Kering stock slips further and loses nearly 2%, weighed down by China
In a virtually stable CAC 40 on Monday, Kering is among the few securities in sharp decline, intensifying a bearish momentum that has been pressuring the stock for several weeks. The day is marked by a new position taken by an analyst, who downgrades his rating on the stock.
Rothschild & Co Redburn downgrades to "sell" with a target price of €225.76
On Monday, Rothschild & Co Redburn downgraded its rating on Kering from "neutral" to "sell", lowering its price target from €235 to €225.76 in the same move. At €240.70 in trading, the stock is thus trading above the target set by the brokerage, which implies a downside potential of approximately 6% compared to the current price according to this rating. This revision comes as the group is going through a difficult period operationally.
When publishing first-half 2026 results on July 29, Kering reported a 5% decline in comparable sales for Gucci, its flagship brand, and a net profit attributable to the group down 60% to €189 million. Management had indicated at the time that it wanted to return to growth and improve profitability in the coming quarters, without providing specific numerical targets. Based on expected earnings per share, the stock is trading at approximately 37.7 times the earnings of the current fiscal year according to the consensus of analysts tracked, a high valuation given the current operational context.
The stock remains below its three key moving averages in a pressured luxury market
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The price of Kering at €240.70 remains well below its three key moving averages: the 20-day MA at €262.22, the 50-day MA at €259.64 and the 200-day MA at €266.87, representing gaps ranging from 7% to nearly 10%. This configuration, established for several weeks, illustrates the selling pressure exerted on the stock, whose decline has reached nearly 17% over one month. The RSI at 42 remains in neutral-low territory, without a clear technical rebound signal.
Today's decline of 1.84% places Kering among the largest losers in the CAC 40 in trading. The sector context is not providing support either: jewelry sales in China fell 10.1% year-on-year in July 2026 according to official data, in a luxury consumption environment that remains under pressure in the country, a key market for the group. The support level at €238.80 constitutes the next level to watch if the decline were to accelerate.
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.
