Market report: Luxury shares profit from Kering figures | EUROtoday

market report

As of: February 10, 2026 1:31 p.m

Gucci proprietor Kering is optimistic in regards to the future. This offers buyers confidence; the posh group’s shares are rising by a double-digit share. This is boosting the sector throughout Europe.

Today, luxurious shares are among the many most sought-after shares on the German and European inventory markets. Tailwind got here from the posh producer Kering, finest recognized for its manufacturers Gucci and Yves Saint Laurent. Kering is making buyers sit up and take discover with quarterly figures that turned out higher than anticipated. At the identical time, the group gave a constructive outlook after lengthy years of disaster.

The inventory then briefly rose in share phrases. On Friday, Kering shares had fallen to their lowest stage since September final yr – in anticipation of the figures. Kering’s constructive share worth improvement is boosting the whole sector in the present day. Hugo Boss shares rose in Germany, LVMH and Hermès in France, and Burberry shares in London.

Positive outlook: development once more

Kering had reported that the French luxurious items group’s gross sales fell by three p.c to three.9 billion euros within the fourth quarter, adjusted for foreign money results. And gross sales of a very powerful model Gucci, which has been shrinking for ten quarters in a row, additionally fell by ten p.c. However, the losses have been smaller than analysts had feared. “The momentum is real – early, fragile, but real,” mentioned former Renault boss de Meo, who was answerable for Kering in his first quarter.

De ‌Meo ‍guarantees development and growing profitability once more for the approaching yr. To flip issues round, the group has already reduce prices and closed 75 boutiques final yr. De Meo introduced that he would enhance funding within the manufacturers and restructure the administration crew to speed up decision-making.

Gucci is in focus

At the middle of the restructuring efforts is the Gucci model, which accounts for round half of the group’s gross sales and two-thirds of its income. Hope rests on the brand new inventive director Demna Gwassalia, who will current his first assortment on the finish of the month. He is anticipated to present the model a transparent inventive route once more after an extended interval of weak spot.

The first merchandise from his pen are scheduled to hit shops within the second quarter. According to CFO Armelle Poulou, Gucci had already seen a slight enchancment in “almost all regions” on the finish of final yr, pushed by new product launches and purse gross sales. The figures for the total yr 2025 underline how pressing the renovation is. The working revenue collapsed to 1.63 billion euros. The group’s working margin fell to eleven p.c. Big rival LVMH had a margin of twenty-two p.c in the identical interval, highlighting the hole between the 2 French luxurious giants.

Analysts are constructive

“Kering is only at the beginning of a multi-year restructuring process, and the results for the 2025 financial year should make clear to investors the direction it is taking,” commented analysts at Deutsche Bank. RBC analysts confirmed a slight additional enchancment for the group. Analysts at Barclays highlighted that gross sales have been higher than anticipated.

UBS confirmed Kering with a “neutral” score and a worth goal of 345 euros. Deutsche Bank votes “Hold” and a worth goal of 300 euros. Citigroup determined equally: “neutral” at 319 euros. JP Morgan is extra skeptical: a confirmed “underweight” score is accompanied by a worth goal of 235 euros.

Overall market: DAX across the 25,000 level mark

The German inventory market is shifting cautiously in the present day – after the bounce over 25,000 factors on Monday. Today the DAX is hovering round this mark.