Kering shares, CAC 40 laggard, hit five-year low
The luxury group that owns Gucci and Saint Laurent is trailing the CAC 40 mid-session, significantly behind the rest of the index. The decline follows the publication of third-quarter revenue and coincides with two downgrades of price targets.
Stable revenue that the market sanctions and two price targets revised downward
The stock is down 11.78% to €188.36, the steepest decline in the index, while the CAC 40 is down 0.77%. Kering published on October 22 third-quarter revenue of €3,345 million, stable on a reported basis and down 1% at constant perimeter and exchange rates. Gucci generated €1,291 million of this total, and its decline was offset by Kering Jewelry, Kering Eyewear and several houses in the Fashion & Leather Goods division. The group confirmed its target for improving operating margin in 2026, while pointing to in-store traffic as the quarter's main constraint.
Two houses lowered their target on October 23. UBS cut its price target from €224 to €219 while maintaining its neutral rating, while TD Cowen reduced it from €235 to €210. Both targets remain above the current price, 16% for UBS and 11% for TD Cowen. Today's decline brings the weekly loss to 12.74% and the three-month decline to 24.88%.
The €206.55 support level broken and RSI fallen to 23
The stock has broken through the €206.55 level, the low of the past 250 sessions, which is now becoming a resistance level. The stock is thus trading at its lowest point in over 250 sessions, and it has lost in a single session the gap that separated it from this floor. It is trading below its three moving averages: the 20-day MA at €213.79 is 11.89% above the current price, the 50-day MA at €231.78 is 18.73% above, and the 200-day MA at €252.91 is 25.52% above. The RSI at 23 places the stock in a marked oversold configuration.
The session is playing out in a Paris market oriented downward, while the yield on the 10-year OAT reached 5.13% on October 22, according to the Banque de France. Among other index stocks, Safran declined 8.48% and Accor fell 2.52%, but these two movements have their own reasons. The next milestone will be the breaking, upward or downward, of the €206.55 zone.
