Kering Shares Drop to €231.35, Approaching Key Support Level
Kering shares fell by 2.32% to €231.35 at midday, in a CAC 40 down by 0.67%. The stock is among the largest declines in the Paris index, following a pressured luxury sector. The company is nearing its support level at €227.25, with the general meeting scheduled for May 28.
Luxury Sector Penalized by Brent Crude Surging Above $110
The luxury sector is paying a heavy price this session. Hermès International is down 2.28%, LVMH has dropped 2.01%, in a widespread retreat. Kering is among the biggest losers in the CAC 40, alongside Saint-Gobain and Stellantis. Brent crude is trading above $110 a barrel, supported by the ongoing conflict in Iran and restrictions on the Strait of Hormuz. This surge in energy prices fuels fears of sustained inflation, impacting discretionary consumer stocks. The yield on the 10-year U.S. Treasury note has climbed to 4.63%, its highest since February 2025, complicating the scenario for rate cuts and affecting long-term assets. The sectoral context remains mixed in China. Statistics released by the NBS show a rebound in jewelry and gold sales by 11.7% year-over-year in March, but overall retail growth is limited to 1.7%. Kering, which presented its strategic plan 'ReconKering' during its Capital Markets Day on April 20, is betting heavily on its ability to reconquer the Chinese market, where the group has announced a minority stake in ICCF, a partner linked to the ICICLE brand.
Stock Approaches Support at €227.25 and Remains Below Its Three Moving Averages
The stock is at the lower end of the Bollinger bands (at 19% of the band), with a lower boundary at €226.07. The technical support identified at €227.25 is immediately within reach, less than 2% from the current price. The RSI at 44 remains neutral, with no marked oversold signal despite a weekly drop of 5.92%. The stock is trading below its MM20 (€239.93), MM50 (€249.74), and MM200 (€271.51), showing a gap of nearly 15% below the long-term average. This configuration indicates a well-established downward trend, with a quarterly decline reaching 15.23%. However, the performance over the past year remains positive (+29.59%), reflecting the late 2025 rally. In terms of valuation, the stock is trading at approximately 34.8 times the expected earnings for the current fiscal year, compared to 14.3 times on average for the Consumer Discretionary sector. The consensus, however, bets on a 49.6% growth in earnings per share over the next year, bringing the multiple to 23.3 times the 2027 earnings. The next important event is the general meeting on May 28, which will finalize the restructuring of the board of directors.
