FT : L’Oréal chief plans to more than triple sales of Gucci beauty products

L’Oréal chief plans to more than triple sales of Gucci beauty products
French group will take on beauty licence for luxury brand next year after buying rights from owner Kering in €4bn deal

L’Oréal is aiming to more than triple sales of Gucci-branded beauty products after it takes over the licence next year, as the world’s largest beauty company shrugged off the impact of US tariffs to report record profit margins in the first half.

The French group acquired Gucci owner Kering’s beauty business, which also includes the Balenciaga and Bottega Veneta brands, for €4bn this year.

“Gucci has to become a multibillion-euro beauty brand,” L’Oréal chief executive Nicolas Hieronimus told the FT. “Gucci fashion is significantly bigger than the Saint Laurent fashion brand, and Saint Laurent beauty [generates revenues of] €3bn.” L’Oréal has operated the beauty licence for Saint Laurent since 2008.

Under the stewardship of current licence holder Coty, Gucci’s beauty range generated sales of about €600mn last year, according to a person with knowledge of the situation. That is about one-tenth of the revenues generated by Gucci’s fashion business last year.

Hieronimus said L’Oréal’s first Gucci beauty products would probably be released in 2028, after it takes over the licence in July next year.

The Paris-listed company has already put together a team that will begin work on the Gucci range in September, Hieronimus said, with an initial focus on developing make-up and fragrance products.

Hieronimus added the improvement in Gucci’s fashion sales reported this week by Kering, which has embarked on a major turnaround plan, augured well for the relaunch of the beauty range.

On Wednesday, L’Oréal reported half-year operating profit of €5.1bn, up 7 per cent compared with last year. The beauty group delivered a record operating profit margin of 21.3 per cent despite a drag from US tariffs, which reduced margins by 20 basis points. Hieronimus said he expected the impact would ease in the second half of the year.

Like-for-like sales rose 6.3 per cent in the second quarter on an adjusted basis for a total of €11.6bn, ahead of forecasts. The adjustment accounts for timing impacts related to an IT overhaul.

L’Oréal’s performance was boosted by double-digit sales growth in its professional products and dermatological beauty divisions. Sales at the group’s luxury division, its largest, grew 4.7 per cent on an adjusted basis, underpinned by double-digit growth at brands including Aesop and Creed.

Sales also picked up in China. Hieronimus said Chinese consumers were gaining confidence because of the improved performance of its domestic stock market over the past year, as well as the country’s technological prowess.

“Whether it is AI or robots, you really feel that the future is on display. I feel that at least part of the population feels very positive and excited about that,” he said.

The sales impact for L’Oréal from the war in the Middle East totalled €30mn in the second quarter due to lower spending in travel-retail destinations and the region’s high-end shopping malls.

>>> Garmin beats by $0.51, beats on revs; raises FY26 EPS above consensus, revs

Garmin beats by $0.51, beats on revs; raises FY26 EPS above consensus, revs above consensus (253.65)
  • Reports Q2 (Jun) earnings of $2.81 per share, excluding non-recurring items, $0.51 better than the FactSet Consensus of $2.30; revenues rose 11.4% year/year to $2.02 bln vs the $1.93 bln FactSet Consensus.
  • Co issues upside guidance for FY26, sees EPS of approximately $10.00, excluding non-recurring items, vs. $9.67 FactSet Consensus and vs. $9.35 prior guidance; sees FY26 revs of approximately $8.05 bln vs. $8.01 bln FactSet Consensus and vs. $7.9 bln prior guidance.

TechCrunch : Sam Altman is ready to decelerate

Sam Altman is ready to decelerate

OpenAI CEO Sam Altman says that it may be time to “pace” AI development so the world will be ready for it.

“We may have to pace the rate of AI development to give ourselves enough time for society to harden around some of these new capability levels,” he told Patrick O’Shaughnessy, the host of the Invest Like the Best podcast, while also “trying to figure out how we do that in a way that does not feel like regulatory capture for anyone and also does not feel like collusion among the frontier labs.”

Both OpenAI and Anthropic came out in support of a petition circulated by employees at the frontier labs, calling on the US government to “support an international effort to develop the technical and governance tools needed to deliberately pace the frontier of automated AI development.”

Altman has avoided signing on to past campaigns to slow AI progress, calling a 2023 open letter that proposed a similar slowdown “missing most technical nuance about where we need the pause.”

Apparently, he’s softened on the idea, thanks in part to the incident where one of OpenAI’s advanced models managed to break out of a secure computing environment and hack into Hugging Face, an online model database, using several zero-day exploits.

