Kering (PPRUY) AI Stock Analysis

• Market Cap: $32.98B
• Dividend Yield: 1.91%
• Average Volume (3M): 33.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -14.09%
• EPS Growth: -64.67%
• Country: US
• Employees: 44,627
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.15
• Shares Outstanding: 1,234,207,800
• 10 Day Avg. Volume: 23,234
• 30 Day Avg. Volume: 33,189
• PEG Ratio: -5.42
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 22.61
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 8.19
• 1Y Price Target: $22.00
• Price Target Upside: -41.83% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): $17.56B

• Rating: 53 Neutral
• Price Target: $27.00 ▼(-28.61% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 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

Portfolio Diversification & Resilient Houses

Kering's diversified brand mix and strong segments (notably Bottega, Saint Laurent and Kering Eyewear) reduce reliance on any single house. Durable revenue and margin contributions from multiple maisons and eyewear create structural resilience and a platform to reallocate investment into higher-return areas.

Cost Savings and Retail Optimization

Material OpEx savings, targeted store closures and inventory/CapEx discipline materially shrink the cost base and working capital needs. These structural actions improve long-term margin sustainability, enable reinvestment in creativity, and raise returns on a smaller, higher-quality retail footprint.

Cash Generation and Deleveraging Path

Positive free cash flow and meaningful net debt reduction show the group's ability to self-fund repairs and distributions. The planned Beaute disposal and continued FCF provide a durable path to materially lower leverage, restoring financial flexibility and capacity for strategic investment over the medium term.

Negative Factors

Top-line Pressure and Regional Weakness

Sustained revenue declines, especially in key APAC markets, erode scale advantages and reduce pricing leverage. Prolonged top-line weakness can impair long-term brand investment and slow margin recovery, meaning restored growth may take multiple quarters and require continued restructuring to regain prior momentum.

Elevated Leverage and Debt Concentration

A balance sheet where debt exceeds equity constrains strategic optionality during a profit downturn. High leverage raises refinancing and interest risks, limits M&A or growth funding without further asset sales, and makes the group more sensitive to macro shocks until the targeted deleveraging is completed.

Profitability Deterioration and Weaker Cash Conversion

Sharp margin compression and lower operating cash flow indicate weaker operating leverage and poorer conversion of sales into cash. This structural earnings hit reduces reinvestment capacity and slows deleveraging, requiring sustained margin recovery initiatives to restore long-term earnings power and cash resilience.

Kering Business Overview & Revenue Model

Company Description

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories. The company offers shoes; leather goods, including handbags and wallets, purses, and other leather products; eyewear, textile accessories, etc.; and jewelry and watches, as well as ready-to-wear products for men and women. It also provides perfumes and cosmetics. The company provides Gucci, Saint Laurent, Bottega Veneta, Alexander McQueen, Balenciaga, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Girard-Perregaux, Ulysse Nardin, and Kering Eyewear branded products. It sells its products through stores and e-commerce sites. As of December 31, 2021, it operated 1,565 stores. Kering SA sells its products in the Asia-Pacific, Western Europe, North America, Japan, and internationally. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.

How the Company Makes Money

Kering makes money primarily by selling luxury goods under its brands and capturing the margin between production/merchandising costs and premium retail pricing. Its largest revenue stream is the sale of fashion and leather goods (e.g., handbags, small leather goods, ready-to-wear, shoes, and accessories) through directly operated stores and brand e-commerce sites, where Kering typically earns the full retail revenue and retains greater control over pricing, inventory, and customer experience. A secondary revenue stream comes from wholesale and franchise arrangements, where Kering sells products to selected department stores, specialty retailers, and certain franchised locations; this generally yields lower per-unit revenue than direct retail but can expand reach and manage inventory flow. Kering also earns revenue from jewelry and watches via its jewelry maisons through both retail and wholesale channels, and from its eyewear business (Kering Eyewear), which designs, develops, and distributes luxury eyewear and typically monetizes through wholesale distribution of frames and sunglasses to optical retailers and other points of sale (alongside any direct-to-consumer channels operated by the brands). Additional earnings can include licensing income and other brand-related services where applicable; if any brand-specific licensing terms or material partnerships are not publicly detailed in the provided context, they are null.

Kering Financial Statement Overview

Summary

Income statement is the key drag (sharp revenue decline and significant net income compression versus 2021–2023), while cash flow remains positive and provides some cushion despite weaker operating cash flow versus 2024. The balance sheet is workable but meaningfully levered (debt exceeding equity), which reduces flexibility during the downturn.

Income Statement

Profitability has deteriorated sharply: revenue fell materially in 2025 (vs. 2024) and margins compressed meaningfully, with net income dropping to a very low level versus prior years. While gross margin remains positive, the multi-year trajectory shows weakening operating leverage and a significant step-down from the strong 2021–2023 profitability profile, raising concerns about near-term earnings stability.

Balance Sheet

The balance sheet is moderately levered, with debt consistently exceeding equity (debt-to-equity above 1 in 2023–2025). Total debt increased versus 2022 and remains elevated, reducing flexibility if the profit downturn persists. Offsetting this, equity is still sizable and assets have been broadly stable, suggesting adequate scale—but leverage is a clear constraint relative to the company’s recent earnings volatility.

Cash Flow

Cash generation remains a relative support: operating cash flow and free cash flow stayed positive in 2025 and free cash flow grew versus 2024. However, operating cash flow fell sharply versus 2024 and the conversion of earnings into cash looks weaker than in earlier years, indicating less consistent cash-producing strength through the downturn.

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

• Technical Analysis Sentiment: Negative
• Last Price: 37.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 30.64, above the 50-day MA of 32.07, and above the 200-day MA of 30.29, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 28.21 is Positive, neither overbought nor oversold. The STOCH value of 1.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPRUY.

Kering Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPR	67 Neutral	$28.91B	11.94	63.26%	1.16%	8.14%	-65.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PPRUY	53 Neutral	$32.98B	―	0.49%	1.91%	-14.09%	-64.67%
CPRI	51 Neutral	$2.21B	6.45	-244.66%	―	-17.66%	-223.06%
SIG	51 Neutral	$3.64B	―	―	1.46%	-0.40%	-68.99%
REAL	46 Neutral	$1.10B	-108.42	11.34%	―	14.30%	23.73%
LANV	42 Neutral	$202.31M	-1.49	404.88%	―	-23.54%	-49.41%