Kering: Another Cut To Estimates (Rating Downgrade)

Mare Evidence Lab
5.75K Followers
(10min)

Summary

  • Kering's Q1 sales fell 14% to €3.8 billion, missing expectations. Gucci sales dropped 25%, and regional declines occurred in APAC, the Americas, and Europe.
  • We forecast further sales declines in Q2 and cut our 2025 sales estimates.
  • Higher financing costs, FX headwinds, and continuous management changes pose short-term risks.
  • Considering a YTD stock price underperformance, we moved our rating to sell due to a lack of earnings visibility and ongoing negative earnings revisions.

Gucci store at Ginza district in Tokyo, Japan.

fatido

Following the Q1 print, we are back to comment on Kering (OTCPK:PPRUF)(OTCPK:PPRUY). As usual, Kering's disclosure was limited to top-line sales, with a geographic region and business segment breakdown. That said, Q1 marked another disappointing quarter, which led the

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