Kering shares could experience selling pressure following the strong increase in its stock price. Over the short term, the stock in fact displays first signs of exhaustion.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
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Strengths
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● The company returns high margins, thereby supporting business profitability.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
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● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● The firm trades with high earnings multiples: 32.24 times its 2021 earnings per share.
● The company's enterprise value to sales, at 6.14 times its current sales, is high.
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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%).