Kering Shares Tumble 4.21% at Close Amid Saks Global Bankruptcy
The stock of the French luxury group closed the session on Friday, January 16, at 288.70 euros, down sharply by 4.21% from the previous day. This decline is part of a difficult sectoral context, amplified by the collateral effects of the bankruptcy of the American distributor Saks Global, which counts Kering among its main creditors.
Continued Downtrend for Gucci's Parent Company
The parent company of Gucci continued its downward movement initiated the day before, following the cold reception of its Swiss competitor Richemont's results by investors. The stock fluctuated between 293.65 and 301.55 euros during the session. Over a week, the decline reaches 6.81% and stands at 7.81% over three months. Technically, the price is now below its 50-day moving average set at 302.96 euros, and is close to its support threshold identified at 286.50 euros. The relative strength index remains neutral at 51, but the MACD histogram in negative territory signals a fragile dynamic. The stock traded 0.27% of its capital.
Kering Ranked as Second Largest Unsecured Creditor of Saks Global
According to documents filed with the Texas bankruptcy court, Kering is ranked as the second-largest unsecured creditor of Saks Global, with a claim of about 60 million dollars, behind Chanel which claims 136 million dollars. The American group, owner of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for Chapter 11 bankruptcy protection after failing to pay some suppliers for several months. Earlier in the week, analysts from Bernstein and Equita SIM had revised their price targets upwards, respectively to 250 and 295 euros, but these adjustments remain well below the current level of the stock. Bernstein maintained its underperformance recommendation, while RBC Capital set a target of 340 euros with a market performance opinion.
