KERING.UNSP.ADR 1/10 EO 4

Kering shares dropped over 5% after a conference call in which management issued more cautious remarks about the near-term outlook. Barclays now views the annual forecast as increasingly unattainable and expects organic sales for Gucci to decline by 5% in the second quarter, while Citi cuts Gucci’s constant‑currency full‑year growth to -1.2%. Both banks see only limited relief from margin gains, which would mainly stem from cost cuts. Investors are focusing on the half‑year results on July 28 and on any signs whether Gucci can return to sustained growth. » Mere på de.investing.com

Kering presented the “ReconKering” strategy at a capital markets day, with CEO Luca de Meo aiming for a structural restart by the end of 2026 after the growth slowdown, particularly at Gucci. The goal is to restore financial discipline and operational efficiency, double the recurring operating margin to 11.1% in the medium term, and achieve sustainable growth by the end of 2028. Measures include realigning Gucci’s product architecture, quality improvements, a stronger focus on China, and assortment expansions at Saint Laurent and Balenciaga. Kering also plans a dividend payout ratio of around 50% of recurring net income and aims to raise return on capital employed to over 20% in the medium term; the shares fell as much as about 2.7% intraday. » Mere på finanzen.net

New CEO Luca de Meo has given investors renewed confidence with initial measures and the prospect of growth and higher margins for 2026, prompting Kering shares to jump by up to 13 percent at times. In the fourth quarter, currency-adjusted revenue fell 3 percent to €3.9 billion; Gucci suffered a 10 percent sales decline, but losses were smaller than expected. Kering has already cut costs, closed 75 boutiques and plans increased brand investment and a management overhaul; at the center of the turnaround is Gucci with new creative director Demna. For the full year 2025, operating profit plunged to €1.63 billion and the operating margin fell to 11 percent; adjusted net profit reached €532 million. » Mere på wiwo.de