- Kering expects its full-year recurring operating income to be approximately €2.5 billion, below the estimated €2.82 billion.
- Third-quarter comparable revenue decreased by 16%, falling short of the estimated 10.9% decline.
- Gucci’s comparable revenue experienced a sharp decline of 25%, underperforming the forecasted drop of 20.7%.
- Yves Saint Laurent’s comparable revenue fell by 12%, compared to the predicted decrease of 9.94%.
- Bottega Veneta’s comparable revenue increased by 5%, slightly surpassing the estimated growth of 4.1%.
- Other Houses’ comparable revenue decreased by 14%, significantly below the 3.74% estimated decline.
- Eyewear & corporate revenue improved by 7% on a comparable basis, exceeding the expected growth of 6.13%.
- Total revenue for the quarter was €3.79 billion, down 15% year over year, short of the €3.96 billion estimate.
- Gucci generated €1.64 billion in revenue, a 26% year-over-year decrease, missing the estimate of €1.75 billion.
- Yves Saint Laurent reported €670 million in revenue, declining by 13% year-on-year, compared to the expected €688.1 million.
- Bottega Veneta achieved €397 million in revenue, an increase of 4.2% year-on-year, outperforming the forecast of €391.1 million.
- Other Houses posted €686 million in revenue, a 15% year-over-year decline, below the expected €774.5 million.
- Eyewear & corporate revenue surged by 32% year over year, reaching €440 million, surpassing the estimate of €395.4 million.
- Kering noted a larger-than-expected slowdown in the third quarter.
- Major uncertainties are anticipated to affect luxury consumer demand in the upcoming months.
- The company focuses on long-term growth strategies, optimizing its cost base, improving organizational efficiency, and ensuring investment returns.
- The CEO emphasized the priority of achieving sustainable growth while maintaining tight cost controls and selective investment strategies.
- Kering‘s CEO expressed confidence in the company’s strategy.
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Kering on Smartkarma
Analyst coverage on Kering by Dimitris Ioannidis on Smartkarma reveals a bearish sentiment towards the company. In the research report titled “EURO STOXX 50: Kering Out of Fashion with $750M Deletion. DSM-Firmenich In with $1.3B Addition.”, it is highlighted that DSM-Firmenich is projected to replace Kering in the SX5E index due to Kering falling below the exit threshold. Kering is forecasted for direct deletion with a supply of $750M, while DSM-Firmenich is expected to join with a demand of $1.3B as the highest ranked non-constituent. The report also mentions potential replacements for other companies borderline on the exit threshold such as Nokia OYJ and Volkswagen.
A look at Kering Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Kering SA, a global luxury and lifestyle goods company known for brands like Gucci and Puma, has received varying Smart Scores across different factors. With a strong Dividend score of 5, indicating good payout to shareholders, investors can expect stable returns over time. However, the company’s Resilience and Momentum scores are lower at 2, suggesting a somewhat challenging position in terms of navigating market uncertainties and sustaining growth momentum.
Looking ahead, Kering‘s long-term outlook may be influenced by its Value and Growth scores, both at 3. While the company shows potential for growth, there may be areas where it could enhance its value proposition. Investors assessing Kering should consider these Smart Scores as part of a broader analysis of the company’s strategic positioning in the competitive luxury goods market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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