Kering's Shares Plunge Over 10% During Session After Gucci's 8% Decline
On Wednesday, the luxury group's stock experienced a sharp drop, losing more than 10% to 251.35 euros during the session. This fall followed the announcement of the first quarter 2026 revenue, confirming the ongoing struggles of the group's flagship brand. The CAC 40 fell by 0.63% during the session, while LVMH dropped nearly 1%.
Direct Impact from Revenue Announcement
The correction is directly linked to Tuesday's announcement of Kering's quarterly revenue, which remained stable over the period. Although the group has achieved some overall stabilization, a closer look at individual brands reveals significant disparities. Kering's main brand, Gucci, reported another 8% decline in comparable data, heavily impacting market perception. Conversely, the jewelry division recorded a 22% growth, reaching a historical high, while the eyewear business had its best quarter. Meanwhile, three major transactions—in beauty, jewelry, and real estate—were finalized, strengthening the group's balance sheet and clarifying its strategic priorities. However, these advances are not sufficient at this stage to offset the disappointment linked to the group's historical driver. On the same Wednesday, two banks revised their price targets downward. UBS lowered its target from 300 to 271 euros, maintaining a neutral rating. Deutsche Bank reduced its target from 290 to 280 euros, also keeping its hold recommendation. At current levels, these targets imply a rebound potential of between 8% and 11% from the price of 251.35 euros.
Technical Analysis of the Day's Drop
From a technical standpoint, today's drop has significantly brought the stock below its 50-day and 200-day moving averages, which stand at 264.40 and 267.31 euros respectively. This double downward breach is a strong signal of vulnerability, especially as the stock is now trading in the lower part of its Bollinger Bands, at 40% of the range between the lower bound (228.62 euros) and the upper bound (284.83 euros). The nearest support level is at 232.60 euros. The immediate resistance corresponds to the previous zone around 280 euros, which was the closing price the day before and has now become a technical ceiling. The more than 19% decline over three months highlights the prevailing downward trend since the beginning of the year, despite a still positive performance over one year (+47%). The monthly volatility stands at 11.56, a level that reflects the amplitude of recent movements in the stock. The upcoming general meeting scheduled for May 28 will be the next important event to assess the group's roadmap.
