion versus 22% in H1 2023. The incidence of operating costs on net revenues declined by 110 basis points, notwithstanding higher investments, and we had a drag from FX on EBIT too. OpEx increased by 14% at constant FX, mostly driven by discretionary client-facing initiatives, as our primary objective remains to invest in our brands. The increase is reflected both in the higher incidence on sales of advertising and communication, and in selling costs, which include retail activations like in-store events, for example. G&A's incidence on revenue grew from 6.6% to 7%, reflecting the step up in OpEx and G&A from digital and IT investments we've been making, and it also reflects some non-recurring items. Overall, looking at the second half of the year, we continue to expect OpEx growth to moderate. First, A&P should be less second half weighted than last year. Second, we'll start annualizing some investments made in the second half of 2023. Finally, net income reached EUR 383 million, an increase of 26% in the same period of last year. CapEx for the first half of 2024 was EUR 169 million, as we continued to invest in retail, IT, and our industrial infrastructure. On the retail side, over the period, we completed nine openings and 36 renovations and relocation projects, further elevating the in-store experience of our clients. Excluding retail, the remaining CapEx included EUR 15 million for industrial initiatives as we continue on the path of vertical integration, strengthening our manufacturing capabilities, and EUR 32 million related to IT projects. Moving to the next slide, net working capital increased by EUR 45 million to reach EUR 780 million, and overall remains stable as a proportion of net sales at 16%. Net financial position. Last slide, the group retains a solid balance sheet with a net cash position of EUR 265 million as of June 2024. I would note that we benefited for circa EUR 67 million in a shift in the tax payment deadline in Italy from end of June to beginning of July. With that, as I said, my last slide, I will now hand over to Andrea Guerra for his closing remarks. ...As the slide says, we are reiterating our ambition to deliver solid, sustainable, and above market growth results. I think that this solid line says it all. This is our commitment, this is our effort, this is our work day after day. Priorities are clear, and let me say at the end, boring. They are always the same, no changes on our priority. Market are not easy, therefore, we are every day more vigilant on one side, and on the other side, we are training ourselves to be even more agile, week after week, day after day, month after month. So I think that we have a long journey in front of us, and we're ready and responsible in delivering what we have to deliver. Having said so, I thank you for having listened to us, and, I think now we move to Q&A. I give back the word to operator. [Foreign language]. Thank you. As a reminder, to ask a question, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, please press star one and one on your telephone and wait for your name to be announced. Please be aware that we'll take and answer one question at a time before moving to the next question. Thank you. We are now going to proceed with our first question. The question comes from the line of Edouard Aubin from Morgan Stanley. Please ask your question. Yeah, good afternoon, and congratulations for the, the solid set of results. So first question for me, Andrea, if you, if you would be kind enough to please comment on kind of, you know, your exit rate and, and how the, the third quarter, you know, kind of started. There are talks about, you know, demand in China being quite weak. Are you able to offset that with, you know, spend by Chinese, abroad so far in the, in the quarter? And sorry, just one question related to that, is your comp base is getting a bit easier in the second half. So for example, if we look at the, the Prada brand, you, you grew 18% in H1 last year and 8% in H2. Should that therefore lead to some acceleration, or that's not the way to think about it, in terms of the easier comp base? So that, that's my first question. Thank you. Hi, it's when you ask Andrea to answer, there is always some concern. Sorry. So let me take it. So the first part of your question, I would say that in this... In July, basically, we have seen no major or drastic or whatever change in the trend. I would add that China has become a little bit more complicated, and most of the other regions, a little bit easier. So this is how I would position it. In terms of easier comps or more complicated comps, I think that 2023 was referring to a year where closes, closing and openings of Asia and China created easier or tougher comps. So, I think the trend today, the weekly trend, is pretty clear. I would agree that August could be an easier month, but September, October, November, December were pretty tough in terms of comparison, so I wouldn't, I wouldn't go there. Understood. That makes sense. And my second and last question is a relatively long one, so just one. On Miu Miu, so it looks like, you know, you guys could, should exceed EUR 1 billion of sales this year. If you look at some of your peers, the Fendi, Celine, and Balenciaga of the world, they are kind of, you know, around EUR 2 billion, some of them a bit more, some of them a bit less. So if you look at, you know, the heritage of Miu Miu, kind of the