{"id":44582,"date":"2025-10-23T11:35:03","date_gmt":"2025-10-23T11:35:03","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/23\/kering-shares-surge-on-gucci-revival-is-a-turnaround-finally-in-sight\/"},"modified":"2025-10-23T11:35:03","modified_gmt":"2025-10-23T11:35:03","slug":"kering-shares-surge-on-gucci-revival-is-a-turnaround-finally-in-sight","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/23\/kering-shares-surge-on-gucci-revival-is-a-turnaround-finally-in-sight\/","title":{"rendered":"Kering shares surge on Gucci revival: is a turnaround finally in sight?"},"content":{"rendered":"
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Shares in Gucci-owner Kering surged on Thursday after the French luxury group reported better-than-expected sales at its flagship brand, lifting optimism that a long-awaited turnaround may be taking hold.<\/p>\n

The Paris-listed stock jumped as much as 9.2% to 346.75 euros in early trading before paring gains slightly to trade up 8.3% at 11:02 a.m. <\/p>\n

The rally extends a strong year-to-date performance, with Kering\u2019s shares up more than 45% in 2025.<\/p>\n

The latest boost comes as investors continue to back CEO Luca de Meo\u2019s restructuring plan for the group. <\/p>\n

Since Kering\u2019s chairman and controlling shareholder, Fran\u00e7ois-Henri Pinault, announced in June that De Meo would take over as CEO, shares have nearly doubled in value.<\/p>\n

<\/figure>\n

Source<\/a>: Reuters<\/em> <\/p>\n

Gucci leads an encouraging quarter for the group<\/h2>\n

Kering reported revenue of 3.42 billion euros ($3.97 billion) for the quarter ended September, ahead of the 3.32 billion euros expected by analysts polled by Visible Alpha. <\/p>\n

Gucci, the group\u2019s biggest and most closely watched brand, brought in 1.34 billion euros\u2014slightly above forecasts of 1.33 billion euros.<\/p>\n

While overall sales were still down 10% year-on-year, the pace of decline was shallower than in previous quarters, signalling that the group may be stabilising after a turbulent period.<\/p>\n

\u201cThere is a lot to like in the Kering story and in these results,\u201d Deutsche Bank analysts said, highlighting \u201cpositive signals\u201d from Gucci, including the strong performance of new handbag lines.<\/p>\n

De Meo\u2019s rapid restructuring wins investor confidence<\/h2>\n

Luca de Meo, formerly CEO of Renault and an auto industry veteran, took the helm at Kering earlier this year despite having no previous experience in luxury fashion. <\/p>\n

His appointment came as Gucci\u2019s growth faltered and investor confidence wavered.<\/p>\n

Since then, De Meo has moved quickly to refresh the company\u2019s leadership and creative direction. <\/p>\n

He has installed a new CEO at Gucci and appointed Denma Gvasalia as artistic director\u2014a creative move that has been well received by the fashion industry.<\/p>\n

\u201cWe are working relentlessly on our turnaround, as shown by our recent decisions,\u201d De Meo told investors after the earnings release.<\/p>\n

Analysts at RBC Capital Markets described the quarter as \u201can encouraging first step toward revenue stabilization, more importantly for the Gucci brand.\u201d<\/p>\n

Analysts see early signs of recovery but urge caution<\/h2>\n

Citi analysts noted a \u201cnoticeable lack of earnings downgrades for the first time in over three years,\u201d suggesting that sentiment may be turning. <\/p>\n

However, they cautioned that they \u201cwould not chase\u201d what they called a \u201cFOMO rally\u201d until Kering unveils its full-year results and new strategic plan, expected early next year.<\/p>\n

AlphaValue analyst Jie Zhang said the third-quarter results indicate that Kering \u201cis regaining strength\u201d and provides \u201cbetter visibility\u201d for 2026.<\/p>\n

\u201cAlthough the road to full recovery remains long, the quarter suggests the group has reached a point of stabilisation and entered an early phase of recovery,\u201d Zhang said.<\/p>\n

UBS analysts echoed the sentiment, noting that Kering\u2019s performance \u201csurprised positively with a beat across all brands,\u201d though they maintained a neutral rating on the stock. <\/p>\n

They cautioned that it remains unclear whether the group\u2019s improvement reflects a broader luxury rebound or internal restructuring momentum.<\/p>\n

Adding to the positive sentiment, Kering recently struck a $4.7 billion deal to sell its cosmetics and fragrance brands to L\u2019Or\u00e9al<\/a>. <\/p>\n

The divestment marks another step in De Meo\u2019s strategy to streamline operations and focus on core fashion and leather goods.<\/p>\n

Earlier this year, Kering\u2019s shares had languished as investors grew wary of Gucci\u2019s slowdown, even as labels like Bottega Veneta performed steadily. <\/p>\n

The latest quarterly results and portfolio moves have begun to shift that narrative.<\/p>\n

Citi\u2019s Thomas Chauvet said investors are \u201cleaning into hopes of profound organisational and strategic changes\u201d under De Meo.<\/p>\n

\u201cThe hope trade will likely continue,\u201d he wrote, suggesting that investor enthusiasm may persist ahead of Kering\u2019s strategic update next year.<\/p>\n

The post Kering shares surge on Gucci revival: is a turnaround finally in sight?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Gucci-owner Kering surged on Thursday after the French luxury group reported better-than-expected sales at its flagship brand, lifting optimism that a long-awaited turnaround may be taking hold. The Paris-listed stock jumped as much as 9.2% to 346.75 euros in early trading before paring gains slightly to trade up 8.3% at 11:02 a.m. The <\/p>\n","protected":false},"author":1,"featured_media":44583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-44582","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44582"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44583"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}