While maintaining its 'hold' recommendation on Kering, Stifel has lowered its price target from 430 to 420 euros, in the wake of EBIT projections reduced by 2% for 2023 and 3% for 2024, on slightly lower growth and margin assumptions.
The broker points to weakening demand in the luxury goods sector, which he expects to make it more difficult for Gucci to simultaneously deliver a rapid turnaround and brand elevation in 2024.
Stifel sees YSL, BV and Balenciaga in a process of brand elevation that should ultimately strengthen their value, but possibly impact volumes in 2024. The share looks cheap, but lacks catalysts for revaluation, in his opinion.
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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 