aesthetics, the credibility for the brand to expand its product range, you know, is that within the realm of possibility in the medium term, you know, EUR 2 billion? Obviously, I'm not gonna tie you up to any date, but, you know, as the brand, you know, the potential to reach that type of, you know, of sales within the medium term. Thank you. You know, the ambition is always there. So, whatever number, big number is in our heart, not necessarily in our brain. I think there is an opportunity. I mean, if you look to Miu Miu, initial routes were mostly Asian. Today, Europe is competing with Asia in terms of, number one region, and, we begun to focus on North America as well, where we're really, relatively small compared to the brand. So I would say that there is a long, path and long journey in front of us. Obviously, when you got this kind of, growth, the year after, will be a little bit more challenging. Okay, thank you. Next question, please. We are now going to proceed with our next question.... The questions come from the line of Chiara Battistini from JP Morgan. Please ask your question. Hello. Hi, thank you very much for taking my questions. So the first one, I was wondering if you could give us any detail, any color on how to think about the growth in terms of volumes versus price versus mix, and notably within Miu Miu, how much pricing and the mix contributed, and how you see the penetration of leather goods within Miu Miu progressing going forward, please? Thank you. Hi, Chiara, it's Andrea Bonini. Thanks for your question. On price and volumes, pricing, pure pricing, what we've done is first half of the year is in the low single digit, and we discussed this before, that the expectation and of course, you know, we may maneuver around that, but the expectation for the full year is around mid-single digit. We would also expect a positive, if not very significant impact from the mix, and the rest is volume. On the second question, which is leather goods, specifically, I believe your question was specifically in relation to Miu Miu. It was a very strong result across the board, frankly, I mean, across product categories. The performance leather goods make us really, really pleased. Its success, I mean, continued success of the Arcadie and Wander, but also success with the new, newer introductions in the range. So it's a contribution leather goods that is progressively increasing. That is exactly the direction that we wanted to go to. Thank you. Thank you. Sorry, I meant it as a part of the first question in terms of the volume growth, but no, thank you, I appreciate it, two separate questions. Sorry, the second question I had, if I may, just a confirmation on, in terms of your rents in China, as there has been a bit of a debate during this reporting season on... Can I just confirm that your rents are still variable in China, and that you did not renegotiate them? I can, I can confirm that. Thank you very much. There's a significant variable component, yes. Thank you. Next question? We are now going to proceed with our next question. The question's come from the line of, Erwan Rambourg from HSBC. Please ask your question. Yeah, thank you. Good afternoon, gentlemen, and well done on being so relevant and so strong in these tough times. Maybe one market I'd like to come back on, which is the U.S.. You mentioned it's the only market where you're not growing double digits, even though you are improving quarter-on-quarter. I'm wondering, what would make it grow double digits? Is it an issue of awareness? You mentioned to Edouard that Miu Miu exposure was maybe lower there. How can you look at maybe accelerating the U.S., and what can we hope for in the back half of the year for this very important market? Thank you. I'm taking the question, it's Lorenzo Bertelli. No, generally speaking, I would say it's not absolutely a problem of awareness. For sure, the fact that the network of Miu Miu in the market, the penetration is maybe the smallest. And so as Andrea was saying before, in terms of growth for Miu Miu, U.S. is a great opportunity. So you see part of of that point reflected in the growth on the U.S.. Actually, is where we have somehow a lot of complaints on not having enough stores and product in U.S.. Of customers that are looking for Miu Miu, that they cannot, let's say, buy easily in U.S.. So I would say it's not a matter of awareness, it's more a matter of network. You see, generally speaking, that Europe is going extremely well because the awareness is there from the Western consumers, as the traveler, American citizen that is buying the U.S. Miu Miu. So it's not a point of awareness, it's just a point of network. Okay. Thank you. And maybe a follow-up for Andrea Bonini on the P&L structure of Miu Miu relative to Prada, given Miu Miu sales are quasi doubling year-on-year. Can you tell us a bit about the gap in terms of operating margin between the two brands? Where we stand today, and where do you see that going, maybe in the long term? Hi, Erwan. I won't comment specifically on the gap, but I think the trajectory is easy to guess, meaning Miu Miu, we've seen a very significant improvement in the profitability in terms of brand EBIT as a result of the very significant increase in productivity. A s you know, the growth is like-for-like, and therefore, there's a very material impact on that. We discussed this before that however, when we look at the structure