Kering stock rebounds but remains below its three moving averages
The luxury group chaired by François-Henri Pinault posts a modest rebound on Wednesday, in a CAC 40 that also closes higher. The stock, however, remains trapped below its three moving averages, at levels that reflect the downward pressure accumulated over several weeks.
A rebound of 1.32% that fails to make up for the technical lag accumulated over the month
Kering closes at €237.45, up 1.32% compared to the previous day (€234.35), in a CAC 40 that gains 0.62% at close. This rebound occurs as the stock still posts a decline of 11.58% over one month, a downward dynamic that illustrates the magnitude of the lag to be recovered. Over the week, performance is also negative at -2.84%, which puts the scope of today's movement into perspective. The technical picture remains heavy.
The price is trading below its three moving averages: the 20-day MA at €247.02 (gap of -3.87%), the 50-day MA at €256.90 (gap of -7.57%) and the 200-day MA at €264.56 (gap of -10.25%). The RSI at 37, although still above the oversold zone, reflects a selling momentum that has slightly eased during the session. The support at €232.25 remains the threshold to watch in case of further decline, while the resistance at €289.75 remains very distant relative to the current price.
Degraded half-year results and a difficult sector context in China
Published on July 29, 2026, the first half 2026 results had revealed a marked contraction in profits, with net income attributable to the group down 60% to €189 million. Revenue from Gucci, the group's main brand, had declined 5% on a comparable basis over the period, and non-recurring expenses had weighed €223 million. The group had, however, posted significant debt reduction thanks to the sale of Kering Beauty, and the jewelry branch had progressed 20% on a comparable basis. In this context, management had expressed its willingness to return to growth and improve profitability without providing precise numerical targets.
The sector context remains difficult: jewelry retail sales in China fell 10.1% year-over-year in July 2026 according to official data, while Chinese household consumption, published today by the National Bureau of Statistics, advanced only 0.4% year-over-year in August. For a group heavily exposed to high-end demand in Asia, this slowdown in Chinese customer demand represents a persistent drag. Furthermore, the U.S. Federal Reserve's decision on Wednesday to raise its policy rate adds to tensions on global financial conditions, an environment that is unfavorable to luxury stocks with elevated valuations. According to the analyst consensus, the stock trades at around 37 times current fiscal year earnings and 23.9 times the following fiscal year's earnings, a valuation that reflects still cautious expectations regarding margin recovery.
