KERING : Oddo BHF remains neutral ahead of half-year results
July 19, 2023 at 01:30 pm IST
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Last night, the Group announced two major management changes. Following this announcement, Oddo BHF confirms its neutral recommendation on the stock, with a target price of E498.
The group's central management will be strengthened with the promotion to deputy CEO of Jean Marc Duplaix (current CFO), who will be in charge of finance and operations, and Francesca Belletini (CEO Saint Laurent), who will be in charge of brand development, says Oddo BHF.
' The management of the Gucci Group's main brand (which alone accounts for almost 70% of its EBIT) is set to change with the departure of Marco Bizzarri, effective September 23. He will be replaced, for a transitional period, by Jean François Palus', stresses the analyst firm.
The analyst believes that the change at the head of Gucci seems to suggest that, since the conviction has recently been acquired that Gucci could not recover as desired in its current structure, Jean François Palus will be expected to improve the brand's operations and prepare for the future.
' We may have to wait for a new appointment to see just how much things will change,' reckons Oddo BHF.
The stock is highly discounted, but Gucci's financial trajectory remains particularly uncertain at this stage: we are not convinced that the current efforts undertaken are sufficient to ensure a recovery, but the amplitude and nature of the changes to come remain difficult to anticipate at this stage.
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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, Alexander 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 2023, Kering had 48,964 employees and restated revenue of EUR 19.6 billion.
At the end of 2023, the Group had a network of 1,771 stores under its own management, located primarily in Western Europe (367), North America (316), Japan (238), and in emerging countries (698).
Net sales are distributed geographically as follows: Western Europe (27.6%), Japan (7.2%), Asia/Pacific (35%), North America (23%) and other (7.2%).
KERING 
