Oddo BHF reiterates its 'neutral' opinion on Kering, on the basis of a price target lowered from 345 to 336 euros to reflect its new estimates for the luxury group, as well as less favorable market parameters.
Following a dinner with sell-side analysts, the research house reports that CFO Armelle Poulou indicated that patience was required at Gucci "where turnaround efforts are to be judged over time".
Oddo BHF also notes that the stock is trading at a multiple discount of around -25% to LVMH, which 'remains significant in view of a now lower earnings base, but reflects the uncertainty that remains over Gucci's turnaround potential'.
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A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté.
By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. It captures these beliefs in its signature: Empowering Imagination.
In 2023, Kering had 48,964 employees and restated revenue of EUR 19.6 billion.
At the end of 2023, the Group had a network of 1,771 stores under its own management, located primarily in Western Europe (367), North America (316), Japan (238), and in emerging countries (698).
Net sales are distributed geographically as follows: Western Europe (27.6%), Japan (7.2%), Asia/Pacific (35%), North America (23%) and other (7.2%).