Kering Shares Under Pressure at Close Due to Exposure to Saks Global
Kering's share price fell by 2.6% on Tuesday, January 20th, closing at 269.65 euros, continuing its downward trend amid financial exposure to the bankruptcy of American retailer Saks Global. The stock remains technically pressured, showing a decline of 14.19% over seven days and 12.89% over three months, although it still records an annual increase of 11.1%.
Significant Unsecured Creditor Status and Operational Challenges
The French luxury group ranks as the second largest unsecured creditor of Saks Global, holding a claim of approximately 60 million dollars, following Chanel which claims 136 million dollars. The American retailer, owner of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection on January 14th. This exposure comes at a time when the group is already facing operational difficulties with its flagship brand Gucci and has a high net debt. Analysts remain cautious about the stock. Bernstein and Equita SIM have recently revised their price targets to 250 and 295 euros respectively, with Bernstein maintaining an underperformance rating and forecasting a revenue decrease of 2.3% and an operating result decline of 11.1% by 2026. These recommendations suggest a potential downside from the current price, reflecting the uncertainties weighing on the stock.
Technical Analysis and Future Financial Relief
Technically, the stock is now significantly below its 50-day and 200-day moving averages, set at 302.16 euros and 241.45 euros respectively, indicating a structural bearish trend. The RSI at 37 points shows a weakness area without signaling oversold conditions, leaving room for further decline. The support level at 276.85 euros, recently broken, now acts as a short-term resistance, while the resistance level is at 317.40 euros. However, the group should benefit from financial relief with the expected completion in the first half of 2026 of the sale of Kering Beauté to L'Oréal for 4 billion euros in cash. This transaction should help reduce debt and refocus the group on its fashion and leather goods activities, in a context where recovery hinges on stabilizing Gucci amid still fragile Chinese demand.
