Kering Stock Rises 9% on Strong Recovery at Gucci Boosting Investor Confidence

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Oct 23 2025

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Source: CNBC

Kering's Financial Performance: Kering, the owner of Gucci, reported a narrower sales decline of 5% in Q3, with total sales reaching 3.42 billion euros, and a significant improvement in Gucci's performance compared to the previous quarter.
CEO's Commitment to Turnaround: CEO Luca de Meo emphasized the company's dedication to improving performance, highlighting recent strategic decisions, including the sale of its beauty unit to L'Oreal for $4.7 billion to focus on core fashion brands.
Analyst Reactions and Stock Performance: Following the earnings report, Deutsche Bank raised Kering's price target, noting improved sales across major brands, while UBS analysts acknowledged the overall positive sector context and initial success of management's turnaround efforts.
Challenges Ahead: Despite a 33% surge in Kering's shares this year, concerns remain about stagnating sales, price increases, and trade tensions affecting the luxury market, alongside unique challenges faced by Kering, including leadership changes and weakening demand for key brands.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.