Kering has announced the arrival of Sabato De Sarno as Creative Director of Gucci. He will begin his new responsibilities as soon as he is released from the obligations associated with his current duties at Valentino.
Oddo believes that the Valentino/garment connotation conveyed by S. De Sarno corresponds well to the repositioning of Gucci desired by Kering management (elevation of the brand).
' We remain rather cautious: the outlook for Gucci's turnaround still seems uncertain to us We do not believe that this appointment fundamentally changes the perception of Kering's share price in the short term, and above all we think that the task of turning around the brand's commercial fortunes could remain a long one' says Oddo.
' We also note that the brand's position will remain precarious in the short term, with performance expected to continue to lag over the next few quarters before the new style is revealed' adds the research firm.
Oddo confirms its neutral opinion on the stock, with a price target of E522.
' Although Kering's share price is at a substantial discount of nearly 35% to the sector benchmark LVMH on a PE-VE/EBIT basis, the stock has risen strongly by nearly 17% YTD, in line with the rest of the sector ' stresses the analyst.
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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 
