全球奢侈品行业大型调研系列：在比斯特购物村寻觅迪奥、博柏利和普拉达的折扣商品

Global Luxury Goods Mega-transect Series: Bargain hunting atBicester Village for Dior, Burberry and Prada In a mega-transect first, we visit Bicester Village, the luxury outlet store outside of Londonowned by Value Retail (private). Previously in the Series: Hong Kong, Beijing, Shanghai andChengdu, during the Golden Week holiday (3 Oct 2025) and prior to CNY (25 Jan 2025). Luca Solca+41 582 723 126luca.solca@bernsteinsg.com Maria Meita+44 20 7170 0540maria.meita@bernsteinsg.com Undeterred by the quintessentially British weather, customers queued up in thepouring rain to buy early Christmas gifts at Bicester Villagethis Saturday, November 22nd. The Village prices are discounted up to -50% of the original retail price, often with>20% more added on top for Black Friday. While the majority of customers were Britishaspirational customers, ~1/3 were young Asian consumers. Pre-Brexit, Bicester Villagewas famous for being the second-most visited location by Chinese tourists in the UK after Eric Chen, CFA+852 2123 2628eric.chen@bernsteinsg.com Yi-Peng Khoo, CFA+44 20 7676 6822yi-peng.khoo@bernsteinsg.com Diorwas the most wanted brand with a queue outside that wrapped around the store, as itenjoys one of the highest square footages in the Village, alongside the likes of Ralph Laurenand Prada. This is not surprising, as it is the only brand among the top three most desirablein the industry to have an outlet presence (Louis Vuitton and Chanel don’t).Burberrywasthe second most-visited brand, suggesting that in the mind of (mostly British) aspirational Specialist Sales Alix Turner+44 20 7762 4044alix.turner@bernsteinsg.com Among Kering’s brands,Saint Laurentstood tall, despite having a smaller store than Gucci,as it offered a true off-price experience: a limited stock of heavily discounted products fromrunway collections of more than two years ago. This bodes well for the CEO’s plan to reducethe dependence on its biggest brand. Investor appetite forGuccihas not translated toaspirational customers yet… The weather was very much in favor ofMonclerandStone Among the other Smid-Cap names, it is notable to seeSalvatore Ferragamolead theranking, despite the lack of the Hug Bag on sale. Customer age in store was higher thanVillage average, given the main items sold were the Vara pump and men’s formal footwear.Expectedly,Loro Piana,Brunello CucinelliandZegnahad limited customer traction giventhe very high price-points even at a discount. As the main beneficiaries of the K-shaped Note: The long queues were deliberate, as luxury outlets had strict limits of the numberof customers allowed in store in order for them to enjoy a more high-end shoppingexperience. This is compared to the mayhem one saw in high-street outlets such as Coachor Max Mara, that did not restrict the number of customers inside. Even the length of queueshad to be limited to the relative size of the store given fire regulations, so brands likeSaint EXHIBIT 3:Burberry was facing asimilar predicament with the queue EXHIBIT 2:The queue for Diorwrapped around the store, despite EXHIBIT 4:Discounts at Saint Laurentwere unparalleled, given the verylimited stock from collections older EXHIBIT 6:The weather was verymuch working to Moncler’sadvantage, with outerwear brands EXHIBIT 7:Stone Island continuesto be popular with young Asianconsumers, with the age of their EXHIBIT 5:While Birkenstock has asmall store in the Village, we weresuprised by the interest in the brand INVESTMENT IMPLICATIONS In the absence of clarity on luxury goods demand, investors seem to have taken the approach of favoring catalyst-richidiosyncratic self-help stories (Kering, Burberry, Salvatore Ferragamo) over the relatively predictable quality names (Hermès,Richemont, LVMH). This leaves us favoring idiosyncratic self-help stories that are less appreciated. In this group, we think LVMHis most credible (see LVMH: Best Idea Fourth Quarter 2025 - The fears are priced in, the turnaround is not. Outperform;Blackbook: LVMH: Trunk Show), followed byRichemontandZegna(Zegna: Not your father's suit and tie - Initiating with an DISCLOSURE APPENDIX I. REQUIRED DISCLOSURES References to "Bernstein" or the “Firm” in these disclosures relate to the following entities: Bernstein Institutional Services LLC(April 1, 2024 onwards), Sanford C. Bernstein & Co., LLC (pre April 1, 2024), Bernstein Autonomous LLP, BSG France S.A. (April 1,2024 onwards), Sanford C. Bernstein (Hong Kong) Limited盛博香港有限公司,Sanford C. Bernstein (Canada) Limited, SanfordC. Bernstein (India) Private Limited (SEBI registration no. INH000006378), Sanford C. Bernstein (Singapore) Private Limited andSanford C. Bernstein Japan KK(サンフォード・C・バーンスタイン株式会社). On April 1, 2024, Société Générale (SG) and AllianceBernstein, L.P. (AB) completed a transaction that created a new joint venturein which their respective cash equities and research businesses operate in a new business combination. Although their respectiveownership percentages