Kering Shares Drop 3.6% to €237.05, Weighed Down by Middle East Tensions
In early afternoon trading, the luxury group's stock falls 3.6% to €237.05, as the CAC 40 index declines by 1.17%. Kering ranks 39th out of 40 on the index, just ahead of LVMH (-4.36%). The luxury sector is under pressure as Brent crude surpasses $103 and tensions between Iran and Washington intensify.
European Luxury Sector Plummets as a Whole, Kering Follows LVMH
Kering is among the top five declines in the CAC 40, alongside LVMH (-4.36%), Hermès (-2.80%), and Airbus (-2.98%). The SBF 120 is down by 1.08% and the DAX drops by 0.26%. The luxury sector suffers due to its high exposure to China and international tourism amid heightened geopolitical tensions in the Middle East. The sector's situation remains mixed: Chinese jewelry sales have increased by 11.7% year-on-year in March according to the NBS, but total retail sales in China have only grown by 1.7%. The OECD's leading indicator for China stands at 98.80, below its long-term trend. The rebound that began in late April, which had pushed the stock to €250.15 on May 7, is largely erased today. Over three months, the stock has lost 17.7%; however, it still shows a gain of 33.2% over one year.
Below All Moving Averages, Support at €227.25 in Sight
The stock is trading below its three moving averages: MM20 at €246.48 (a gap of -3.83%), MM50 at €253.53 (-6.50%), and MM200 at €270.91 (-12.50%). The outlook remains bearish at all maturities. The RSI at 48 is neutral, with no oversold signal, and the Bollinger Bands place the stock at 34% in the lower part of their range (€216.36 / €276.60). The technical support identified at €227.25 (4.1% below the current price) becomes the next graphical reference in case of an extended decline. In terms of valuation, the stock trades at 35.7 times the earnings expected for the current fiscal year according to the consensus of 18 analysts followed by yfinance, compared to 14.4 times for the average of the Consumer Discretionary sector. The expected EPS growth from one fiscal year to the next is +49.6%. The next financial calendar event is the 2026 general assembly on May 28.
