Q1 results a major disappointment with consequences:Q1 to end-April saw sales in line(down 5% at constant FX with same store sales growth down high single digit as we had forecast),but EBIT was a massive miss as margins collapsed(down 910bp).EBIT margin deteriorated to 11% and this was driven by(i)a 150bp gross margin decline as a positive FX impact was more than offset by unfavourable product and geographic mix and(ii)a large 760bp increase in the SG&A ratio as cost containment measures are yet to bear fruit and marketing events were concentrated in the quarter.Although one could argue there were one-offs such as these marketing events,the reality is elements of the mix–underperformance of Greater China,of leather goods and of the Prada brand relative to Miu Miu–could well drag on.