As at 15 October 2025

Executive Summary

Key highlights

In this report, we look at GRT’s FY25 results and assess its implications on our current view.
Financial results at a glance:
•    During the period, group revenue was up 1% and beat market expectations. This has been a signal of a turning point in the business within a sector where the market had luxury fatigue set in.
•    Wines and spirits (7% of revenue) were up 1%, boosted by the performance of wines while cognac’s performance was hindered by the trade tensions between China and the US, which remains a key market for the category.
•    Fashion and leather goods (46% of revenue) was down 2%, sequentially improving from 2Q25’s 9% decline, driven by improved tourist spend, particularly in Japan. Brand strength has been the highlight of performance with new lines and partnerships boosting segment performance.
•    Perfumes and cosmetics (11% of revenue) were up 2%, where new releases from Dior and Givenchy played a hand in performance. This has highlighted brand strength in the segment being a driver.
•    Watches and jewelery (13% of revenue) was up 2% driven primarily by jewelry through Tiffany & Co. Watch performance has been mixed with the general trend in the sector being negative as seen in Swiss watch export reports.
•    Selective retailing (22% of revenue) was up 7% primarily through the performance of Sephora. The segment continues to be a stellar performer with its position in Sephora being the highlight.
•    Regionally, revenue over the third quarter was split as 27% Asia excluding Japan, 25% United States,18% Europe excluding France, 14% Other Markets, 8% France and 8% Japan.

Analyst thesis

Our recommendation is based on:

•    Its diversified global exposure in both soft and hard luxury along with exposure to luxury beverages provides some stability against shocks from input costs and demand trends.
•    A positive wealth effect has supported high-net-worth individuals given the performance of the markets the past three years.
•    The business appears to have reached an inflection point across regions and segments positioning it well to recover and drive growth in revenue and margin (GP, operating and net income) expansion.
•    Continued brand strength has been a driver in maintaining its customer base and retain growth.