Event in Progress:
Discover the latest content that has just been published on Research Tree
Kering reported Q3 2023 revenue below expectations, showing sales declines across all its brands. The decline was particularly driven by a greater fall-off in the wholesale activities due to the strategic wholesale rationalization. Overall revenue was significantly impacted by weakening local demand from aspirational customers in North America and Europe. Given the current revenue contraction, Kering anticipates a lower EBIT margin for Gucci for this year vs. FY22, and does not expect a margi
Companies: Kering (KER:EPA)Kering SA (KER:PAR)
AlphaValue
Kering’s majority shareholder, Artémis (the holding company of the Pinault family) is acquiring a 52% of stake in the American talent agency Creative Artists Agency (CAA) held by the American investment company TPG. Becoming the major shareholder in one of the world’s largest entertainment companies is an important step for the owner of Kering to enter the entertainment world, given that the fashion and entertainment sectors are becoming increasingly connected.
Kering published H1 23 results which were below consensus and our expectations. All major brands experienced softer-than-expected top-line growth in the second quarter due to the ongoing weakness in North America. Encouraging margin progressions of YSL and Bottega Veneta were offset by the negative leverage at Gucci and Balenciaga. The group expects the leadership reshuffle to accelerate Gucci’s turnaround and confirm the brand’s medium-term targets. In parallel, the group reached an agreemen
Kering has decided to replace Marco Bizzarri, Gucci’s CEO since 2015, with the current managing director, Jean-François Palus, for a transitional period from the end of September. The current CEO of the Yves Saint Laurent brand and the group’s CFO will become Co-CEO of Kering group. This leadership reshuffle confirms the group’s determination rapidly to rekindle Gucci, thereby boosting the market’s confidence in Kering.
Kering Beauté has announced that it has reached an agreement to acquire 100% of Creed with all-cash from BlackRock. Creed is one of most popular high-end niche fragrance brands in the world, which generated more than €250m in sales and has an attractive EBITDA margin. This deal confirmed Kering’s ambition for the fast-growing luxury beauty market, and it is another good step after appointing Estée Lauder’s former executive Raffaella Cornaggia as CEO of Kering Beauté in February.
Kering published a mixed Q1 23 revenue performance, below both consensus and our expectations. The sustained good momentum in Western Europe and the gradual recovery of the Chinese market have been offset by the continued weakness in North America. The group saw a reduction in the number of aspirational customers in the US and relatively softer demand from younger clientele during the quarter. The group said Gucci has achieved good progress, but the group sees the Gucci brand’s elevation “a
Kering published a disappointing year-end performance as the underperformance of Gucci and the Balenciaga marketing scandal significantly weighed on the group’s business. The group has however seen a very encouraging start to the year. The accelerated margin progressions of brands other than Gucci is a promising sign, which could further balance the group’s profit structure during the transition period for Gucci. Kering still trades at a significant discount compared to its industry peers, and
Kering names Sabato De Sarno as the Creative Director of Gucci. Gucci has been lagging behind other major luxury brands in recent years, and the market’s expectations are already integrating a transition period. Gucci is at the crossroads of combining its heritage and fashion newness. The young Italian designer could bring new blood to the brand.
Kering published consensus-beating total group revenue for Q3 22. All segments reported double-digit comparable growth except for Gucci. The ongoing Covid-related restrictions and waning popularity of the brand on the social media in China continued to weigh on the brand. More importantly, the group confirmed that Gucci’s operating margin in H2 22 will not reach its level of H2 21, which will lead to a further downwards revision in earnings.
Kering reported a consensus-beating set of figures for thte H1 22, mainly driven by the promising performance of Saint Laurent and sustained good momentum at Balenciaga and AMQ. However, Gucci reported disappointing profitability, impacted by the dilution from combined FX/hedging and a high marketing spend.
Kering reported Q1 22 figures with all the brands outperforming consensus except for the “most important”, Gucci, which has been significantly affected by the new waves of COVID-related lockdowns and restrictions in China. Like its industry rivals, Kering also said that it’s too early to assess the impact of inflation on luxury demand.
Kering ended the year with both revenue and profitability beating consensus and our expectations. Gucci experienced a strong comeback with revenue jumping by 35% in Q4 21, nearly twice the consensus. The strong desirability of the Aria collection and increased investment communication during the year have borne fruit, thus, reassuring the market. The potential for new price hikes across all brands, elevated product ranges and a strong balance sheet enable the group to enter the FY22 in a bette
Kering has published its Q3 21 revenue, which was 10% ahead of its pre-pandemic level, mainly driven by the impressive growth at Saint Laurent. However, the re-imposed restrictions related to COVID-19 and a lack of newness between collections have weighed on Gucci’s performance, especially in Asia. Management has confirmed that the new Aria collection has started to improve the dynamics at Gucci. Gucci’s Q4 21 performance will be a decisive point to witness the appeal of the brand.
Kering experienced better-than-expected H1 21 results. Overall, the figures were good. The slight miss at Bottega Veneta has been fully offset by the accelerated momentum at Gucci and the increased brand attractiveness of YSL. However, Gucci’s profitability was lagging behind LVMH’s strong deliveries on Monday. The increased investment in commercial events and the brand have weighed on the margin. The accelerated top-line momentum across all brands and higher investments in brands should bear
Kering has released top-line growth of 25.8% for Q1 21, beating consensus expectations. All houses experienced a stronger-than-expected performance, highlighting the strong rebound at Gucci was very appreciable. Mainland China not only continued to lead the growth (at triple-digits), but the group also benefited from the buoyant consumer environment and larger online penetration in North America. The improved Gucci brand beat will enhance our confidence for the near term, but the valuation ga
Research Tree provides access to ongoing research coverage, media content and regulatory news on Kering. We currently have 61 research reports from 3 professional analysts.
Share: