Kering (KER.FR) reported disappointing first-quarter 2026 results, with revenue falling 6.2% year-over-year to €3.57 billion, leading to a more than 10% drop in its share price on the Paris Stock Exchange. The decline was primarily driven by a significant slump in Gucci’s performance, which saw a 14.3% revenue decrease, exacerbated by a slow recovery in the crucial Chinese market. While North America showed resilience with high single-digit growth, the overall outlook remains bleak, particularly due to the ongoing conflict in the Middle East affecting tourism and retail sales.
Jewelry and eyewear emerged as bright spots, with Kering Jewelry achieving record quarterly revenue of €269 million, up 22% on a like-for-like basis. However, analysts are focused on the upcoming “ReconKering” strategy presentation from new CEO Luca de Meo, which aims to address Gucci’s challenges and restore investor confidence.
Market professionals should monitor Kering’s share price closely, particularly as it trades below key moving averages, indicating continued selling pressure. A sustained move above the EMA(200) and EMA(100) convergence around 266-270 could signal a potential turnaround in sentiment.
Source: xtb.com