KERING Stock: 12.21% Increase in a Week Following Better-Than-Expected Q3 Results
Kering experienced a strong bullish momentum this Thursday following the release of its third-quarter results. The stock quickly rose at the opening, driven by performance deemed better than anticipated by the consensus of analysts. This momentum contrasts with the period of fragility the luxury group has been experiencing for several months.
Current Trading Session Overview
Kering's stock is priced at €351.40 this noon, marking a 10.75% increase from the previous close of €317.30. This rise positions the luxury group among the top gainers in the CAC 40 on Thursday midday, while the broader index modestly increased by 0.43%. The trend is part of a firmly established upward movement: over seven days, Kering has accumulated a 12.21% gain, and over three months, it has shown a performance of 73.45%, significantly outperforming the benchmark indices. Over twelve months, the group has advanced by 49.91%, far surpassing the CAC 40's performance over the same period (+9.39%). This surge strongly contrasts with the weaknesses that have weighed on the stock in recent months. However, the extent of trading remains remarkably moderate: only 0.21% of the capital changed hands on Thursday at midday, suggesting a rapid market reaction but on very reduced transaction volumes. This low volume sharply contrasts with the intensity of the price movement observed and raises questions about the robustness of the bullish impulse. Looking further out, the picture becomes more complex: since January 2025, Kering has progressed by 45.29%, while over five years the stock has experienced a structural decline of 37.74%, illustrating the extreme volatility that characterizes the group and the scars left by the image crises affecting its brands since 2020.
Spectacular Recovery Rooted in Recent Results
This spectacular recovery finds its direct justification in the release on Wednesday, October 22, of third-quarter results that were favorably received by the market. Kering recorded a revenue of €3.4 billion for the July-September period, down 10% in reported figures. Adjusted for constant exchange rates, the decline stands at 5%, significantly exceeding the consensus expectations, which anticipated a decline of about 9.6%. The relative improvement compared to the previous quarter is significant: the group reported a 15% decline in the second quarter, signaling a tangible improvement in commercial dynamics over six months. The flagship brand Gucci, which generates 38% of the quarterly revenues, contributed €1.3 billion, down 14% on a comparable basis against an expectation of 15.34%. Although this performance continues a decline for the seventh consecutive quarter, confirming the ongoing fragility of the brand, it nevertheless showed encouraging signs of stabilization. Within Gucci, own-store sales contracted by 13%, but showed notable sequential improvement, benefiting from better dynamics in North America and Western Europe. The relay also came from the success of new collections in leather goods, a strategic luxury segment. The wholesale channel remains more strained, with a decline of 25%. Beyond the raw figures, analysts noted that the group maintained its guidance on gross margin and control of operating expenses.
Technical Analysis of Kering's Stock
Technically, Kering is trading above its moving averages: well beyond €263.41 (MM50) and €221.42 (MM200). The Relative Strength Index (RSI) is at 66, approaching the overbought threshold of 70. The stock is moving out of the Bollinger Bands (€331.96 on the upper side). The MACD shows a line at 15.31 very close to the signal at 15.28, revealing a momentum that is beginning to fade. The low trading volumes remain a major concern.
