-0.99%
4.99%
22.33%
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-36.64%
-57.53%
-48.29%
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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

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

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.

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.

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.

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.

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%

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

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
271.2$
Current Price
271.2$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

ValueQualityYieldMomentumVolatilityGrowth
Company A-Score: 6.20Peer Group Average: 6.30Leader: 9.30

Peers Group Analysis

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