Kering slips as HSBC flags slow pace of turnaround
Kering shares are among the steepest decliners on the CAC 40 this Tuesday, weighed down by a rating downgrade from HSBC analysts, who expressed concern over the slow progress of the luxury group's turnaround strategy. As of 2:30 p.m., the owner of Gucci, Saint Laurent, and Boucheron was trading down approximately 1% at 245.75 euros, while the CAC 40 eased 0.2%.
In a research note, the British bank stated that while the turnaround plan presented by management last week is "coherent," it will require time to yield tangible results in an uncertain economic environment.
HSBC described the roadmap as a "solid" foundation for restoring growth, but warned that the recovery in activity will be gradual and heavily dependent on operational execution.
The revitalization of Gucci, which generates nearly 60% of operating profit, remains the primary strategic challenge in the bank's view. While the brand with the interlocking "G" logo shows resilient performance in the United States, its desirability has been dented in China, a key market for the luxury sector. HSBC warned that rebuilding brand equity will take several years, particularly amid more volatile demand.
Valuation remains stretched with a lack of near-term catalysts
The financial institution added that the stock's valuation remains relatively demanding, trading at a price-to-earnings multiple above the luxury sector average, which limits its short-term appeal.
Finally, HSBC noted that most catalysts likely to support the share price have already played out.
Against this backdrop, the bank has downgraded its rating from "buy" to "hold," lowering its price target to 280 euros from 310 euros previously.
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, 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 2025, Kering had 43,731 employees and restated revenue of EUR 14.7 billion.
At the end of 2025, the Group had a network of 1,719 stores under its own management, located primarily in Western Europe (361), Japan (225), Asia-Pacific (666) and North America (308).
Net sales are distributed geographically as follows: France (5.6%), Western Europe (24.5%), Japan (7.9%), Asia/Pacific (28.6%), North America (24.2%) and other (9.2%).
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