Kering Shares Drop 2.25% Midday Despite New York Real Estate Sale
Kering shares fell by 2.25% midday this Thursday, December 18, dipping below 306 euros to 305.95 euros after closing at 313 euros the previous day. Despite a strategic announcement on Monday, investor caution persists, reflected in the extremely low trading volume of only 0.03% of the capital during the session. Over the week, the stock still shows a gain of 5.94% and an impressive annual increase of 27.93%, indicating a gradual recovery from the historically low levels of 2024.
Market Context and Analyst Caution
This decline occurs in a contrasting market environment for the luxury sector. The release of a report by Oddo BHF maintaining a 'Neutral' rating with a target price of 322 euros was not enough to support the stock. Analysts' caution reflects ongoing uncertainty about the group's ability to sustainably improve profitability, despite debt reduction efforts by the new management. Investors also seem to be factoring in the prospects of a fourth quarter likely similar to the third, with no significant short-term improvement.
New York Real Estate Co-Investment Deal
On Tuesday, Kering announced it had finalized a co-investment agreement with Ardian involving a property in New York, valued at a net amount of 690 million dollars (approximately 587 million euros), in a transaction worth 900 million dollars. The group contributed this asset to a joint venture in which Ardian will hold 60% and Kering will retain 40%. This operation follows a similar partnership established in January 2025 in Paris, which had enabled the group to generate 837 million euros. The property at 715-717 Fifth Avenue includes about 10,700 square meters of luxury retail space across several levels. Acquired by Kering in January 2024 for 885 million euros, the asset is partially sold less than a year after its acquisition. Facing heavy debt and a slowdown in the luxury market, the group controlled by the Pinault family is looking to cut costs and refinance by selling some real estate assets. This strategy allows the group to secure the commercial use of iconic locations while improving its financial structure, in a context where debt reached 9.5 billion euros in the first half of 2025.
Technical Analysis of Kering's Stock
Technically, Kering's stock is in a zone of uncertainty despite its strong recovery since early autumn. The RSI remains at 66, approaching the overbought limit of 70, suggesting a risk of short-term consolidation after several weeks of gains. This indicator reflects a positive momentum that could quickly fade if trading volumes do not increase. The MACD histogram shows a positive value at 2.54, indicating a resurgence of bullish momentum. However, the stock is now very close to its 50-day moving average at 306.74 euros, which serves as an immediate technical support. Breaking through the major resistance at 321.35 euros would signal a continuation of the upward trend, while a return below the support at 286.50 euros would weaken the current configuration. The 200-day moving average, at 230.84 euros, confirms a fundamentally bullish trend over several months, illustrating the stock's recovery from its early 2025 lows. The next few sessions will be crucial to confirm whether the recovery movement will continue or not.
