Royal Bank of Canada on Wednesday cut its price target for Kering from 430 to 400 euros, while renewing its 'outperform' rating on the stock.
In a study devoted to the luxury goods sector, the broker said it did not anticipate much improvement in the performance of Gucci, the French luxury group's flagship brand, forecasting a 17% organic decline in activity for the second quarter.
On the margin front, Kering had already warned that it expected a "significant" decline in operating margin (Ebit) for the quarter, with the year-on-year drop expected to be between 40% and 45%, recalls RBC, which attributes this decline to the investments made within the brand to ensure its turnaround.
With regard to YSL, the professional forecast sales of 725 million euros for the second quarter, down 5% on an organic basis, while Bottega Veneta should fare better, with organic growth of 1%.
Kering plans to publish its second-quarter results on July 24.
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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 
