Kering builds Gucci-focused turnaround, shares under analyst scrutiny

Luxury group Kering is pressing ahead with a turnaround at Gucci and other houses while analysts reassess the stock after a sharp earnings reset in April. The focus now is on execution and margins in a slowing high-end demand environment.

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-23, 07:13.

Kering (FR0000121964) continues to work through a strategic reset at Gucci and its other luxury brands after a marked profit slump earlier this year. The Paris-listed group, a member of the CAC 40 alongside peers such as LVMH and Hermès, remains under close analyst scrutiny following its April warning on sales and margins according to a detailed Reuters report on the reset.

What recent figures showed

On 23 April 2024, Kering reported that first-quarter 2024 group revenue fell 10 percent on a reported basis to 4.5 billion euros, with Gucci sales down 21 percent on a comparable basis to 2.1 billion euros as Chinese demand weakened and the brand transitioned under new creative direction per the company’s Q1 2024 revenue release. Management guided for a “sharp drop” in first-half recurring operating profit versus the prior year as investments in brand elevation and store upgrades weigh on short-term profitability while the new Gucci offer ramps up.

For full-year 2023, Kering had already reported a 6 percent decline in revenue to 19.6 billion euros and a 16 percent drop in recurring operating income to 4.7 billion euros, pressured mainly by Gucci and its smaller fashion houses as detailed in the group’s 2023 annual results. The recurring operating margin narrowed to 24.5 percent, down from 28.4 percent in 2022, underscoring the profitability gap versus LVMH’s fashion and leather goods division and reinforcing the need for a deeper restructuring of Kering’s portfolio.

How analysts now rate the stock

Following the April warning, several banks downgraded Kering or cut price targets, leaving the stock with a more cautious consensus picture on Euronext Paris. On MarketScreener, 31 analysts currently track Kering, with 10 rating the stock Buy, 16 at Hold and 5 at Sell, and an average target price around 397 euros compared with a mid-300-euro trading range in recent weeks according to MarketScreener’s consensus overview. That distribution reflects both the strength of the group’s brands and the uncertainty around the timeline for a Gucci turnaround.

UBS has maintained a Neutral stance on Kering, highlighting execution risk at Gucci and a slower-than-expected luxury demand recovery in China, while emphasizing that a successful repositioning could restore double-digit growth and margin expansion over time based on a UBS luxury sector update discussing the group’s challenges. Other houses, including JPMorgan and Bernstein, have similarly stressed that investors will require several quarters of evidence on like-for-like sales trends and profitability before re-rating the shares closer to historical multiples.

The brands behind the stock

Kering generates the bulk of its revenue from its fashion and leather goods houses, with Gucci as the flagship label alongside Saint Laurent and Bottega Veneta, complemented by smaller brands such as Balenciaga and Alexander McQueen as outlined on the group’s brand overview page. The group also owns the Kering Eyewear platform, which designs, develops and distributes eyewear for its own labels and licensed brands, positioning the company across several segments of the global luxury market.

Where the shares trade today

The Kering shares (FR0000121964) trade on Euronext Paris, where they last changed hands at around 365 euros on 2026-06-21, 17:35, according to recent exchange data, with the stock reflecting investor expectations around the pace and success of the Gucci-led turnaround.

Key data on the Kering shares

• Company: Kering S.A.
• ISIN: FR0000121964
• WKN: 851223
• Ticker: KER
• Trading venue: Euronext Paris
• Price (as of 2026-06-21, 17:35): 365.00 EUR
• Market cap: 46.0 billion EUR (as of 2026-06-21)
• Sector / industry: Consumer Discretionary / Luxury Apparel & Accessories
• Index membership: CAC 40, Euro Stoxx 50
• Next earnings date: 2026-07-25

This article is for informational purposes only and does not constitute investment advice, investment recommendation or an offer or solicitation to buy or sell any financial instrument. Investors should conduct their own research and, where appropriate, consult a professional adviser before making investment decisions.