Published by Global Banking & Finance Review®
Posted on July 30, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleKering shares rose as investors focus on future improvements despite weak earnings. New CEO Luca de Meo aims to revitalize the company.
(Reuters) -Shares in Kering rose on Wednesday with analysts suggesting investors are looking past another weak quarter of earnings at the luxury goods conglomerate towards hopes for a turnaround.
"The market is trying to look forward and anticipate future improvements," Bernstein analyst Luca Solca said, after the Gucci parent reported after Tuesday's market close a 15% drop in quarterly group revenues, falling short of market expectations.
In an attempt to revive declining sales and cut debt, Kering has appointed former Renault chief executive Luca de Meo to head of the whole group from September - the first outsider to run the company controlled by the billionaire French Pinault family.
It also hired Demna as creative director at its crown jewel business Gucci. Demna will present a new fashion show in March, Kering said, with a full collection shown through a presentation format in September.
"The market will likely shift focus to continued cost discipline, the imminent arrival of new CEO Luca de Meo ... and another attempt at relaunching Gucci," said Thomas Chauvet at Citi.
Kering shares, which had lost more than 50% of their value since the beginning of last year, were up about 5% by 0927 GMT, making them the second-best performers among France's blue chips.
Kering's results on Tuesday showed a 25% decline in second-quarter sales at Gucci to 1.46 billion euros ($1.69 billion). However, it said it saw a slight improvement at the brand going into the third quarter.
First-half results showed "early signs of stabilisation at Gucci", UBS analysts said, citing cost control and improvement in retail sales. The analysts added that their estimates would not move down "for the first time in a while."
"Although there is still a lot of uncertainty and work ahead ... (the first half) left us feeling somewhat more positive," they said.
($1 = 0.8657 euros)
(Reporting by Piotr LipinskiEditing by David Holmes)
Kering has appointed former Renault CEO Luca de Meo as the new head of the group and hired Demna as the creative director for Gucci to help revive declining sales.
Kering shares rose about 5% after the earnings report, making them the second-best performers among France's blue chips.
Gucci experienced a 25% decline in second-quarter sales, amounting to 1.46 billion euros ($1.69 billion).
Analysts noted early signs of stabilization at Gucci, citing cost control and improvements in retail sales, although uncertainty remains.
The market appears optimistic, focusing on potential future improvements and the new leadership under CEO Luca de Meo.
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