of the PNL of Prada and Miu Miu, we need to bear in mind the need for investment and reinvestment, in the sense that Miu Miu is c ertainly in a phase of very significant growth, and therefore, we are very focused on making that growth sustainable, which also means investing and reinvesting in the business in terms of people, in terms of infrastructure, and at some point, also more into new stores. And when we look at Prada, it's a different situation in the sense that you know, we're certainly at a point where there's more maturity, right? In the, in the status of things. So that's, that's where we are. That's where we are, and that's where we are going. I think the significant, the significant, improvement of Miu Miu also, you know, allows us, you know, to, to reinvest, even more in the business as a whole. That's another positive of, you know, being a multi-brand group. Yeah. Thank you so much. Best of luck. Thanks. Thank you, Erwan. Next question, please. We are now going to proceed with our next question. The question comes from the line of Antoine Belge from BNP Paribas Exane. Please ask your question. Yes, good afternoon, or good morning. It's Antoine at BNP. I've got two questions. First of all, I'd like to come back to the spectacular course of Miu Miu, and I was in Malaysia, in Kuala Lumpur, not so long ago, and when I asked the store manager, which were the bestseller, I mean, I think she was basically mentioning all of them. So, my question here is a bit, you know, with a lot of viral stuff going on, on almost all products, how, like, can you sort of control that? And we've seen brand in the past that sometimes, you know, couldn't control that, and, and then, you know, face some issue later on. So, I know it's a difficult question, you not wanting to sell sometimes, but I think you, you understand where I'm coming from. The second question more relates to the Asia performance. Not many, you know, companies reported Asia at, I think it was 8%. So Japan was up 65%. And you're quite reluctant to give figures about China, but, you know, was mainland China still positive within that 8%, and the Chinese cluster, you know, including tourists, would it be fair to say that it was maybe up at least mid-teens in the second quarter? And of course, if you want to give a figure, that would be even more welcome. Thank you. So, at the end, it's more two comments than two questions. I have taken them a little bit like this. In terms of quality of sales of Miu Miu, I think we are putting the maximum effort to define, to put quotas, to analyze the consumer base. I think it's... I mean, in certain remarks, I would say that in this period, maybe we could have sold double. So it's for sure, the brand is very hot, and on the other side, we need to manage things properly and plan the future properly. So, we are doing the best effort from that point of view. In terms of Asia, I would say that in general terms, we as a group, we need to recover market share over there. We have good teams. We have good operations, so it's time to that we recover some shares in that part of the world, always considering what I said at the beginning, that obviously China was tough and has become a little tougher in the past, I would say 30 days. Thank you very much. Next question, please. We are now going to proceed with our next question. The question's come from the line of Thomas Chauvet from Citi. Please ask your question. Good afternoon. Thanks for taking my questions. I have three. The first one on the retail footprint, could you perhaps come back on the closures next this year and the openings next year? So I think you've closed 10 Prada DOS and four franchise stores in the first half, you know, and mainly in Europe and the U.S.. Can you give us how much was the negative sales contribution of these closures in the first half? And then can you come back to your plans to resume store openings more aggressively next year, both at Miu Miu and Prada? How many openings and where? That's my first questions, please. So in terms of, closures, I would say it's marginal. In terms of opening, I would say it's marginal, 2024 as a whole. In 2025, we will have something like a probably a 10%-15% on, on Miu Miu. I would say more 10% than 15%. You're talking about square footage or just the number of stores? Yes. Yes, yes. Okay. Yes, sometimes it's not all Prada store, but it's enlarging actual stores or moving from a place to another in a mall or in a department store. With Prada, I would say that next year will be yet marginal, lower than 5%. Okay, thank, thank you. A second question on pricing for the Prada brand. It looks like you've increased prices a few weeks ago by about 3%-4% in China, Europe, and U.S., and a little bit higher in Japan, understandably. Is this, Andrea Bonini, on top of the low single-digit% you mentioned earlier, and you talked about this mid-single-digit%, is this the kind of pure price increase you'd think of for next year, given the state and the desirability of both of your brands? Thank you. Low single digit first half, on top of which there's another low single digit, which is the one that you're referring to, in the past few weeks, and that brings you to the mid-single digit for the full year that we've been talking about. And then, for next year, we will, we shall see. Okay, thank you. And very finally, on the OpEx and the OpEx leverage, so advertising and general admin