Shares in French luxury group Kering rose sharply on the Paris Stock Exchange on Thursday after reporting third-quarter sales figures. Although sales fell by ten percent, they were above market expectations.
At around 9:25 a.m. Middle European Time (CET), the shares rose by 8.12 percent to 332.35 euros, while the overall market rose by 0.27 percent. “Kering published results that were even better than expected despite already high expectations,” praised Adam Cochrane, analyst at Deutsche Bank, in a note.
On Wednesday, Kering reported a ten percent decline in sales for the third quarter to 3.4 billion euros. The analyst consensus determined by Bloomberg had expected 3.3 billion euros. Adjusted for currency effects, sales fell by five percent. “This improved business performance affects all major brands, which is an important point. The gross margin and operating cost forecasts are maintained. This has a positive impact on the group’s operating profit forecasts,” emphasized Cochrane.
Gucci, the group’s main brand, alone generated 44 percent of sales in the third quarter and two-thirds of operating profitability, but has not yet been able to fully recover. In the third quarter, Gucci’s sales fell by 18 percent to 1.3 billion euros. However, this is an improvement compared to the first and second quarters, in which sales fell by 24 and 27 percent respectively.
“At Gucci in particular, the improvement was driven by the leather goods category. Bag ranges have been renewed over the last 18 months. These lines should benefit from continuity when the Demna Gvasalia-inspired ready-to-wear collections launch in the first half of 2026,” Cochrane noted. Gvasalia took over the management of the Italian brand in July.
The group expects “a decline in sales in the fourth quarter compared to the previous year, which is approximately the same as in the third quarter,” explained CFO Armelle Poulou in a conversation with analysts on Wednesday.
According to Adam Cochrane, this means for analysts that Kering is likely to maintain its lead compared to market expectations.
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