On the podcast, the OpenAI co-founder called it an “extremely sci-fi cyber incident…[t]his is the first security incident that I have felt very viscerally.”

OpenAI researchers have paused training on that model while they work out how to keep their sandbox secure. But Altman said that as models become more powerful, the need to “pace” their development could become key to safe deployment.

While model safety and alignment has always been a concern in the AI world, the arrival of Anthropic’s highly capable Mythos model earlier this year has turned hypotheticals into real-world problems.

However, the industry has a trust problem, and challenging economics that give major players an incentive to play up the dangers of their systems in ways that experts disagree about — for example, whether or not Anthropic’s Fable model should have been briefly banned from use or not. Similarly, when Kimi K3, a large, open-weight model built in China, was released, OpenAI head of strategic futures Dean W. Ball said that it threatened the economics of frontier labs, making it difficult to separate their safety concerns from their financial interest.

“I think a lot of the talk about safety concerns is well-founded, and then a lot of it is about people that just really, even if it’s slightly subconscious, want to concentrate power,” Altman mused, in what reads as a dig at his rival, Anthropic CEO Dario Amodei, who signed the petition. “I am terrified of a world where the very real fears of AI are used as a way to say, ‘Only this small group of people can have it because it’s too dangerous, and only they understand it, but don’t worry, like, they’re gonna make the right decisions for all of us.’ I don’t believe in that.”

Still, OpenAI has pushed back against efforts to develop government rules for AI models, instead preferring an industry-led approach where AI labs would create ostensibly independent organizations that would evaluate the security of models and the safety approach of their makers.

The challenge for both that approach to regulation and any efforts to slow AI development will be getting the various players in the industry on the same page, whether they are rival frontier labs in the U.S. or competitors in China.

This story was updated to include OpenAI and Anthropic’s support of the “Pacing the Frontier” petition.

The Information : Trump Administration Bans New Humanoid Robots From China The n

Trump Administration Bans New Humanoid Robots From China
The new restrictions on foreign-made robots reflect Washington’s growing tech rivalry with Beijing.

The U.S. government announced a ban on the imports of new foreign-made humanoid robots, which are mostly from China, citing national security risks.

The move reflects Washington’s growing concerns about China’s critical role in the global robotics industry and its supply chain. China currently accounts for the vast majority of the world’s humanoid production.

The Federal Communications Commission on Tuesday said it has added foreign humanoids and quadrupeds to its list of equipment and services that pose a risk to U.S. national security, preventing such robots from receiving FCC authorization to be imported, marketed or sold in the U.S.

“Advanced robotic devices collect data that could be leveraged by malign actors to surveil Americans, enhance the capabilities of foreign intelligence services, or to remotely commandeer the robots,” the White House said in its National Security Determination statement.

