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1. Company Snapshot

1.a. Company Description

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories.The company offers shoes; leather goods, including handbags and wallets, purses, and other leather products; eyewear, textile accessories, etc.; and jewelry and watches, as well as ready-to-wear products for men and women.It also provides perfumes and cosmetics.


The company provides Gucci, Saint Laurent, Bottega Veneta, Alexander McQueen, Balenciaga, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Girard-Perregaux, Ulysse Nardin, and Kering Eyewear branded products.It sells its products through stores and e-commerce sites.As of December 31, 2021, it operated 1,565 stores.


Kering SA sells its products in the Asia-Pacific, Western Europe, North America, Japan, and internationally.The company was formerly known as PPR SA and changed its name to Kering SA in June 2013.Kering SA was founded in 1963 and is based in Paris, France.

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1.b. Last Insights on KER

Breaking News: Kering SA has undergone a restructuring, establishing industry and client divisions within its group platform, providing a unified structure and shared resources across its houses. The company's fair value estimate has been refined to €299.58, with analysts' price targets shifting both higher and lower in recent weeks. Kering's recent performance has been mixed, with a small gain over the past month but weaker returns over the past 3 months and year to date. Analysts are divided on the stock, with some recommending a buy and others a hold or sell, citing various risks and opportunities.

1.c. Company Highlights

2. Kering's Turnaround Gains Momentum

Kering reported revenue of EUR 14.7 billion in 2025, down 10% on a comparable basis, while recurring operating income reached EUR 1.6 billion, corresponding to an 11.1% EBIT margin. The company's EPS came out at EUR 1.21, significantly below analyst estimates of EUR 2.39. Free cash flow amounted to EUR 4.4 billion, including real estate transactions, and net financial debt decreased by EUR 2.5 billion to EUR 8 billion. According to Luca de Meo, "the company has a lot of work to do, but is moving forward with speed, discipline, and determination."

Publication Date: Feb -18

📋 Highlights
  • Strategic Reorganization:: Kering implemented key decisions in 2025, including a partnership with L’Oreal and acquisition of Raselli Franco, to strengthen beauty and jewelry sectors.
  • Operational Efficiency:: Achieved 75 store closures, 8% inventory reduction, and EUR 925M cost savings, reflecting disciplined cost management.
  • Sustainability Leadership:: Maintained CDP Triple A rating for three consecutive years, aligning with its 10-year sustainability strategy.
  • Financial Restructuring:: Free cash flow reached EUR 4.4B, and net debt fell by EUR 2.5B to EUR 8B, improving financial resilience.
  • Brand Performance Contrasts:: Bottega Veneta grew 3% (revenue EUR 1.7B), Gucci declined 19% (revenue EUR 6B), and jewelry division (Boucheron, Pomellato) saw mid-teens to mid-20s growth.

Brand Performance

Gucci's revenue declined 19% on a comparable basis to EUR 6 billion, while Saint Laurent's revenue was down 6% to EUR 2.6 billion. In contrast, Bottega Veneta's revenue grew 3% to EUR 1.7 billion, driven by strong leather goods sales and expansion into other categories. The jewelry division, particularly Boucheron, saw robust trends in Q4, with revenue up in the mid-20s on a comparable basis.

Operational Efficiency

Kering has been focusing on operational discipline, reducing its store count by 75 units, and achieving EUR 925 million in cost savings. The company plans to continue streamlining its organization, with a goal of reducing the store footprint by 20% by 2028. Jean-Marc Duplaix noted that the company will prioritize store closures in the Asian market, particularly in Korea, Japan, and China.

Outlook and Valuation

For 2026, Kering expects growth and improved margins across all brands. Analysts estimate revenue growth of 6.8% next year. With a current P/E Ratio of 465.96 and EV/EBITDA of 8.09, the market appears to be pricing in significant growth expectations. The company's ROE stands at 0.49%, and ROIC at 1.2%, indicating room for improvement in profitability. As Kering continues to execute its turnaround plan, the company's focus on operational efficiency, brand desirability, and cost discipline will be crucial in driving future growth.

Financial Health

Kering's net debt stood at EUR 8 billion at year-end, down EUR 2.5 billion versus last year. The company's leverage ratio is expected to be between 1 and 1.5, putting it in a good territory concerning its strong investment-grade rating. With the L'Oreal deal and cash flow generation, Kering expects net debt to decrease substantially.

3. NewsRoom

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Gulf Luxury Retailers Caught Between Calm and Caution as Conflict Grows

Mar -03

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A Look At Kering’s (ENXTPA:KER) Valuation After Recent Share Price Weakness And Mixed Return Profile

Mar -03

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How The Kering (ENXTPA:KER) Investment Story Is Evolving Around A €300 Fair Value

Mar -03

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Kering establishes industry and client divisions in restructuring

Mar -03

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Kering Creates New Centers of Excellence, Makes Key Executive Appointments

Mar -02

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Kering Creates New Centers of Excellence, Makes Key Executive Appointments

Mar -02

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Kering creates two Group centers of excellence to support the performance and growth of its Houses

Mar -02

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Luxury Shares Fall, and Business Will Suffer From Renewed Conflict in the Middle East

Mar -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.18%)

6. Segments

Gucci

Expected Growth: 2.5%

Gucci's 2.5% growth is driven by strong demand for luxury goods, expanding presence in Asia, and successful brand revamp under creative director Alessandro Michele. The brand's digital transformation and strategic investments in e-commerce and social media have also contributed to its growth, attracting younger consumers and increasing brand visibility.

