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Kering Sa Unsponsored ADR (PPRUY)
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Kering (PPRUY) AI Stock Analysis

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PPRUY

Kering

(OTC:PPRUY)

Rating:70Neutral
Price Target:
$27.00
▲(2.78% Upside)
Kering's overall stock score reflects a solid financial performance with strong profitability and cash flow generation, despite challenges in revenue growth and rising leverage. The technical analysis suggests a positive trend, though the high P/E ratio indicates potential overvaluation. The earnings call highlighted both operational strengths and significant revenue challenges, particularly at Gucci and in the Asia Pacific region.

Kering (PPRUY) vs. SPDR S&P 500 ETF (SPY)

Kering Business Overview & Revenue Model

Company DescriptionKering 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 MoneyKering generates revenue primarily through the sale of luxury goods across its diverse brand portfolio. The company's key revenue streams include retail sales from directly operated stores, online sales, and wholesale distribution channels. Kering's luxury brands offer a wide range of products, including apparel, handbags, shoes, accessories, and jewelry, all of which contribute to the company's overall earnings. Additionally, Kering benefits from strategic partnerships and collaborations that enhance brand visibility and market reach. Kering's financial performance is also influenced by its ability to maintain brand desirability, expand into emerging markets, and adapt to changing consumer preferences while focusing on sustainable practices.

Kering Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were significant achievements in cost control, free cash flow generation, and specific brand resilience, the company faced substantial challenges with declining overall revenues, particularly at Gucci and in the Asia Pacific region, alongside wholesale weaknesses. The efforts in deleveraging and operational optimization were offset by macroeconomic headwinds and brand-specific difficulties.
Q2-2025 Updates
Positive Updates
Strong Free Cash Flow
Kering generated EUR 2.4 billion in free cash flow from operations in H1 2025, despite challenging conditions.
Successful Cost Optimization
OpEx was down 11% year-on-year, amounting to savings of more than EUR 550 million, with substantial contributions from fixed costs.
Debt Reduction
Net financial debt was reduced by EUR 1 billion compared to year-end 2024, aligning with the company's deleveraging trajectory.
Bottega Veneta Resilience
Bottega Veneta achieved a 2% comparable revenue increase in H1 2025, outperforming in North America with an 18% growth.
Kering Eyewear and Beaute Growth
Kering Eyewear & Beaute saw a 9% increase in royalties and other revenue, with Creed women's fragrances performing well.
Negative Updates
Significant Revenue Decline
Revenue was down 16% reported and 15% comparable in H1 2025, with a 3 percentage point FX headwind in Q2.
Gucci Revenue Challenges
Gucci's revenue fell by 25% comparable in H1 2025, with retail down 23%, despite some improvement in North America and Asia Pacific.
Wholesale Weakness
Wholesale revenue was down 25% in H1 2025, with a 28% decline in Q2, due to channel downsizing and lower orders.
Asia Pacific Decline
Asia Pacific revenue fell 19% comparable in Q2, despite a sequential improvement, due to weakened tourism spending.
High Operating Loss in Other Houses
The Other Houses segment posted a recurring operating loss of EUR 29 million in H1, largely due to challenges at Alexander McQueen.
Company Guidance
In the first half of 2025, Kering reported revenue of EUR 7.6 billion and a recurring operating income of EUR 969 million, reflecting a 12.8% margin, which was a 470 basis point dilution compared to the previous year. Free cash flow from operations amounted to EUR 2.4 billion after EUR 431 million in capital expenditures. The company's net financial debt stood at EUR 9.5 billion, a decrease of EUR 1 billion since year-end. Kering's revenue declined by 16% on a reported basis and 15% on a comparable basis, with a negative foreign exchange impact of one percentage point in the first half. The retail segment, which accounted for 73% of revenue, was down 16% comparable, while wholesale and other revenue, comprising 27% of total revenue, decreased by 10% comparable. The company implemented a network optimization plan, reducing its store count by 41 units, excluding 17 new stores in China. Kering's strategic focus remains on enhancing operational efficiency and brand perception, as demonstrated by its commitment to cost control and talent cultivation initiatives.

Kering Financial Statement Overview

Summary
Kering demonstrates robust profitability with strong gross and EBIT margins and a stable financial position. However, challenges include rising debt levels and fluctuating revenue growth, which could pose risks. The decline in free cash flow also warrants attention, emphasizing the need for improved revenue growth and leverage management.
Income Statement
75
Positive
Kering's income statement shows strong profitability with a consistently high gross profit margin and a solid EBIT margin. However, the revenue growth rate has been fluctuating, with a decline in the latest year, indicating potential challenges in maintaining sales momentum.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position, with a moderate debt-to-equity ratio and a decent equity ratio. However, the increase in total debt over recent years suggests rising leverage, which could pose future risks if not managed carefully.
Cash Flow
65
Positive
Kering's cash flow statement indicates a stable operating cash flow to net income ratio, suggesting efficient cash generation. However, the recent decline in free cash flow growth rate points to potential challenges in sustaining free cash flows, partly due to high capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue17.19B19.57B20.35B17.65B13.10B
Gross Profit12.68B14.93B15.20B13.07B9.51B
EBITDA4.67B6.57B6.98B6.13B4.56B
Net Income1.13B2.98B3.61B3.18B2.15B
Balance Sheet
Total Assets43.35B41.37B33.94B31.07B28.01B
Cash, Cash Equivalents and Short-Term Investments3.56B3.92B4.34B5.25B3.44B
Total Debt20.14B17.16B11.19B9.59B9.26B
Total Liabilities27.62B25.36B19.16B17.33B15.97B
Stockholders Equity14.90B15.21B14.00B13.35B11.82B
Cash Flow
Free Cash Flow1.40B1.85B3.21B3.94B2.10B
Operating Cash Flow4.71B4.46B4.28B4.88B2.89B
Investing Cash Flow-3.19B-7.30B-2.77B-451.50M-196.50M
Financing Cash Flow-1.90B2.38B-2.14B-2.93B-1.62B

Kering Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.27
Price Trends
50DMA
23.71
Positive
100DMA
21.71
Positive
200DMA
23.29
Positive
Market Momentum
MACD
0.64
Negative
RSI
63.36
Neutral
STOCH
99.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPRUY, the sentiment is Positive. The current price of 26.27 is above the 20-day moving average (MA) of 25.12, above the 50-day MA of 23.71, and above the 200-day MA of 23.29, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 99.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPRUY.

Kering Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$3.61B92.452.04%1.39%-3.98%-93.50%
70
Neutral
$32.15B40.494.77%2.56%-14.09%-64.67%
63
Neutral
$706.00M-8.75%7.08%-42.22%
61
Neutral
$17.75B12.51-5.49%3.06%1.43%-14.10%
60
Neutral
$20.49B121.039.76%1.39%5.09%-80.06%
58
Neutral
$871.19M32.94%12.68%62.96%
49
Neutral
$2.54B-142.38%-16.69%-279.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PPRUY
Kering
26.61
-1.85
-6.50%
TPR
Tapestry
100.70
61.09
154.23%
CPRI
Capri Holdings
21.46
-14.42
-40.19%
SIG
Signet Jewelers
87.83
4.87
5.87%
REAL
RealReal
7.63
5.00
190.11%
LUXE
LuxExperience
8.44
4.54
116.41%
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.Date of analysis: Aug 19, 2025