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Kering
(OTC:PPRUY)
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Rating:53Neutral
Price Target:
$29.00
▼(-23.32% Downside)
Action:Reiterated
Date:02/18/26
The score is held back primarily by weakened financial performance (material revenue decline and profitability reset) and constrained flexibility from elevated leverage during an earnings downturn. Offsetting this, the earnings call outlined credible operational and balance-sheet actions with 2026 improvement guidance, while technicals appear neutral and valuation is a significant negative due to the very high P/E.
Positive Factors
Strong brand portfolio with resilient maisons
Kering’s mix of large, iconic maisons and faster-growing niches provides durable revenue diversification. Resilience at Bottega, Saint Laurent and Kering Eyewear demonstrates that select houses can offset Gucci volatility, supporting steadier group cash flows and recovery potential over the next 2–6 months.
Negative Factors
Material revenue decline and margin compression
A pronounced top-line decline and a one-third drop in recurring operating income indicate weakened pricing, mix and demand. Persistent revenue and margin pressure can erode operating leverage, constrain reinvestment capacity, and prolong the earnings recovery absent sustained improvement in key markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong brand portfolio with resilient maisons
Kering’s mix of large, iconic maisons and faster-growing niches provides durable revenue diversification. Resilience at Bottega, Saint Laurent and Kering Eyewear demonstrates that select houses can offset Gucci volatility, supporting steadier group cash flows and recovery potential over the next 2–6 months.
Read all positive factors
Kering (PPRUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.24B
Dividend Yield1.91%
Average Volume (3M)121.20K
Price to Earnings (P/E)472.2
Beta (1Y)1.08
Revenue Growth-11.00%
EPS Growth-96.01%
CountryUS
Employees45,562
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.07
Shares Outstanding1,234,207,800
10 Day Avg. Volume165,748
30 Day Avg. Volume121,198
Financial Highlights & Ratios
PEG Ratio-5.42
Price to Book (P/B)2.48
Price to Sales (P/S)2.59
P/FCF Ratio22.61
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue3.54
Enterprise Value/Gross Profit4.87
Enterprise Value/Ebitda8.87
Forecast
1Y Price Target
$20.20Price Target Upside-46.59% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.75
Revenue Forecast (FY)$16.97B
Kering Business Overview & Revenue Model
Company Description
Kering SA manages the development of a collection of renowned houses in fashion, leather goods, and jewelry in the Asia Pacific, Western Europe, North America, Japan, and internationally. The company provides ready-to-wear products, accessories, a...
How the Company Makes Money
Kering makes money mainly by selling luxury goods and services through its brand portfolio. The largest revenue stream is the sale of finished products—particularly fashion and leather goods—generated by its major brands (including Gucci and Saint...
Kering Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call balanced clear evidence of a difficult 2025 — double-digit top-line declines for the group and significant EBIT compression — with decisive strategic actions and tangible operational improvements. Management highlighted successful cost-savings (EUR 925m), inventory reduction (‑8%), meaningful deleveraging (EUR 2.5bn net debt reduction to EUR 8bn), and early sequential sales momentum (Q4 at -3% comps, AUR up). Select houses (Bottega, Saint Laurent, Kering Eyewear) and the jewelry division showed resilience and growth. However, material challenges remain (notably Gucci’s large revenue decline, wholesale contraction, losses at some brands, and sizeable nonrecurring charges). Overall, the narrative is constructive about the turnaround path but the near-term financials remain challenged.Positive Updates
Cost Savings and OpEx Reduction
Delivered EUR 925 million in cost savings in 2025, reducing OpEx base by 9% versus 2024 and >EUR 1 billion OpEx savings over two years, enabling reinvestment in creativity and brand initiatives.
Negative Updates
Top-Line Pressure and Full-Year Revenue Decline
Full-year revenue (ex Kering Beauté) EUR 14.7 billion, down 10% on a comparable basis and down 13% reported; geographic weakness notably Asia Pacific (-16% retail full-year) and Japan (-16% retail full-year).
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Q4-2025 Updates
Positive
Negative
Cost Savings and OpEx Reduction
Delivered EUR 925 million in cost savings in 2025, reducing OpEx base by 9% versus 2024 and >EUR 1 billion OpEx savings over two years, enabling reinvestment in creativity and brand initiatives.
Read all positive updates
Company Guidance
Management reiterated that 2026 should be a year of returning to growth and step‑by‑step margin improvement, built on the 2025 reset: FY25 revenue excl. Kering Beauté €14.7bn (‑10% comparable; Q4 ‑3% comp), recurring operating income €1.6bn (11.1% EBIT margin), free cash flow €4.4bn including real‑estate (€2.3bn excl.), net debt €8.0bn (‑€2.5bn YoY) and €925m of OpEx savings (‑9%). Near‑term actions guided include further inventory reductions (inventories ‑8% in 2025), a minimum of 100 net store closures in 2026 (75 net closed in 2025; mid‑term footprint target ~‑20%), prioritized CapEx (€0.8bn in 2025; 5.4% of sales), and balance‑sheet strengthening via the L’Oréal Beaute proceeds (expected to drive leverage to ~1.0–1.5x), with a 2026 tax rate ~33% normalizing to ~27–28% in 2–3 years. The Board also proposed a €3/share dividend plus a €1/share exceptional distribution tied to the Beaute disposal; brand metrics cited included Gucci €6.0bn revenue (‑19% comp; 16.1% EBIT margin), Saint Laurent €2.6bn (‑6% comp; 20% margin), Bottega €1.7bn (+3% comp; 15.6% margin) and Kering Eyewear ~€1.6bn revenue (15.8% margin).Kering Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.10B | 17.19B | 19.57B | 20.35B | 17.65B |
| Gross Profit | 7.57B | 12.68B | 14.93B | 15.20B | 13.07B |
| EBITDA | 3.53B | 4.67B | 6.57B | 6.98B | 6.47B |
| Net Income | 72.00M | 1.13B | 2.98B | 3.61B | 3.18B |
Balance Sheet | |||||
| Total Assets | 41.18B | 43.35B | 41.37B | 33.94B | 31.07B |
| Cash, Cash Equivalents and Short-Term Investments | 4.42B | 3.56B | 3.92B | 4.34B | 5.25B |
| Total Debt | 18.56B | 20.14B | 17.16B | 11.19B | 9.59B |
| Total Liabilities | 25.67B | 27.62B | 25.36B | 19.16B | 17.33B |
| Stockholders Equity | 14.71B | 14.90B | 15.21B | 14.00B | 13.35B |
Cash Flow | |||||
| Free Cash Flow | 1.62B | 1.40B | 1.85B | 3.21B | 3.94B |
| Operating Cash Flow | 2.41B | 4.71B | 4.46B | 4.28B | 4.88B |
| Investing Cash Flow | 1.12B | -3.19B | -7.30B | -2.77B | -451.50M |
| Financing Cash Flow | -2.65B | -1.90B | 2.38B | -2.14B | -2.93B |
Kering Technical Analysis
Negative
37.82
Price Trends
28.81
Positive
29.70
Negative
32.08
Negative
Market Momentum
0.02
Positive
46.10
Neutral
12.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPRUY, the sentiment is Negative. The current price of 37.82 is above the 20-day moving average (MA) of 29.86, above the 50-day MA of 28.81, and above the 200-day MA of 32.08, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 12.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPRUY.
Kering Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $29.14B | 43.97 | 106.44% | 1.16% | 14.13% | -15.62% | |
67 Neutral | $3.31B | 11.65 | 16.01% | 1.46% | 1.35% | 661.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $1.40B | -19.98 | 17.42% | ― | 17.16% | -48.49% | |
53 Neutral | $38.24B | 472.19 | 0.49% | 1.91% | -11.00% | -96.01% | |
51 Neutral | $2.18B | 17.14 | 102.24% | ― | -21.79% | ― | |
41 Neutral | $172.07M | -1.93 | 120.31% | ― | -23.87% | -27.19% |
* Consumer Cyclical Sector Average
PPRUY
Kering
28.90
6.10
26.75%
TPR
Tapestry
144.21
52.92
57.96%
CPRI
Capri Holdings
18.96
0.46
2.49%
SIG
Signet Jewelers
84.12
3.59
4.45%
REAL
RealReal
11.58
6.34
120.99%
LANV
Lanvin Group Holdings
1.37
-0.91
-39.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.