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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 SA. We currently have 1 research reports from 4 professional analysts.
Since November, the JOG share price has moderated from a high of 250p to current levels of 149.5p. This is despite JOG having now made significant progress towards FID on its c.70mmboe Buchan project, with FID upcoming later this year. In our view this share price move is unjustified, with current levels further enhancing the value on offer, and making an attractive opportunity for investors.
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Zeus Capital
i3 Energy has announced that it has refinanced its Trafigura straight-line amortising facility with a traditional RBL facility provided by a Canadian chartered bank. We believe that i3 Energy's shareholders stand to benefit considerably from the restructured balance sheet because it is significantly better adapted to the company's needs, in our opinion. We believe the new RBL facility will free funds for growth and provide better long-term balance sheet stability, while significantly reducing in
Companies: i3 Energy Plc
WHIreland
i3 has announced a refinancing of its C$75m Trafigura debt facility, increasing liquidity for the company to pursue further growth initiatives. i3 has also announced its end 2023 reserves update, showing significant replacement of production during the year.
Diversified Energy, Touchstone Exploration, Savannah Energy, Chariot, Plexus Holdings, Energean, Gulf Keystone Petroleum, PetroTal Corp, Ithaca Energy, Pantheon Resources, Serinus Energy, Angus Energy, Aker BP, Equinor, BlueNord ASA, Invictus Energy Source: FactSet, weekly change 18/03/24-22/03/24 Oil edged lower to settle below $81 a barrel after a stronger dollar curbed investor appetite for commodities, offsetting signs of a tighter global crude market. Refined product supplies are looking m
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Cavendish
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Canaccord Genuity
Results demonstrate Bretana cash flows that allow growth CAPEX and dividends. PetroTal has produced a solid set of 2023 results. These show the cash flow generating capability of the company’s Bretana field in Peru, which enables PetroTal to both expend growth CAPEX while also making material returns to shareholders.
Companies: PetroTal Corp.
Companies: FOG PEB KBT EMR TIME GETB JNEO
The company's business structure is evolving and diversifying into several compelling and complementary businesses. The opportunistic, potential sale of its producing shallow assets would represent a significant change and the company's openness to realise value from that sale speaks to the company's prioritisation of shareholder interests and shareholder value creation. The current year will be significant for many of the company's growth businesses as they establish their first significant com
Companies: Caspian Sunrise PLC
• YE23 2P reserves were estimated at 11.8 mmboe, including 0.7 mmboe for Canada and 4.6 mmboe non-core, leaving 6.5 mmboe for the company’s core Colombian assets. This compares with 2.1 mmbbl at YE23 plus 3.9 mmbbl for Carrizales Norte reported in September for a total of 6 mmbbl. Adding back 0.6 mmbbl (net) produced at Tapir in 2023 suggests that Arrow has added 1.1 mmbbl at its core Colombian assets since the latest reserve reports (September 2023 for Carrizales Norte and YE23 for the other a
Companies: Arrow Exploration Corp.
Auctus Advisors
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Tennyson Securities
Central Asia Metals (CAML LN) reported full year earnings with net revenue of US$197m down 12% YoY (-1% against VSA estimate) owing to lower commodity prices and modestly lower output albeit comfortably within guidance. EBITDA of US$97m was down 27% YoY marginally below our estimate as the lower top line combined with inflationary pressure. However, group COGS ex-D&A increased 8% YoY, far lower than in-country inflation. A flagged increase in taxation in Kazakhstan meant that net income was US$3
Companies: Central Asia Metals Plc
VSA Capital
• FY23 production, YE23 net cash and YE23 reserves and resources had been reported previously. • The FY24 production guidance of 21.5-24.5 mbbl/d with US$205-235 mm opex and US$135-155 mm capex has been re-iterated. • Current production continues to be high, with average production for the first half of March of ~23,000 bbl/d, including ~7.9 mbbl/d for Jasmine, 7.2 mbbl/d for Nong Yao, 2.9 bbl/d for Manora and 4.9 mbbl/d for Wassana. Production at Wassana is particularly high. • Valeura will als
Companies: Valeura Energy Inc.
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