The ban applies to new models of robots, the FCC said. American consumers can continue to use robots they have already purchased, and retailers can continue to import and sell existing models of robots that previously obtained FCC authorization.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • BAND -21.5%, PSN -20.2%, FVRR -17.7%, CSGP -15.4%, LMND -12.8%, VRT -12.5%, OI -12.1%, CAR -11.3%, CLVT -10.9%, ORN -10.6%, SWKS -9.1% (also new $2 bln repurchase program, suspends dividend program), HUM -8.5%, LII -8.1%, VFC -7%, KLAC -6.6%, QRVO -6.2%, SW -5.5%, AXGN -4.7%, VRSK -4.4%, PSFE -4.3%, WERN -3.4%, PG -3.4%, GIB -3.1%, SITE -2.9%, SOFI -2.5%, NXPI -2.4%, ACHC -2.4%, FCF -2.3% (also increases share repurchase authorization by $75 mln), ARCB -2.3%, SWK -2.3%, HBM -2.2%, CHEF -2.2%, FLEX -2.2%, AXS -2.1%, SLGN -2.1%, RNST -2%, V -2%, UMC -1.9%, REYN -1.9%, LSTR -1.8% (also increases dividend), MAS -1.7%, WM -1.6%, CTSH -1.6%, OSW -1.5%, SKHY -1.4%, CBRE -1.4%, EVR -1.3%, UNM -1.1%, PPG -0.9%
Other news:
  • FEIM -6.7% (prices 1.74M-share public offering at $57.50/share)
  • NPCE -5.4% (receives FDA guidance on PMA supplement)
  • COUR -2.6% (to invest $100 mln in AI learning startup LearnVector)
  • AVTX -1.3% (stock offering by selling shareholders)
Analyst comments:
  • CAT -3.5% (downgraded to Neutral from Outperform at Robert Baird)
  • DEO -2.5% (downgraded to Hold from Buy at Deutsche Bank)
  • GEMI -1.8% (downgraded to Sell from Neutral at Goldman)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • RCKY +16.6%, GEHC +13%, NEO +12.1%, MANH +11.3%, TER +8.9%, BE +8.6%, GNRC +7.6%, GRMN +6.9%, STX +6.4%, MCHB +6.4%, FTRE +6.3%, F +6.1%, LAD +5.5%, AVTR +5.5%, LFUS +5.3%, RBBN +4.9%, OPCH +4.8%, SCL +4.1%, CVE +3.9%, AKR +3.8%, JCI +3.8%, IEX +3.8%, QURE +3.7%, AER +3.5%, HURN +3.4%, BSX +3.3%, BLKB +3%, VMC +3%, SB +2.9%, APAM +2.7%, DB +2.7%, TEVA +2.7%, EDU +2.4%, CAKE +2.3%, WDS +2.2%, RIO +2.1%, PB +2%, GTX +2%, DMC +1.7%, IONS +1.7%, DBD +1.7%, PBR +1.6%, EXLS +1.5%, NOV +1.4%, UBS +1.4%, NBR +1.2%, SMG +1.2%, LXP +1.1%, OGE +1%
Other news:
  • VRRM +24.6% (reaches framework agreement with Avis Budget on new contract)
  • BORR +4.4% (completes $287 mln acquisition of five jack-up rigs from Fontis Finance)
  • TRST +3.8% (HoldCo Asset Management discloses 5.1% active stake)
  • CDZI +3.2% (signs GMP construction contracts)
  • SKYT +2.5% (IONQ gets final regulatory clearance for SKYT acquisition)
  • HLLY +1.8% (sells several brands)
  • AVEX +1.8% (wins $88.1 mln in production orders)
  • IONQ +1.5% (IONQ gets final regulatory clearance for SKYT acquisition)
Analyst comments:
  • CAKE +3.1% (upgraded to Equal Weight from Underweight at Morgan Stanley)
  • TXN +1.7% (upgraded to Buy from Neutral at Arete)
  • KMX +1.3% (upgraded to Neutral from Underweight at JPMorgan)

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • VRRM +21.3%, RCKY +16.3%, NEO +11.9%, MANH +10.1%, BE +9.2%, TER +8.2%, MCHB +6.4%, STX +5.7%, F +5.2%, BORR +5.1%, LAD +4.8%, AVTR +4.7%, CVE +4.4%, GNRC +4.3%, SKYT +4.1%, TRST +3.8%, AKR +3.8%, SB +3.7%, EDU +3.6%, DB +3.6%, HURN +3.4%, CSTM +3.4%, FORM +3.2%, IONQ +3%, MIR +3%, APAM +2.7%, NBR +2.6%, UBS +2.5%, RBBN +2.4%, QUAD +2.3%, RIO +2.3%, WDS +2.3%, DMC +2%, HLLY +1.8%, ENPH +1.8%, SATL +1.6%, INCY +1.6%, COUR +1.5%, EXR +1.5%, SLDE +1.4%, CDZI +1.3%, CAKE +1.1%, PBR +1.1%, LXP +1.1%, NOV +1%
  • Gapping down:
    • CSGP -17.4%, FVRR -16.7%, CAR -13.4%, OI -13.1%, VRT -12.6%, NPCE -10.4%, FEIM -10.3%, HUM -10%, SWKS -9.8%, KLAC -7.9%, LMND -7.7%, VFC -4.7%, ORN -4.3%, CLVT -3.7%, WERN -3.4%, AXS -3.3%, ACHC -3.2%, NEXA -2.9%, IART -2.8%, PSFE -2.5%, FCF -2.3%, PPG -2.2%, SLGN -2.1%, QRVO -1.9%, CR -1.9%, LSTR -1.8%, STAG -1.8%, BIIB -1.8%, ARCB -1.7%, VSTM -1.6%, MEOH -1.6%, CZR -1.5%, SBCF -1.3%, WM -1.2%, NXPI -1.1%, UNH -0.9%

WSJ : Could the Most Radical Plane Design Since the Concorde Take On Boeing? Jet

Could the Most Radical Plane Design Since the Concorde Take On Boeing?
JetZero’s blended-wing aircraft just got a major boost from Washington: a $3 billion preliminary deal to help start production

  • JetZero reached a preliminary deal with the U.S. Export-Import Bank for up to $3 billion in loans and guarantees to build its first factory.
  • JetZero claims its blended-wing Z4 aircraft will be about 30% more fuel efficient than later-generation jets like the 787.
  • Critics of the design cite potential passenger motion sickness, evacuation challenges and compatibility issues with airport jetways.

The U.S. government is swinging behind a fledgling startup’s moonshot bid to dislodge Boeing BA 4.76%increase; up pointing triangle as America’s only major maker of commercial airliners.

The aircraft that JetZero wants to do it with is no less radical than its ambition. It looks more like a manta ray than the tube-with-wings blueprint that has been the default for over 70 years. If JetZero can cross the line, the blended-wing aircraft would mark the biggest shift in passenger-jetliner design since the supersonic Concorde.

Forget one or two aisles, this one has four and is set to fly about 10,000 feet higher than today’s airliners. Initial designs replace passenger windows with digital screens and, to compensate, a skylight in the ceiling to flood the cabin with natural light. Each seat, the company says, has its own overhead luggage compartment. And each toilet has a dedicated waiting space.

JetZero, based in Long Beach, Calif., last week reached an early deal with the U.S. Export-Import Bank as part of its Make More in America Initiative for as much as $3 billion in loans and guarantees that the company needs to build its first factory. The preliminary agreement is helping JetZero’s chief executive answer a question that has been plaguing him for years: Is this thing even real?

“The question’s a good one…is it real?” Chief Executive Tom O’Leary said in an interview. He is targeting a first prototype flight of the aircraft, known as the Z4, by the end of next year. “How real it is is effectively, ‘Where’s all the money coming from?’ ”

The company’s ambition comes after a bruising few decades for American planemaking. Once dominated by three industrial titans that produced about 90% of the world’s airliners, Boeing now fights solo. Its European rival, Airbus, controls more than half the market.

There is also a new competitor in China, Comac, which is steadily getting aircraft into the hands of regional carriers and has set its sights on its own new blended-wing design.

O’Leary was speaking from JetZero’s corporate chalet at the U.K.’s Farnborough International Air Show last week, where startups showed off flying taxis, hydrogen-powered jet engines and electric planes for a future that each claimed was just around the corner.

The trick up JetZero’s sleeve is that its radical, new aircraft isn’t actually that new at all. Almost all of the Z4’s components—from controls to the use of previous-generation engines on its demonstrator—are taken from existing planes, meaning they have already obtained sign-off from the Federal Aviation Administration. The main new thing about his aircraft is the shape in which JetZero is piecing those components together, O’Leary said.

Even that shape, the blended-wing concept, stretches back to the early days of aviation. The National Aeronautics and Space Administration began updating research into it about 30 years ago, spending more than $1 billion and test-flying prototypes. Working with Boeing, NASA sought to learn how much fuel efficiency researchers could extract by designing a profoundly more aerodynamic aircraft that maximized lift and sharply reduced weight and drag.

The answer, according to JetZero, is about 30%, compared with later-generation jets like the 787, O’Leary said.

That said, there have long been skeptics of the blended-wing design and reasons an actual commercial plane has never come to fruition. Critics point out that passengers in the wings could be exposed to higher levels of uncomfortable gravitational force when the plane turns.

The lack of physical windows might exacerbate feelings of motion sickness. A quad-aisle layout changes how an evacuation would play out. Airport jetways weren’t designed to handle such planes.

JetZero says it has answers for those concerns. It has also managed to convert a growing lineup of believers, including probably its most important, the U.S. government. The Ex-Im Bank chairman said he wants the loan deal fast-tracked. The company separately has $235 million from the U.S. Air Force to build its prototype, and is backed by Northrop Grumman and RTX, which is providing Pratt & Whitney engines for the first demonstrator.

JetZero has also lured the backing of about 20 airlines including Delta Air Lines, Alaska and United, which has a conditional order for 200 of the Z4.

In closed-door sessions each quarter, JetZero’s team preaches to specialists from those airlines about specific elements of the aircraft, such as cabin layout, flight controls and cargo doors. At the end of each two-day briefing, JetZero’s team steps away and the airline representatives talk privately about what they hate about the aircraft.

“When this was suggested to me, I was quite shocked,” O’Leary said. “We’re going to take all of our customers, tell them some of the most intimate challenges of our business, put them in a room, leave the room, and let them discuss amongst themselves?”

