While reiterating its 'hold' position on Kering, Stifel has lowered its price target from 420 to 390 euros, in the wake of a 9% reduction in its estimated EPS for 2024-26, following last week's first-quarter sales warning.
Bottega Veneta's brand momentum is a bright spot in Kering's portfolio, but insufficient to offset Gucci's current challenges in Asia', says the broker, who prefers to remain on the sidelines for the time being.
According to him, earnings revisions still need to stabilize for the stock to find a floor, and 'the market is still waiting for evidence of Gucci's ability to recover certain market shares ceded to key rivals since 2020'.
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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 
