
AI Spotlight on KER
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.
Market Data
Last Price | 271.2 |
Change Percentage | -0.99% |
Open | 271.75 |
Previous Close | 273.9 |
Market Cap ( Millions) | 33246 |
Volume | 190332 |
Year High | 438.6 |
Year Low | 206.55 |
M A 50 | 246.1 |
M A 200 | 261.85 |
Financial Ratios
FCF Yield | 7.13% |
Dividend Yield | 4.24% |
ROE | 13.93% |
Debt / Equity | 135.14% |
Net Debt / EBIDTA | 335.84% |
Price To Book | 2.23 |
Price Earnings Ratio | 16.02 |
Price To FCF | 14.02 |
Price To sales | 1.8 |
EV / EBITDA | 10.07 |
News
- Feb -18 - Trump tariffs would test pricing power of Europe's luxury goods makers
- Feb -17 - Kering: Monthly statement on the total number of shares and voting rights (February 2025)
- Feb -13 - Popular retailer flags major trend that could save luxury fashion
- Feb -12 - Gucci owner Kering sees 12% revenue drop in 2024
- Feb -12 - Kering SA (PPRUF) Full Year 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...
- Feb -11 - China’s wealthy shoppers have a new mentality—and it’s terrible news for luxury brands like LVMH and Kering who bet billions on their loyalty
- Feb -11 - Kering CEO not too concerned about the impact of tariffs as the Gucci owner says moving production to the U.S. ‘makes no sense’
- Feb -11 - Kering revenue plummets as Gucci losses deepen
- Feb -11 - Kering Shares Gain on Bets the Worst Over for Gucci Owner
- Feb -11 - Shares in Gucci-owner Kering rise on turnaround hopes
- Feb -11 - Gucci sales slump continues as market awaits turnaround
- Feb -11 - Kering: Press release - 2024 Annual Results
- Feb -10 - Kering hoped a big turnaround would save its flagship brands. With Gucci’s creative director gone, is the revival already unraveling?
- Feb -06 - Gucci creative director exits
- Feb -06 - Gucci announces departure of creative director De Sarno just weeks before next Milan runway show
- Feb -06 - Kering: Gucci ends its collaboration with Sabato de Sarno
- Feb -05 - Q4 2024 Simon Property Group Inc Earnings Call
- Jan -31 - Simon Property Announces Conclusion of The Mall Luxury Outlets Buyout
- Jan -30 - Kering sells Italian luxury outlets to U.S. investor Simon
- Jan -30 - Kering: Press release - Kering and Simon announce the sale of The Mall Luxury Outlets
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Gucci
Expected Growth : 6.0 %
What the company do ?
Gucci is a luxury fashion brand from Kering SA, offering high-end clothing, handbags, shoes, and accessories with a rich Italian heritage.
Why we expect these perspectives ?
Gucci's 6.0% growth is driven by successful brand revamp, increased online presence, and strategic pricing. Strong demand in Asia, particularly in China, and a rebound in European markets also contribute to growth. Additionally, the brand's focus on luxury and exclusivity, as well as its ability to balance heritage and modernity, resonate with consumers, driving sales and revenue.
Segment n°2 -> Other Houses
Expected Growth : 3.5 %
What the company do ?
Other Houses from Kering SA refers to the smaller luxury fashion brands owned by Kering, including Pomellato, Dodo, and Qeelin, among others.
Why we expect these perspectives ?
Kering SA's Other Houses segment growth of 3.5% is driven by successful brand revamps, strategic pricing, and targeted marketing efforts. Additionally, the segment benefits from a strong presence in the Asian market, where luxury demand remains robust. Furthermore, the company's focus on e-commerce and omnichannel distribution has also contributed to the segment's growth.
Segment n°3 -> Yves Saint Laurent
Expected Growth : 5.5 %
What the company do ?
Yves Saint Laurent is a French luxury fashion house founded in 1962, acquired by Kering SA in 1999, known for its high-end clothing and accessories.
Why we expect these perspectives ?
Yves Saint Laurent's 5.5% growth is driven by strong brand recognition, successful product launches, and strategic expansion in Asia, particularly in China. The brand's focus on luxury and high-end fashion, combined with effective digital marketing and e-commerce strategies, have contributed to its growth. Additionally, Kering SA's efforts to enhance the brand's omnichannel experience and improve operational efficiency have also supported its growth momentum.
Segment n°4 -> Bottega Veneta
Expected Growth : 4.0 %
What the company do ?
Bottega Veneta is a luxury fashion house from Kering SA, renowned for its iconic intrecciato woven leather goods and sophisticated, understated style.
Why we expect these perspectives ?
Bottega Veneta's 4.0% growth is driven by its strong brand reputation, increased online presence, and strategic expansion in Asia, particularly in China. The brand's focus on luxury leather goods and accessories, as well as its iconic intrecciato woven leather design, continue to appeal to high-end consumers. Additionally, Kering's effective marketing and distribution strategies have contributed to the brand's growth.