But the sessions have become critical, he said, helping JetZero to tweak the aircraft so that it not only flies, but meshes with decades-old airport infrastructure and operating norms dating back to the first jetliners of the 1950s.

In June, JetZero broke ground on a manufacturing facility in Greensboro, N.C., that is slated to produce the first Z4s by 2030 for use in testing and certification. The full-scale prototype is set to fly toward the end of 2027, with entry into service possible from the early 2030s. But O’Leary is secretive about exactly when passengers might see the aircraft at their gates, largely because that will depend on the FAA’s safety approvals.

The proposed airplane would seat about 250 passengers and fly about 5,000 nautical miles, fitting between the biggest narrowbodies and the smallest wide-bodies that Boeing and Airbus currently sell. That segment has largely gone unserved after Boeing halted plans to replace its popular 757 and 767 at the pinnacle of the 737 MAX crisis, which followed a pair of crashes in 2018 and 2019.

The gap in the market is a consequence of designing airplanes around a cylindrical cabin and having to choose between a bigger- or a smaller-diameter tube, O’Leary said. He compares JetZero’s proposition to selling a medium-size shirt in a shop that stocks only smalls and larges.

Blended-wing fuselages aren’t necessarily an obvious solution. Airbus had promoted a similar-style jet as one of the futuristic concepts it was studying alongside a hydrogen-powered aircraft. The plane maker ultimately decided the jet would need to be too big to take advantage of the aerodynamic efficiencies, according to a person familiar with its decision to shelve the plans.

Natilus, another California-based startup, is working on a similar, but smaller blended-wing aircraft that would compete more directly with the narrowbodies that dominate Airbus and Boeing’s order backlogs.

“If you look at the industry as a whole, I think everybody’s ready for something new,” said Natilus CEO Aleksey Matyushev from his company’s stall on the other side of the air show.

FT : Hermès sales rise as luxury group weathers slowdown in Middle East Demand i

Hermès sales rise as luxury group weathers slowdown in Middle East
Demand in Europe, US and Japan helps offset impact of US-Iran war

Demand for high-end handbags and silk scarves helped sales at luxury group Hermès rise in the second quarter, as demand in Europe, the US and Japan helped offset a slowdown in the Middle East.

The Paris-listed leather goods specialist reported sales of €4.1bn in the second quarter at constant exchange rates, up 7 per cent compared with the previous year and in line with analysts’ forecasts.

Hermès’ second-quarter performance marked a modest acceleration for the maker of Birkin bags, after the sharp impact from the fall in tourist shopping in the Gulf in March.

Hermès is usually viewed as one of the most resilient names in luxury thanks to demand that outstrips supply for its hit bags and a wealthy client base.

It caps a mixed quarter for luxury: Richemont posted a blockbuster beat on the strength of its jewellery brands, including Cartier, while LVMH and Kering showed improved trends from a lower base.

“In the first half of 2026, Hermès delivered a solid performance . . . we look to the second semester with confidence,” said executive chair Axel Dumas.

Shares at Hermès were down 3.5 per cent on Wednesday morning, while Kering jumped as much as 11 per cent after it returned to growth for the first time in three years. LVMH shares rose 2.4 per cent and Richemont was flat.

Recurring operating income at Hermès for the first half of 2026 was €3.4bn compared with €3.3bn in the first half of 2025, at a margin of 41 per cent.

Dumas said the group did not see a “tremendous improvement” in China, a key market for luxury that is weathering a multiyear slowdown. However, he did announce that Hermès would present its first haute couture collection in 2027, joining houses such as Chanel and Dior in this rarefied field.

“Hermès delivered a solid second-quarter sales performance with group revenue growth accelerating [though] the quality of growth was mixed,” wrote analysts at Deutsche Bank, noting the company had generated “stronger than expected profitability”.

All markets except the Middle East rose in the three months to the end of June, where trading has been affected by the conflict between the US and Iran. Sales in the Middle East region fell 2.4 per cent in the period, an improvement on the first quarter when sales fell 5.9 per cent.

Eric du Halgouët, executive vice-president for finance, said the conflict had knocked 1.5 percentage points off group sales growth in the first half.

Sales in Japan and the Americas both increased by double digits, as did sales at Hermès’ biggest division, which sells leather goods, rising 10.2 per cent in the quarter.

However, revenues from Hermès-branded perfume and beauty products fell 9.5 per cent in the second quarter, raising questions about its appeal among aspirational middle-class shoppers.