Kering Falls 2.68% in Session, Exposure to Saks Global Bankruptcy
Kering dropped 2.68% during Monday's session, under pressure after being the second largest unsecured creditor of bankrupt Saks Global since January 14, with an exposure of $60 million. The stock continues its weekly correction of 11.48% and is trading below its 50-day moving average at 302.68 euros.
Continued Downward Trend and Technical Indicators
Kering lost 2.68% in Monday's session, continuing a downward trend that began on January 12. Over seven days, the decline reached 11.48%, while the quarterly performance shows a contraction of 9.24%. The price is now at 280.95 euros, below its 50-day moving average set at 302.68 euros, signaling a weakened short-term momentum. The support threshold of 286.50 euros, approached last Friday at 287.90 euros, was breached during the session. The technical resistance remains at 317.40 euros, a level not reached since January 15.
The RSI at 40 indicates a neutral zone, away from oversold thresholds, while the MACD histogram at -1.51 reflects persistent selling pressure despite a still positive MACD line at 0.91. Bollinger Bands frame the price between 292.38 euros on the low end and 319.22 euros on the high end, placing the stock close to the lower boundary and suggesting increased volatility. Over three months, the performance of -9.24% contrasts with the annual gain of 15.76%, showing a divergence between long-term trend and recent correction. Trading volumes remain limited with 0.03% of capital traded in session.
Position as Second Largest Unsecured Creditor of Saks Global
Kering ranks second among the unsecured creditors of Saks Global with a claim of about $60 million, behind Chanel which claims $136 million. The American retailer, owner of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection on January 14. Saks Global faced a default on interest payments of over $100 million on acquisition-related debt, triggering a chain reaction that led to this restructuring process.
This financial exposure adds to the operational difficulties of the group, whose flagship brand Gucci struggles to regain its growth trajectory. Earlier last week, Bernstein and Equita SIM revised their price targets upwards to 250 and 295 euros, respectively, but with cautious recommendations. Bernstein maintains an underperform rating and anticipates a 2.3% decrease in revenue and an 11.1% decline in operating income by 2026. RBC Capital has a more optimistic target of 340 euros with a market performance recommendation, reflecting divergent analyses on the group's recovery capacity. The completion of the sale of Kering Beauté to L'Oréal, expected in the first half of 2026, should bring in 4 billion euros in cash to reduce debt.
