Kering Stock: Decline of 2.07% at Close Following Third Quarter Results
Kering's stock fell by 2.07% on Wednesday, October 22, closing at 317.30 euros. This decline occurred on the day of the group's first financial release since the appointment of new CEO Luca de Meo, following quarterly results that fell short of market expectations.
Market Performance on Closing Day
At the close of trading on Wednesday, the luxury group's stock dropped by 2.07% to settle at 317.30 euros, erasing some of the gains recorded earlier in the week. The stock was trading at 324 euros the previous day. The capital turnover was established at 0.31%, indicating limited trading volume in a Parisian market that itself retreated by 0.63% for the day. This downward movement contrasts with the positive momentum observed over several weeks. Over seven days, the stock still shows a gain of 6.16%, notably driven by a significant rise of 4.83% on Monday, October 20. On a quarterly scale, the performance remains impressive with a surge of 60.79%, while on an annual basis, the stock is up 36.5%, significantly outperforming the CAC 40 index which has increased by 8.9% over the same period.
Third Quarter Sales Announcement
The session was marked by the release of third quarter sales figures, revealing a 5% decline in the group's revenue. Gucci, a flagship brand in Kering's portfolio, saw a 14% drop in its sales during the period, highlighting the ongoing challenges faced by the group in the luxury segment. The CEO acknowledged that 'Kering's performance in the third quarter remains below market performance.' This announcement came two days after the news of Kering's beauty division sale to L'Oréal for 4 billion euros. This strategic move, unveiled on Monday, October 21, was welcomed by the market and contributed to a nearly 5% increase in the stock during the session on October 20. The transaction includes the beauty license for the Gucci brand, which will now be operated by the French cosmetics giant.
Technical Analysis of Kering Stock
From a technical standpoint, Kering's stock is now trading at 317.30 euros, above its 50-day moving average positioned at 261.41 euros and its 200-day moving average established at 220.95 euros. The RSI stands at 72, indicating an overbought zone that could limit the upside potential in the short term. The MACD indicator displays a positive setup with a MACD line at 15.50 and a signal line at 14.90, with the histogram emerging at 0.60. The resistance threshold is located at 324.50 euros, a level tested earlier in the week, while the support is identified at 233.50 euros. The Bollinger Bands frame the price between 266.72 euros for the lower boundary and 331.06 euros for the upper boundary, placing the stock in the upper part of its trading channel.