Segment n°5 -> Kering Eyewear and Corporate
Expected Growth : 4.5 %
What the company do ?
Kering Eyewear is a luxury eyewear company, and Corporate refers to the headquarters of Kering SA, a multinational corporation specializing in luxury goods.
Why we expect these perspectives ?
Kering Eyewear's 4.5% growth is driven by increasing demand for luxury eyewear, successful brand diversification, and strategic partnerships. Corporate growth is fueled by effective cost management, operational efficiencies, and a strong focus on digital transformation, enabling the company to capitalize on emerging market opportunities.
Segment n°6 -> Eliminations
Expected Growth : 0.0 %
What the company do ?
Eliminations from Kering SA refer to the removal of intercompany transactions and balances between Kering's subsidiaries, ensuring accurate financial reporting.
Why we expect these perspectives ?
Kering SA's stagnant growth is attributed to eliminations, indicating a lack of synergies between its luxury brands, such as Gucci and Yves Saint Laurent, and its sports and lifestyle division, including Puma and Volcom. This suggests inefficient resource allocation, ineffective brand management, and a failure to capitalize on cross-selling opportunities.
Kering Sa Products
Product Range | What is it ? |
---|---|
Gucci Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for men and women |
Yves Saint Laurent Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for men and women |
Bottega Veneta Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for men and women |
Alexander McQueen Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for men and women |
Balenciaga Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for men and women |
Brioni Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for men |
Christopher Kane Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for women |
Tomas Maier Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for men and women |
Stella McCartney Fashion | Luxury fashion brand offering high-end clothing, handbags, shoes, and accessories for women |
Ulysse Nardin Watches | Luxury watch brand offering high-end timepieces for men and women |
Girard-Perregaux Watches | Luxury watch brand offering high-end timepieces for men and women |
JeanRichard Watches | Luxury watch brand offering high-end timepieces for men and women |
Kering SA's Porter Forces
Threat Of Substitutes
Kering SA operates in the luxury goods industry, where substitutes are limited. However, there is a growing trend towards sustainable and affordable fashion, which could pose a threat to the company's high-end brands.
Bargaining Power Of Customers
Kering SA's customers are largely affluent individuals who are loyal to the company's luxury brands. As a result, customers have limited bargaining power.
Bargaining Power Of Suppliers
Kering SA relies on a network of suppliers for raw materials and manufacturing. While the company has some bargaining power, suppliers also have some leverage due to the high demand for luxury goods.
Threat Of New Entrants
The luxury goods industry has high barriers to entry, including significant capital requirements and the need for established brand recognition. As a result, the threat of new entrants is relatively low.
Intensity Of Rivalry
The luxury goods industry is highly competitive, with several established players competing for market share. Kering SA faces intense rivalry from companies such as LVMH and Richemont.
Capital Structure
Value | |
---|---|
Debt Weight | 53.95% |
Debt Cost | 3.95% |
Equity Weight | 46.05% |
Equity Cost | 9.67% |
WACC | 6.58% |
Leverage | 117.15% |
Kering SA : Quality Control
Kering SA passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
MC.PA | LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom … |
CDI.PA | Christian Dior SE, through its subsidiaries, engages in the production, distribution, and retail of fashion and leather goods, wines and spirits, perfumes and cosmetics, and watches and jewelry worldwide. The … |
ITX.MC | Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household textile products through various retail concepts. The company sells its products under … |
CFR.SW | Compagnie Financière Richemont SA engages in the luxury goods business in Europe, the Middle East, Africa, Asia, and the Americas. The company operates through Jewellery Maisons, Specialist Watchmakers, and Online … |
RMS.PA | Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇

Inditex
A-Score
1-Year Total Return ->
🥈

Hermès
A-Score
1-Year Total Return ->
🥉

Dior
A-Score
1-Year Total Return ->
4

Richemont
A-Score
1-Year Total Return ->
5

LVMH
A-Score
1-Year Total Return ->
6
