- Kering‘s comparable revenue declined by 5%, better than the estimated drop of 8.65%.
- Gucci’s revenue decreased by 14% on a comparable basis, surpassing the estimate of a 15.1% decline.
- Yves Saint Laurent saw a 4% drop in revenue, performing better than the expected 6.83% decrease.
- Bottega Veneta’s revenue rose by 3% on a comparable basis, exceeding the 1.05% growth estimate.
- Other Houses segment experienced a 1% revenue increase, improving significantly over the expected 6.34% decline.
- Eyewear & corporate revenue grew by 6%, outpacing the set growth expectation of 2.5%.
- Total revenue for Kering was EUR 3.42 billion, a 9.8% year-on-year decrease, yet it beat the estimated EUR 3.31 billion.
- Gucci’s revenue was EUR 1.34 billion, an 18% decline year-on-year, slightly better than the forecasted EUR 1.33 billion.
- Yves Saint Laurent generated EUR 620 million in revenue, a 7.5% year-on-year decline, exceeding the expected EUR 598.8 million.
- Bottega Veneta’s revenue was EUR 393 million, a minor 1% decrease year-on-year, surpassing the EUR 383.3 million estimate.
- Other Houses recorded EUR 652 million in revenue, showing a 5% year-on-year decrease but beating the estimate of EUR 618.6 million.
- Eyewear & corporate revenue amounted to EUR 448 million, marking a 1.8% year-on-year increase, slightly above the expected EUR 447.7 million.
Kering on Smartkarma
Independent analysts on Smartkarma are closely tracking Kering, with insightful research reports shedding light on the company’s recent strategic moves. Jesus Rodriguez Aguilar‘s bullish analysis titled “Kering – Beauty Sale to L’Oréal: Deleveraging Catalyst in a Strategic Reset” highlights Kering‘s €4 billion beauty sale to L’Oréal as a pivotal step by CEO Luca de Meo in shifting the company’s focus from expansion to debt reduction and discipline restoration. This move not only cuts Kering‘s net debt to around 2 times EBITDA but also provides breathing room for Gucci’s creative revival, potentially offering a moderate upside in share price if operational execution remains strong.
Additionally, Baptista Research‘s optimistic take in their report “Kering SA – Integration of A New Creative Vision Is Driving Our Optimism!” emphasizes Kering S.A.’s commitment to a long-term strategy centered on brand health and sustainable growth. Despite a financial performance dip in 2024 due to transformation efforts and market challenges, Kering is aligning its brand portfolio, including Gucci and Kering Eyewear, with a renewed creative vision to enhance product offerings. Baptista Research‘s evaluation factors in various influences on Kering‘s stock price in the near term, including conducting an independent valuation using Discounted Cash Flow methodology to assess the company’s potential value.
A look at Kering Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
Analysts evaluating Kering‘s long-term potential have indicated a promising outlook, with a strong momentum score of 5. Momentum reflects the company’s ability to maintain positive performance trends over time, hinting at continued growth and market appeal. Additionally, Kering scores well in value, dividend, and resilience, with scores of 3 across these categories. This suggests that the company is well-positioned to withstand market fluctuations and provide potential returns to investors.
Kering, a renowned luxury and sport & lifestyle goods company, boasts an impressive portfolio of brands including Gucci, Bottega Veneta, and Puma. With a global presence and headquarters in Paris, France, Kering‘s solid performance scores across various key factors indicate a stable and potentially lucrative investment opportunity for those eyeing the long-term prospects in the luxury goods sector.
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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