Kering Takes a Breather on the Stock Market After Spectacular Gains
Kering shares opened lower on Tuesday morning, as traders took profits following the previous day's "rally," sparked by the French luxury group's 2025 annual results, which were less disappointing than expected.
By 11:30 a.m., the stock was down 2.9%, making it one of the biggest decliners on the CAC 40 index, after soaring nearly 11% at the close of trading yesterday.
In the numerous analyst notes released throughout the morning, the quality of the earnings report was widely praised, with particular emphasis on the encouraging tone struck by the management team regarding 2026 prospects and a now well-established action plan.
"For his first major presentation, new CEO Luca de Meo delivered a credible and measured message regarding the medium-term outlook, certainly aided by better-than-expected fourth-quarter performance," commented Deutsche Bank analysts this morning.
"We believe these results, as well as the subsequent conference call, have helped to reassure investors ahead of the comprehensive strategic update scheduled for April," the German bank added.
Like many of their peers, Deutsche Bank analysts were particularly pleased with the tangible improvement seen at Gucci, the French group's flagship brand.
Deutsche Bank, which maintains a "hold" rating on the stock, noted, however, that it had lowered its price target from 300 to 295 euros following the results announcement.
More optimistic, analysts at DZ Bank decided to upgrade their recommendation from "sell" to "hold," with a new intrinsic value set at 300 euros.
"The market's main focus will be on the successful implementation of the new management's strategy," explained the Frankfurt-based bank.
"In our view, a return to growth and margin improvement are two important catalysts," it added.
At Oddo, the end of 2025 is described as "fairly encouraging," with the prospect of positive growth for 2026, while also noting that expectations are already high.
Beyond the market's elevated hopes, other professionals highlight the uncertainties still surrounding the recovery of the luxury sector as a whole after a forgettable 2025.
"The new CEO's presentation was truly solid, with a clear diagnosis and a precise action plan," acknowledged Berenberg's team.
"We believe the new strategy should improve performance, but the expectations reflected in the Enterprise Value/Sales ratio—now comparable to that of LVMH—will be hard to meet, given the headwinds affecting aspirational luxury consumers and Chinese clients," noted the German broker, which remains bearish on Kering.
According to Luca Solca, analyst at Bernstein, the real test will come well before the April 16 investor day, with the upcoming Gucci fashion show scheduled for February 27, the very first conceived by designer Demna.
"If the event generates genuine excitement among professional buyers and industry influencers, it could be a trigger for adopting a more favorable view on the stock," the analyst added.
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté.
By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. It captures these beliefs in its signature: Empowering Imagination.
In 2025, Kering had 43,731 employees and restated revenue of EUR 14.7 billion.
At the end of 2025, the Group had a network of 1,719 stores under its own management, located primarily in Western Europe (361), Japan (225), Asia-Pacific (666) and North America (308).
Net sales are distributed geographically as follows: France (5.6%), Western Europe (24.5%), Japan (7.9%), Asia/Pacific (28.6%), North America (24.2%) and other (9.2%).
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