Other Houses

Expected Growth: 1.8%

The growth of Other Houses from Kering SA is driven by strong demand for luxury goods, particularly in Asia. The segment's 1.8% growth is attributed to iconic brands like Alexander McQueen and Bottega Veneta, which have successfully expanded their product lines and distribution channels, attracting new customers while maintaining brand loyalty.

Yves Saint Laurent

Expected Growth: 2.2%

Yves Saint Laurent's growth of 2.2% is driven by strong demand for its high-end fashion and beauty products, strategic retail expansion, and effective digital marketing efforts. The brand's popularity among younger generations and successful collaborations have also contributed to its growth, outpacing the overall luxury market.

Bottega Veneta

Expected Growth: 2.0%

Bottega Veneta's 2.0% growth is driven by strong sales in Asia, particularly in China, and a successful turnaround strategy under creative director Matthieu Blazy. The brand's iconic intrecciato woven leather goods and appealing product assortment have resonated with consumers, while investments in digital marketing and e-commerce have also contributed to growth.

Kering Eyewear and Corporate

Expected Growth: 1.5%

Kering Eyewear's 1.5 growth is driven by strong demand for luxury eyewear, particularly in Asia. Kering SA's diversified portfolio and strategic investments in brands like Gucci and Yves Saint Laurent also contribute to growth. Corporate synergies and operational efficiency improvements further support the segment's expansion.

Eliminations

Expected Growth: 0.5%

Kering SA's eliminations growth of 0.5 is driven by strategic brand portfolio optimization, efficiency in supply chain management, and elimination of underperforming assets, allowing the company to focus on high-growth brands like Gucci and Yves Saint Laurent, leading to improved profitability and resource allocation.

7. Detailed Products

Gucci Handbags

Luxury handbags designed by Gucci's creative directors, offering a range of styles, materials, and colors.

Yves Saint Laurent Ready-to-Wear

High-end clothing and accessories designed by Yves Saint Laurent's creative directors, offering a range of styles, fabrics, and colors.

Bottega Veneta Leather Goods

Luxury leather goods, including handbags, wallets, and accessories, designed by Bottega Veneta's creative directors, known for their signature intrecciato woven leather.

Alexander McQueen Women's Shoes

High-end women's shoes designed by Alexander McQueen's creative directors, offering a range of styles, materials, and colors.

Pomellato Jewelry

High-end jewelry designed by Pomellato's creative directors, offering a range of styles, materials, and colors.

Qeelin Fine Jewelry

High-end fine jewelry designed by Qeelin's creative directors, offering a range of styles, materials, and colors.

Christopher Kane Ready-to-Wear

High-end clothing and accessories designed by Christopher Kane's creative directors, offering a range of styles, fabrics, and colors.

Tomas Maier Accessories

Luxury accessories, including handbags, wallets, and small leather goods, designed by Tomas Maier's creative directors.

Boucheron High Jewelry

High-end high jewelry designed by Boucheron's creative directors, offering a range of styles, materials, and colors.

Dodo Jewelry

Fashion jewelry designed by Dodo's creative directors, offering a range of styles, materials, and colors.

8. Kering SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Kering SA operates in the luxury goods industry, where there are few substitutes for high-end fashion products. However, the rise of fast fashion and second-hand luxury goods may pose a moderate threat.

Bargaining Power Of Customers

Kering SA's customers are mostly high-end consumers who value exclusivity and craftsmanship. They have limited bargaining power due to the unique nature of luxury goods.

Bargaining Power Of Suppliers

Kering SA relies on a network of suppliers for raw materials, manufacturing, and logistics. While suppliers have some bargaining power, Kering's scale and reputation help maintain a balance of power.

Threat Of New Entrants

The luxury goods industry has high barriers to entry, including significant capital requirements, brand recognition, and distribution networks. New entrants are unlikely to pose a significant threat to Kering SA.

Intensity Of Rivalry

The luxury goods industry is highly competitive, with established players like LVMH, Richemont, and Capri Holdings vying for market share. Kering SA faces intense rivalry in terms of product offerings, pricing, and brand reputation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.47%
Debt Cost 4.25%
Equity Weight 42.53%
Equity Cost 8.94%
WACC 6.25%
Leverage 135.14%

11. Quality Control: Kering SA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dior

A-Score: 5.2/10

Value: 5.5

Growth: 6.1

Quality: 5.9

Yield: 3.8

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Inditex

A-Score: 5.2/10

Value: 1.6

Growth: 6.2

Quality: 8.1

Yield: 5.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Hermès

A-Score: 5.1/10

Value: 0.5

Growth: 8.4

Quality: 9.4

Yield: 1.2

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
LVMH

A-Score: 4.7/10

Value: 2.0

Growth: 6.2

Quality: 7.0

Yield: 3.1

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Richemont

A-Score: 4.7/10

Value: 1.1

Growth: 5.6

Quality: 6.9

Yield: 1.9

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Kering

A-Score: 4.0/10

Value: 2.3

Growth: 4.2

Quality: 3.8

Yield: 3.8

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

263.05$

Current Price

263.05$

Potential

-0.00%

Expected Cash-Flows