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Kering (PPRUY)
OTHER OTC:PPRUY
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Kering
(OTC:PPRUY)
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Rating:70Neutral
Price Target:
$27.00
▼(-25.25% Downside)
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)
Market Cap
$44.25B
Dividend Yield1.86%
Average Volume (3M)7.33K
Price to Earnings (P/E)55.8
Beta (1Y)1.03
Revenue Growth-14.09%
EPS Growth-64.67%
CountryUS
Employees44,627
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.44
Shares Outstanding1,234,207,800
10 Day Avg. Volume13,860
30 Day Avg. Volume7,325
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.96
Price to Sales (P/S)1.70
P/FCF Ratio20.83
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.91
Enterprise Value/Gross Profit3.99
Enterprise Value/Ebitda11.41
Forecast
1Y Price Target
$18.50Price Target Upside-48.78% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
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 high-end fashion and luxury goods, which includes ready-to-wear apparel, leather goods, and accessories. The company's revenue model is based on direct sales through its own retail network, e-commerce platforms, and wholesale distribution to select retailers. Key revenue streams include flagship store sales, online sales, and partnerships with high-end department stores. Additionally, Kering benefits from its strong brand equity and the growing global demand for luxury products, which allows for premium pricing. Strategic collaborations and limited-edition releases also contribute to its earnings, along with a focus on expanding its presence in emerging markets where luxury consumption is on the rise.
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 exhibits robust profitability and a stable financial position, with strong gross and EBIT margins. While leverage is manageable, the rising debt levels and fluctuating revenue growth pose potential risks. Cash flow generation remains healthy, yet the decline in free cash flow warrants attention. The company should focus on maintaining its revenue growth trajectory and managing leverage to ensure long-term financial health.Income Statement
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.76B | 17.19B | 19.57B | 20.35B | 17.65B | 13.10B |
| Gross Profit | 11.51B | 12.68B | 14.93B | 15.20B | 13.07B | 9.51B |
| EBITDA | 4.03B | 4.67B | 6.57B | 6.98B | 6.13B | 4.56B |
| Net Income | 729.00M | 1.13B | 2.98B | 3.61B | 3.18B | 2.15B |
Balance Sheet | ||||||
| Total Assets | 42.43B | 43.35B | 41.37B | 33.94B | 31.07B | 28.01B |
| Cash, Cash Equivalents and Short-Term Investments | 4.24B | 3.56B | 3.92B | 4.34B | 5.25B | 3.44B |
| Total Debt | 19.89B | 20.14B | 17.16B | 11.19B | 9.59B | 9.26B |
| Total Liabilities | 26.82B | 27.62B | 25.36B | 19.16B | 17.33B | 15.97B |
| Stockholders Equity | 14.77B | 14.90B | 15.21B | 14.00B | 13.35B | 11.82B |
Cash Flow | ||||||
| Free Cash Flow | 1.39B | 1.40B | 1.85B | 3.21B | 3.94B | 2.10B |
| Operating Cash Flow | 3.73B | 4.71B | 4.46B | 4.28B | 4.88B | 2.89B |
| Investing Cash Flow | -857.00M | -3.19B | -7.30B | -2.77B | -451.50M | -196.50M |
| Financing Cash Flow | -2.50B | -1.90B | 2.38B | -2.14B | -2.93B | -1.62B |
Kering Technical Analysis
Positive
36.12
Price Trends
30.01
Positive
26.17
Positive
24.72
Positive
Market Momentum
1.78
Positive
67.09
Neutral
81.29
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 36.12 is above the 20-day moving average (MA) of 34.25, above the 50-day MA of 30.01, and above the 200-day MA of 24.72, indicating a bullish trend. The MACD of 1.78 indicates Positive momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 81.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPRUY.
Kering Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.23B | 34.64 | 6.82% | 1.18% | -1.63% | -72.22% | |
70 Neutral | $44.25B | 55.79 | 4.77% | 1.86% | -14.09% | -64.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $24.25B | 141.50 | 9.76% | 1.24% | 5.09% | -80.06% | |
58 Neutral | $1.18B | ― | 32.94% | ― | 12.68% | 62.96% | |
46 Neutral | $2.52B | ― | -142.38% | ― | -16.69% | -279.61% | |
43 Neutral | $256.11M | ― | -2353.49% | ― | -23.54% | -49.41% |
* Consumer Cyclical Sector Average
PPRUY
Kering
36.12
11.06
44.13%
TPR
Tapestry
116.82
73.11
167.26%
CPRI
Capri Holdings
21.18
-20.86
-49.62%
SIG
Signet Jewelers
103.24
8.28
8.72%
REAL
RealReal
10.26
7.24
239.74%
LANV
Lanvin Group Holdings
2.19
0.55
33.54%
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.