expense, due to IT and digital investments were the two cost lines that grew well above sales growth in H1. You said you expect this to moderate in the second half, also universally some investments in H2 last year, if I understand well. So with that ABC now you've improved revenue growth at the Prada brand, the pricing you've mentioned and that cost moderation, I mean, are you expecting a very, very different shape in terms of OpEx leverage in general, you know, EBIT margin expansion in H2 versus H1? Obviously, consensus is expecting a much different shape than the slight margin expansion you've had in H1. Thank you. Much different shape, I think it depends on perspective, so it's hard to say. It's a much different shape. I mean, I wouldn't... What I would say is what we already said is indeed. I mean, we do expect more visible operating leverage in the second half as a... What we can control is indeed on the cost side. And for the reasons that I already mentioned, I mean, we do expect the growth in operating costs to moderate. And then, as you know, the end results is also very much a function of the development of the top line. The bigger picture is the one that we've been talking about for a while, which is priority is growth. We certainly see an opportunity, a significant opportunity in the medium and longer term to continue to expand margins, and that's where we want to go to be with the best-in-class. And ideally, notwithstanding the fact that the priority is growth, we'd like to, you know, continue on the path of the progressive margin expansion, which we've delivered so far. Thank you, Andrea. Thank you. Next question? We are now going to proceed with our next question. The question comes from the line of Louise Singlehurst from Goldman Sachs. Please ask your question. Hi, good afternoon to you all. Thank you for taking my questions. Just two, follow-ups for me, if I could do, please. Firstly, just on the, the cluster performance. You've touched on the U.S. and a little bit on China, but I just wondered, obviously, Europe saw a little bit of an acceleration versus Q1 as well, in Q2. And I wonder if you can talk about the Japanese as well. And I didn't know whether I missed it, whether it was an actual number for the Chinese cluster overall, particularly for Prada brand, or a relative shape versus Q1 would be very helpful. And then secondly, my question for Andrea Bonini, if I could do, please. Obviously you've got the tough job probably having to say no to certain projects, particularly when you've got such high growth at brands like Miu Miu. But in terms of Thomas's question and thinking about that cost shape and the slowdown in G&A, in the second half versus the first half, is that just a reflection of the timing of projects and store openings, or is there a little bit more of a grasp on costs on how you're viewing things into the second half than when we spoke to you back at Q1? Thank you. Okay. Hi, Louise. Starting with the different clusters. Well, first, I'm stating the obvious: if we look at the group performance, very, very good across all clusters, including China. If we just look at Prada, we're also generally satisfied with the performance. We've got overall in the first half the Chinese cluster that is in the mid-single digit. As you know, we talked about a low double digit in the first quarter, and it means that Chinese were flattish for the Prada brand in the second quarter, and that reflects the softer consumer sentiment. There's an element, certainly, of demand and normalization following the years of very strong demand. And there's also the uneven comparison base due to the lockdown reopening dynamics that we know about. North Americans, slightly positive and improving versus Q1. European, we're quite impressed, back in low double-digit rate in Q2. Japanese is also a very good trend in line with Q1. On Japanese, to add a little bit of color, I would add that, roughly we see a split of 65% locals, 35% traveler, and tourists are growing stronger, but locals are holding up extremely well. So overall, I mean, the other comment I would make on the cluster is that if we look at the evolution of sales by nationality since pre-COVID, it is more balanced because we've got sales to Europeans and Americans as a share of the total that have increased. And so it makes it, vis-à-vis Chinese in particular, and that makes it more balanced. On the G&A and the costs, it's not just timing. We discussed that in particular, starting from the second half of last year, we've been very focused on controlling G&A growth, G&A development. And we've been seeing the results of that work. That is focused primarily to have more resources to invest in consumer-facing initiatives and activities and marketing, and we continue along these lines. If we look at the G&A dynamic in the first half, excluding the IT impact that we talked about, excluding a few non-recurring items, the G&A that I'm talking about, I mean, we are already in single digit territory in terms of growth. That's really helpful. Thank you very much for the color. That's great. Thank you. Next question? Thank you. We are now going to proceed with our next question. The question comes from the line of Rogerio Fujimori from Stifel. Please ask your question. Hi, good afternoon, everyone. I just have one question about how should we think about gross margins in H2, the main puts and takes? You reported 50 