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Kering
(OTC:PPRUY)
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Rating:50Neutral
Price Target:
$24.00
▼(-23.18% Downside)
Action:Reiterated
Date:07/28/26
The score is held back primarily by weakened financial performance (sharp profit deterioration and leverage during a downturn) and bearish technical positioning (below major moving averages). Valuation is also a significant drag due to the extremely high P/E, partly cushioned by a modest dividend yield. The earnings call adds support via reiterated 2026 improvement guidance, strong free cash flow, and deleveraging progress, but brand and macro headwinds keep the outlook cautious.
Positive Factors
Cash generation and deleveraging
Strong underlying free cash flow gives Kering internal funding for brand investment while reducing dependence on external financing. The sharp debt reduction improves resilience and financial flexibility, helping management pursue its transformation despite uneven luxury demand.
Negative Factors
Sharp profitability deterioration
The earnings reset shows that Kering’s recent profitability is substantially below its 2021–2023 profile. Weaker revenue and operating leverage reduce the earnings cushion available for brand investment, making the recovery more dependent on successful execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and deleveraging
Strong underlying free cash flow gives Kering internal funding for brand investment while reducing dependence on external financing. The sharp debt reduction improves resilience and financial flexibility, helping management pursue its transformation despite uneven luxury demand.
Read all positive factors
Kering (PPRUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.79B
Dividend Yield2.46%
Average Volume (3M)98.44K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth-2.62%
EPS Growth-131.28%
CountryUS
Employees43,731
SectorGeneral
Sector StrengthN/A
IndustryLuxury Goods
Share Statistics
EPS (TTM)-0.16
Shares Outstanding1,234,207,800
10 Day Avg. Volume70,893
30 Day Avg. Volume98,442
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 Cap1.56
Enterprise Value/Revenue3.23
Enterprise Value/Gross Profit4.49
Enterprise Value/Ebitda7.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.71
Revenue Forecast (FY)$16.42B
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 primarily makes money by selling luxury goods from its brand portfolio, with revenue generated across multiple product categories and distribution channels. (1) Product-led revenue: The largest share of revenue typically comes from luxury f...
Kering Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call was constructive: management reported tangible progress from their ReconKering actions — return to Q2 growth, margin expansion, strong free cash flow and a large reduction in net debt. High‑quality growth engines (Jewelry and Eyewear) performed exceptionally and operational discipline (OpEx reductions, inventory improvements, store optimization) is taking hold. However, notable challenges remain: FX drag, ongoing weakness in Mainland China, non‑recurring charges and transitional issues at specific houses (Gucci still down in H1 despite sequential improvement; Balenciaga and McQueen undergoing transitions). Overall the positives (cash, margins, tangible operational wins and strong category performance) outweigh the negatives, while management remains cautiously realistic about short‑term volatility.Positive Updates
Return to Growth in Q2
Group revenue for H1 was €7.2bn (up 1% on a comparable basis). After a stable Q1, comparable growth accelerated to +2% in Q2 — the first quarter of growth in 12 quarters — achieved while executing store optimization (84 net closures in H1).
Negative Updates
Reported Revenue Drag from FX
H1 revenue was down 3% on a reported basis, with foreign exchange weighing on reported revenue by close to 4 percentage points (largely concentrated in Q1); the Q2 FX drag eased to around 1 point.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Growth in Q2
Group revenue for H1 was €7.2bn (up 1% on a comparable basis). After a stable Q1, comparable growth accelerated to +2% in Q2 — the first quarter of growth in 12 quarters — achieved while executing store optimization (84 net closures in H1).
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of "growth and improved profitability versus 2025," confirming H2 recurring operating margin should be higher than H1’s 12.8% (H1 recurring operating income €921m), and flagged several quantified priorities: at least 100 net store closures in 2026 (part of a 250‑store plan to 2028), a €1.0bn reduction target for Fashion & Leather Goods inventory by year‑end, and a full‑year OpEx decline (H1 OpEx -5%). Capital allocation will prioritize deleveraging and investment in the houses (net financial debt €3.3bn at 30 June; net debt/adjusted EBITDA 1.4x), selective bolt‑on M&A, and dividends (€490m paid H1; no share buyback planned), with tax rate expected to normalize to ~27–28% over 2–3 years and continued strong cash generation (H1 free cash flow €2.6bn; €1.8bn excl. real estate/Gucci Beauté proceeds, +68% YoY) to support the plan.Kering Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.40B | 14.10B | 17.19B | 19.57B | 20.35B | 17.65B |
| Gross Profit | 10.36B | 7.57B | 12.68B | 14.93B | 15.20B | 13.07B |
| EBITDA | 6.38B | 3.61B | 4.67B | 6.57B | 6.98B | 6.47B |
| Net Income | -206.27M | 72.00M | 1.13B | 2.98B | 3.61B | 3.18B |
Balance Sheet | ||||||
| Total Assets | 39.82B | 41.18B | 43.35B | 41.37B | 33.94B | 31.07B |
| Cash, Cash Equivalents and Short-Term Investments | 8.48B | 4.42B | 3.56B | 3.92B | 4.34B | 5.25B |
| Total Debt | 17.72B | 18.56B | 20.14B | 17.16B | 11.19B | 9.59B |
| Total Liabilities | 24.46B | 25.67B | 27.62B | 25.36B | 19.16B | 17.33B |
| Stockholders Equity | 14.48B | 14.71B | 14.90B | 15.21B | 14.00B | 13.35B |
Cash Flow | ||||||
| Free Cash Flow | 2.65B | 1.62B | 1.40B | 1.85B | 3.21B | 3.94B |
| Operating Cash Flow | 3.51B | 2.41B | 4.71B | 4.46B | 4.28B | 4.88B |
| Investing Cash Flow | 4.21B | 1.12B | -3.19B | -7.30B | -2.77B | -451.50M |
| Financing Cash Flow | -3.25B | -2.65B | -1.90B | 2.38B | -2.14B | -2.93B |
Kering Technical Analysis
Negative
31.24
Price Trends
26.75
Negative
28.36
Negative
29.38
Negative
Market Momentum
-0.75
Negative
38.76
Neutral
74.31
Neutral
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 31.24 is above the 20-day moving average (MA) of 24.23, above the 50-day MA of 26.75, and above the 200-day MA of 29.38, indicating a bearish trend. The MACD of -0.75 indicates Negative momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPRUY.
Kering Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $22.66B | 23.66 | 35.64% | 1.00% | 14.68% | 26.22% | |
63 Neutral | $23.33B | 15.38 | 262.81% | 1.44% | 14.17% | 956.15% | |
57 Neutral | $1.33B | -15.19 | 21.10% | ― | 17.73% | -112.49% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $5.41B | 40.08 | 7.60% | 1.06% | 10.78% | -15.63% | |
53 Neutral | $3.99B | -23.47 | -3.49% | 0.18% | 1.64% | -140.84% | |
50 Neutral | $29.79B | -125.00 | -1.46% | 2.46% | -2.62% | -131.28% |
* General Sector Average
PPRUY
Kering
23.91
-15.92
-39.97%
TPR
Tapestry
113.92
0.48
0.42%
PVH
PVH
84.26
-2.23
-2.58%
RL
Ralph Lauren
381.95
49.19
14.78%
REAL
RealReal
10.48
-1.57
-13.03%
ZGN
Ermenegildo Zegna
13.85
3.53
34.19%
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.