Kering Shares Fall 2.5% After Failing to Break Above €277

The Stock Rejects Its €276.55 Resistance After a Brief Surge to €277

Kering shares fall by 2.66% to €269.20, just above its support at €236.85. The stock is among the biggest losers on the CAC 40, which is down 0.44%. The luxury sector weighs on the Paris index: L'Oréal, Hermès, and EssilorLuxottica join Kering in the red. The session began with an attempt at a bullish breakout.

The stock climbed to €277 and briefly crossed its €276.55 resistance before falling back below this level. This technical failure marks a break after the rebound of recent weeks (+12.86% over one month and +10.91% over three months). However, the price remains above its MM20 (€254.46) and MM50 (€249.31), with an RSI at 66, moving away from the overbought zone. The MM200, at €275.60, remains slightly above the price, continuing to cap any sustained recovery attempts.

Luxury Sector Under Pressure as Chinese Economic Conditions Remain Unfavorable

The decline occurs in a sector weakened by the Chinese economic situation. Jewelry and gold sales in China dropped by 21.3% year-on-year in April, according to official data, while overall retail consumption remains stagnant (+0.2%). The global macroeconomic environment also does not favor the sector: the Federal Reserve has kept its rates at 3.50-3.75% and hardened its stance, with nine FOMC members now anticipating a hike by the end of 2026.

In terms of valuation, the stock is trading at about 41.4 times the expected earnings for the current fiscal year and 27.4 times those of 2027, according to the consensus of surveyed analysts. The 49.62% rally over the past year leaves little room for a further slippage in fundamentals. The next technical reference remains the support at €236.85, in case the decline extends below the short moving averages.