bps FX headwind in H1, and channel mix also helped. So how should we think about H2, especially the FX hedging component and any other major tailwind or headwind we should take into account versus the 80.5 in the second half of last year? Thank you. So I think that all our introduction and conclusion was about this period, how we are in a period where there is changes, turbulence, things that can be controlled up to a certain limit. So I wouldn't answer to your question. We answered or basically we committed, saying that we will be vigilant on one side and agile on the other side in order to take home our results and trying to be above market growth. I think that this is the maximum we can say today in terms of in terms of general general journey. In terms of margins, in terms of industrial margins, I think this is at what you were referring at. I don't see major differences. Yes, there is some negative FX. Yes, there is. But I would say that, we do not foresee, for the end of the year, any kind of relevant change on our industrial gross margin. Thank you. I was just hoping if you could share with us the Chinese onshore versus offshore mix for the Prada brand in Q2? I think that we said it over and over. China, Chinese in China are a little bit tougher. Chinese abroad are a little bit easier. In general terms, I think Andrea gave a very clear picture, but I would say like that, it's easier for the Chinese to buy abroad, more in Asia than in anywhere else. I think that this is the clean and honest picture of what we are observing today. Thank you. I was just wondering about the mix, if the mix is 60/40, 65/35, mainland China versus outside mainland China? So we're going to the details of the details of the details. Mm-hmm. It's fine. It's 70/30. Thank you very much. Thank you. Group level, not Prada. Next question, please. Thank you. We're now going to proceed with the next question. The question come from the line of Luca Solca from Bernstein. Please ask your question. Yes, hello. I have two or three questions, if I may. Some of your peers, for example, Hermès, were reporting a slower demand, especially in the entry price point of their offer, and that this was visible, for example, looking at sales growth in the silk category. I wonder if you're experiencing a similar trend with aspirational consumers being on the back foot and the higher end of the offer trading better. You have a different category mix and a different fashion position. So I was wondering what you are experiencing on this front, when you look at different price cohorts of your offer. Hello. First, thank you for telling us that we're competing against Hermès. It's good to have the same kind of customers of Hermès. No, I would say that today, in general terms, we are not observing an issue in our enterprise. Always keep in mind that most of our competitors increased significantly their enterprises in the past one, two, three, four, five years. Maybe we came from a lower enterprise, therefore, today, our enterprises are still, I would say, competitive. So I don't think that we suffered in that segment. Hope I was clear. Absolutely. That was very clear, Andrea. Thank you very much indeed. Maybe a different question about sourcing. There's been a news flow from Italy about subcontractor problems that again some of your peers have been experiencing. I'm thinking about Dior and Armani. As I understand, you're only partially upstream integrated, like most of the companies in the sector. How have you been implementing any changes, if at all, to make sure that you're sort of perfectly buttoned up as far as controlling subcontractors and the sub-subcontractors in the market? So the first comment I would do is that this kind of news flow is never positive. I think that in general terms, this kind of news are kind of signals to be able to tie better your your management, your organization, and your systems. I would like to stress one point here, that the group, the Prada Group, was born, as we are seeing it today, 40-50 years ago, on three routes, which were brands, the, the brands, the products, and an industrial soul. From day number one, the industrial soul of Prada Group has been pretty evident. We manage, we own, more than 20 factories in Italy, so I think that the industrial characteristic of Prada is pretty strong. So I would answer like this to your question. Understood. Understood. Yes, of course, I think that Patrizio Bertelli's proficiency on the manufacturing side is proverbial. Maybe a different question to basically ask about the same point. I realize that you're now experiencing very robust growth, especially with Miu Miu, and that you have and that you have significant efforts underway to grow the top line. Do you have in mind a number when you are increasing altitude in terms of growth that you would require in order to be sort of keeping SG&A cost inflation at bay? So is there a sort of growth level, looking forward the next two or three years, that you think above that level, we would be producing operating leverage? Hi, Luca, it's Andrea Bonini. I wouldn't look at it that way. Meaning we... It's a constant work, the one we do on the OpEx line, on the... of which, I mean, the G&A. and we adapt, and when we say we wanna be vigilant and reactive and nimble, I mean, it means that the extent to which we are on the front foot within the priority that you know about growth and continuing to