- Kering‘s overall comparable revenue decreased by 14% year-over-year, missing the expected estimate of an 11.9% decline.
- Gucci’s revenue on a comparable basis dropped by 25%, below the estimate of a 23.6% decrease.
- Yves Saint Laurent saw a 9% decline in comparable revenue, slightly worse than the 8.03% anticipated drop.
- Bottega Veneta experienced a positive revenue growth of 4% on a comparable basis, although it did not meet the estimated growth of 7.71%.
- The Other Houses category revenue fell by 11% on a comparable basis, missing the projected decline of 7.18%.
- Eyewear & corporate revenue increased by 3% on a comparable basis, falling short of the expected 5.84% growth.
- Total revenue amounted to 3.88 billion euros, marking a 14% year-over-year decline, compared to the estimate of 4.09 billion euros.
- Gucci’s revenue was 1.57 billion euros, a 24% drop year-over-year, versus the estimate of 1.62 billion euros.
- Yves Saint Laurent’s revenue reached 679 million euros, declining 8.2% year-over-year, against an estimated 690.7 million euros.
- Bottega Veneta’s revenue was 405 million euros, a 4.4% year-over-year increase, below the expected 423.2 million euros.
- Other Houses revenue was 733 million euros, down 11% year-over-year, compared to the estimate of 775.8 million euros.
- Eyewear & corporate revenue was 558 million euros, up 4.1% year-over-year, short of the 574.4 million euros estimate.
- The CEO acknowledged a challenging start to the year and emphasized increased vigilance to navigate macroeconomic challenges.
- The CEO expressed confidence that the company will emerge stronger from the current situation.
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Kering on Smartkarma
Analyst coverage of Kering on Smartkarma reveals insights from Business Breakdowns, with their report titled “Kering: It’s Gucci – [Business Breakdowns, EP.199]”. The analysis highlights Kering as a luxury house boasting brands like YSL and Gucci. Despite recent challenges, Kering shows potential for growth, particularly in beauty products. The appointment of a new designer for Gucci signals a shift towards a more discreet luxury approach. Gucci, a key brand under Kering, contributes significantly to both revenues and profits, emphasizing its strong market presence. Originating from varied regional businesses, Kering‘s evolution under the leadership of Francois Henry Pinault underscores its luxury focus.
Overall, the sentiment towards Kering in the report leans towards the bullish side, indicating optimism about the company’s future prospects. The comparison drawn between Kering and LVMH, along with the strategic positioning of brands like Gucci, YSL, Bottega Veneta, and Balenciaga, showcases Kering‘s competitive edge in the luxury segment. This analyst coverage provides valuable insights for investors looking to understand Kering‘s market positioning and growth opportunities. The information sourced from publicly available data offers a comprehensive view of Kering‘s business landscape for general informational purposes.
A look at Kering Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| 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
Based on the Smartkarma Smart Scores, Kering SA, a renowned luxury and lifestyle goods company, showcases solid performance in certain areas. With a top-notch score of 5 in the Dividend category, Kering demonstrates a strong commitment to rewarding its investors through consistent payouts. This aspect could be appealing to long-term investors seeking stable income streams from their investments.
However, Kering‘s overall outlook is somewhat varied across different factors. While the company excels in Dividend, it lags in areas such as Growth and Momentum, with scores of 2 in each. This suggests that Kering might not be a top performer in terms of future growth potential and stock price momentum. Investors may need to consider these factors along with the information provided to assess the long-term prospects of investing in Kering.
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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