Kering Shares Surge 3.54% Following Beauty Division Sale
Kering's stock leads the gains on the CAC 40 at mid-session this Monday, October 20, posting a 3.54% increase to 320.50 euros. This rise is part of a sustained upward trend over several weeks, with a 3.72% increase over the last seven days and a 62.41% surge over the past three months. Over a year, the performance reached 34.64%, significantly outperforming the CAC 40 which advanced by 7.36% over the same period. Trading volumes remain moderate, representing 0.1% of the capital, in an almost stable Parisian market at 8,173.05 points, slightly down by 0.01%.
Strategic Deal with L'Oréal Boosts Kering's Stock
This increase comes in the wake of the announcement of a major strategic agreement with L'Oréal. Kering confirmed on Sunday the sale of its beauty division, including the Creed brand, for an amount of 4 billion euros. The transaction also includes the granting of exclusive 50-year licenses to L'Oréal for the creation and distribution of perfumes and beauty products for the Gucci, Bottega Veneta, and Balenciaga brands. For Gucci, the license will start after the current contract with Coty expires, estimated around 2028. This transaction, expected to finalize in the first half of 2026, aims to significantly reduce the group's debt, which stood at 9.5 billion euros at the end of June 2025. The market has favorably received this strategic refocus by the new CEO Luca de Meo, who took office in September, allowing the group to concentrate on its core business in fashion and leather goods.
Technical Analysis: Kering Stock Breaks Resistance
Technically, the stock has surpassed its resistance at 314.80 euros, confirming the strength of the bullish movement that began several weeks ago. The price is now close to the upper boundary of the Bollinger Bands, set at 325.54 euros, indicating a significant extension compared to recent average fluctuations. The Relative Strength Index, positioned at 63, reflects a bullish momentum without indicating overheating, with the overbought zone generally above 70. The stock also benefits from a position well above its 50-day and 200-day moving averages, at 256.97 euros and 219.94 euros respectively, highlighting the solidity of the underlying trend. However, the MACD histogram, slightly negative at -0.39, suggests some caution regarding the immediate persistence of the bullish dynamic. The Chaikin Money Flow, an indicator measuring cash flows, shows a value of -0.07, indicating that despite the rise in prices, buying flows remain limited, which could reflect a certain wait-and-see attitude from institutional investors regarding this significant operation.
Moderate Monthly Volatility Indicates Stability
The monthly volatility of the stock is set at 10.68%, a moderate level that reflects a relative stability of short-term fluctuations. The Average True Range, measuring the average daily variation amplitude, is at 6.03 euros, providing a benchmark for evaluating the daily movements of the stock. With a beta of -0.20, Kering shows a negative correlation with the CAC 40, meaning that the stock tends to move in a decoupled, or even inverse, manner relative to the Parisian index. This characteristic may interest investors looking to diversify their portfolio against general market movements. The technical support, identified at 233.25 euros, remains far from the current price, offering a substantial safety margin in case of a correction. The On Balance Volume, a cumulative volume indicator, remains negative at -2,650,189, which may suggest that the selling pressure of recent months has not yet been fully absorbed despite the recent rebound.
