Kering KER.PA
Kering is a French luxury group managing a portfolio of fashion and leather goods houses, with Gucci as its main revenue and profit driver. Kering presents a deteriorated financial profile: earnings growth of -60.10%, negative ROE (-1.60), and net debt of 3.75x EBITDA. The valuation (forward P/E 22.51) is not attractive given the business deterioration, and the dividend (payout 101%) is not covered by earnings. The stock trades at the 1st percentile of its 52-week range, reflecting the weakness of the luxury sector and Gucci's specific challenges.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Kering is a French luxury group managing a portfolio of fashion and leather goods houses, with Gucci as its main revenue and profit driver. Kering presents a deteriorated financial profile: earnings growth of -60.10%, negative ROE (-1.60), and net debt of 3.75x EBITDA. The valuation (forward P/E 22.51) is not attractive given the business deterioration, and the dividend (payout 101%) is not covered by earnings. The stock trades at the 1st percentile of its 52-week range, reflecting the weakness of the luxury sector and Gucci's specific challenges.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.2 |
| Quality / Moat | 5.5 |
| Valuation | 5.0 |
| Growth | 1.1 |
| Dividend | 3.0 |
| Momentum | 3.0 |
| Risk & Context | 5.1 |
OVERALL SCORE: 4.3/10
Context and risks
Kering operates in the luxury sector, which is sensitive to the economic cycle and consumer confidence. Weakness in China and the normalization of luxury spending after the post-pandemic boom are structural risks for its main brand, Gucci. The context of high interest rates in the US and a strong dollar may affect demand from US tourists and consumers, although the effect is indirect and already partially discounted in the stock's decline.
News considered in the analysis
- Private: Burberry, Kering Cite ‘Resets’ to Capitalize on Luxury’s Rebound — Reconocimiento de un 'reset' estratégico en el lujo; sugiere un punto de inflexión para Kering, aunque aún no hay evidencia concreta de recuperación en sus cifras.
- Coty (COTY) Faces A Transition Year As Valuation Stays In Focus — Noticia sobre un competidor indirecto (Coty), sin impacto directo en Kering.
- Integrated Marketing Firm One Group Takes Over Event Company Italia Eventi — Operación corporativa en el sector de eventos, sin relación con el negocio de lujo de Kering.
- Kering Expands Generation Award to India — Expansión de su programa de apoyo a jóvenes talentos en India; refuerza su presencia en un mercado clave de lujo a largo plazo, aunque sin impacto financiero inmediato.
- Icicle Names Sabato De Sarno as Creative Director — Nombramiento en una marca china (Icicle), sin relación directa con Kering.
Verdict: Hold or reduce exposure; wait for clear signs of stabilization in Gucci and revenue growth before considering an entry.
Main risk: The main risk is the continued decline in earnings (-60.10%) and the weakness of Gucci, its main growth driver, in a weak luxury demand environment, especially in China. High debt (3.75x EBITDA) amplifies the risk if interest rates continue to rise.
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