gain market share, but the extent to which we remain on the front foot, on the marketing spend, on the retail initiatives, and so on, of course, takes also into consideration the environment and how we perform on the top line, and therefore, you know, on that, and also the speed at which we act and we move on G&A and on other investments, has to reflect that. And if we continue to perform as we've been performing, we have to worry a little bit less about slowing down on pace of investments, and should we find ourselves in a situation with a different and lower top line, we would act more aggressively on G&A as well. So I don't, I don't look at it in that way, meaning there's a specific number below which, you know, we, we, you know, we act, and up to that point, I mean, we do, we do less. I mean, it's progressive, if you see what I mean. I understand. Thank you very much, Andrea. Thank you. Next question? Thank you. Our next question comes from the line of Oriana Cardani from Intesa Sanpaolo. Please ask your question. Yes, good afternoon. Thank you for taking my question, which is on online business. What is the current weight of online business on retail sales? And how is this business line evolving? Thank you. Hi, it's Lorenzo speaking. Well, today, penetration is around 8%-9%. It depends. It change a lot from market to market, like in the U.S., it's much higher. But honestly, we, we don't look anymore like in terms of online penetration. We, we just we generally talk about full potential. Then, you know, it's always consumer choice accordingly to mix of the category, price point, and so on. So for me, for us, is it's more about full potential of online, so making sure that the consumer, the customer is served in the best ways possible in the stores, and the best ways possible online, then he is able making the choice. Thank you very much. Next question? Thank you. Our next question comes from the line of Chris Huang from UBS. Please ask your question. Good afternoon. Congratulations on the results. I have two questions. Firstly, on the category performance, at group level, I know you shared a bit on the strong traction at ready-to-wear and footwear in Prada, but also, if you can comment on what you're seeing with the jewelry launches you've recently been pushing into? Secondly, on the wholesale growth in Q2, the double-digit growth definitely came stronger than expected. Within this number, are there any impact from shift in delivery timings we should be aware of? Thank you. In terms of wholesale, it's purely a quarter one overflowing on Q2. So I would say that that is the only... That's the only reason, that's the only reason for that. In terms of category, I think that what we said, again, during the introduction is what we would love to say, that is, for sure, our great strength in ready-to-wear and footwear in Prada is even in a period where the leather goods in general for the industry, is not at its maximum and better shape, to keep on attracting consumers to our stores. And on the other side, it is also leather goods to be strong and positive. So I would I would continue to answer like this. Thank you. We have time with, for one more question or one more set of questions, if there's more than one from one person. Thank you. We are now going to proceed with our next question from Charles-Louis Scotti from Kepler Cheuvreux. Please ask your question. Yes, good afternoon. I have only one question, please. It seems that you need to step up your investment on Miu Miu to support the strong growth, but at the same time, you sound confident that the group's OpEx goals will moderate going forward. Is it fair to assume that you are able to leverage the whole setup and infrastructure in place at Prada to support the growth of Miu Miu as well? And if you could also remind us how do you manage the two brands in terms of supply, production, logistics, design, marketing, and what kind of synergies you are able to unlock, this would be very helpful. Thank you. Since a couple of years, we are moving in a direction in verticalizing the two brands with some very special recipes. In terms of brand image, not necessarily always totally vertical. So having said that, more and more, and more and more, the two brands are acting independently, and I would say that today it's 80% independently. And this is the way forward. In terms of Miu Miu, commenting on profitability and margins, always keep in mind that Prada is the main brand, therefore is taking it all in terms of all those support costs that then we divide between the two brands, but at the end, Prada is taking most of it. So if Miu Miu was independent, what kind of margin would that have? It's a kind of philosophical question. In terms of, investments for the future of Miu Miu, here we are. I think that in 2024, we are already behind the brand, fueling, what is necessary to have the next level infrastructure. I think that that is, what we're working on. I was saying at the beginning that we are working heavily on, next spring, Himalayas in terms of like-for-like, because that is where we are going to prove ourselves. So, this is what we're doing behind Miu Miu brand. Thank you very much. This was... I think that this was our last question. So we thank you all, and we're always available for any catch up you need, and see you soon. Thank you very much. This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a great day.