Kering shares rise after third-quarter sales beat expectations

Shares in the French luxury group Kering rose sharply on the Paris Stock Exchange on Thursday. This followed the release of its third-quarter sales, which, despite a 10 percent decline, surpassed market expectations.

The stock was up sharply by 8.12 percent to 332.35 euros at around 9:25 am CET, in a market that rose by 0.27 percent. “Kering has published even better-than-expected results, against already high expectations,” praised Adam Cochrane, an analyst at Deutsche Bank, in a note.

Kering on Wednesday reported a 10 percent decline in third-quarter revenue to 3.4 billion euros. This figure was above the 3.3 billion euros expected by the analyst consensus compiled by Bloomberg. At constant exchange rates, sales were down 5 percent. “Importantly, this improved sales performance applies to all major brands. As the guidance on gross margin and operating expenses is maintained, this translates favourably into the group's operating profit forecast,” Cochrane pointed out.

Gucci, the group's flagship brand, accounts for 44 percent of third-quarter sales and two-thirds of operating profitability alone, but is failing to recover. In the third quarter, its sales fell by 18 percent to 1.3 billion euros. However, this is an improvement compared to the first and second quarters, when Gucci's revenue plunged by 24 percent and 27 percent, respectively. “Regarding Gucci in particular, the improvement was driven by the leather goods category, where handbag ranges have been refreshed over the last 18 months. These lines should benefit from a continuity effect during the ready-to-wear launches inspired by Demna Gvasalia in the first half of 2026,” noted Cochrane.

Gvasalia took the helm of the Italian brand in July. The group expects “a year-over-year decline in fourth-quarter sales of the same magnitude as in the third quarter,” its chief financial officer, Armelle Poulou, said on Wednesday during a call with analysts. For analysts, this means Kering is expected to “maintain the edge” over market expectations, according to Cochrane.

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