Kering Shares Drop 3.5% Breaking Below the €244 Support Level
Midday trading sees the owner of Gucci dropping below a closely watched technical threshold, amidst a heavily penalized CAC 40 due to a new geopolitical escalation in the Middle East. This decline follows a bullish session and erases some of the renewed confidence observed this week in the stock.
Support at €244.05 Gives Way Amidst a Sharp Decline in the CAC 40
Kering shares fall 3.41% to €243.60, after closing at €252.20 the previous day. During the session, the stock broke through its support at €244.05 and remains just below at midday, in a CAC 40 that is down 2.22% at 8,248 points. The drop is part of a broader retreat: Société Générale, EssilorLuxottica, and Saint-Gobain also recorded declines of more than 4%, amid direct military escalation between Washington and Tehran and a nearly 20% jump in the VIX. The technical outlook has significantly deteriorated.
The price is now 6.62% below its 20-day moving average (€260.86), having crossed it upwards during the early July rebound, and remains 11.80% under its 200-day moving average at €276.20. The RSI at 48 has returned to a neutral zone after approaching 60 last week. The next area to watch is the resistance at €276.55, now distant after the support break.
Beauty Licensing Deal with L'Oréal Overshadowed by Market Context
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The day's decline occurs following the announcement of the 50-year beauty license agreement between Gucci and L'Oréal, unveiled on July 7. This exclusive agreement, finalized a year earlier than expected, extends the Beauty and Wellness alliance formed in October 2025. The catalyst had supported the stock in the previous session; it is now swept away by the general deterioration of market sentiment. Analyst opinion from BM Pekao was upgraded on July 6 from 'sell' to 'hold' and raised its target from €270.42 to €288.67, representing an implied potential of about 18.5% on the current price.
However, valuation remains stretched: according to the consensus of analysts surveyed, the stock is trading at about 37.4 times the expected earnings for the current fiscal year and 24.9 times those of the next fiscal year. The luxury market context remains degraded, with Chinese sales of jewelry/gold down 8.9% year-on-year in May according to official data. The holding or breaking of the €244.05 support will be key to watch in the coming sessions.
À mesure que Kering progresse dans l'exercice 2026, son objectif demeure de renouer avec la croissance et d'améliorer sa profitabilité
Risks mentioned
Recul du chiffre d'affaires de Gucci de 5 % en comparable au premier semestre
Charges opérationnelles non courantes de 223 millions d'euros (cessions, dépréciations, restructurations)
Résultat net part du Groupe en baisse de 60 % à 189 millions d'euros
Opportunities identified
Endettement net réduit de 4,7 milliards d'euros grâce à la cession de Kering Beauté
Contrat de licence beauté Gucci-L'Oréal exclusif sur 50 ans à compter de mi-2027
Kering Jewelry +20 % en comparable, marge courante en hausse de 2,7 points
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
