Kering (PPRUY) AI Stock Analysis

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Kering

(OTC:PPRUY)

Rating:70Outperform

Price Target:

$27.00

▲(9.00% Upside)

Kering's overall stock score reflects strong financial performance and positive technical indicators, offset by high valuation concerns and negative earnings call sentiment due to revenue declines and market challenges.

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

Market Cap

$29.90B

Dividend Yield2.99%

Average Volume (3M)21.74K

Price to Earnings (P/E)37.6

Beta (1Y)1.06

Revenue Growth-14.09%

EPS Growth-64.67%

CountryUS

Employees44,627

SectorConsumer Cyclical

Sector Strength74

IndustryLuxury Goods

Share Statistics

EPS (TTM)0.42

Shares Outstanding1,234,207,800

10 Day Avg. Volume12,823

30 Day Avg. Volume21,737

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.54

Enterprise Value/Revenue2.67

Enterprise Value/Gross Profit3.62

Enterprise Value/Ebitda9.84

Forecast

1Y Price Target

$18.50

Price Target Upside-25.31% Downside

Rating ConsensusHold

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 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: -1.39%|

Next Earnings Date:Feb 18, 2026

Earnings Call Sentiment Negative

The earnings call highlighted Kering's effective cost management and financial improvements, such as reduced net financial debt and strong free cash flow. However, these positives were overshadowed by significant revenue declines, challenges in key markets, and difficulties faced by Gucci and other segments, leading to a negative overall performance.

Q2-2025 Updates

Positive Updates

Resilient Performance of Bottega Veneta

Bottega Veneta's revenue was EUR 846 million, up 2% comparable in H1, with retail remaining the main driver. Growth in North America was significant, up 18%.

Efficient Cost Management

Kering achieved a reduction in group OpEx by 11% reported or more than EUR 550 million, with a substantial contribution from fixed costs.

Strong Free Cash Flow

Free cash flow from operations was EUR 2.4 billion after EUR 431 million in CapEx in the first half.

Reduction in Net Financial Debt

Net financial debt was EUR 9.5 billion, a EUR 1 billion improvement compared to year-end.

Negative Updates

Significant Revenue Decline

First half revenue was down 16% reported and 15% comparable, with a 1 point negative FX impact. Q2 revenue trend was in line with H1, down 15% comparable.

Decreased Operating Income

Recurring operating income was EUR 969 million, down 39% year-on-year, with an EBIT margin of 12.8%.

Challenges in Key Markets

Japan and Asia Pacific saw significant declines, with Japan down 29% comparable in Q2 and Asia Pacific down 19% comparable in Q2.

Gucci's Revenue Challenges

Gucci's H1 revenue was EUR 3 billion, down 25% comparable, with retail down 23% in Q2. Wholesale was down 50% in the quarter.

Network Optimization Impact

Kering's store footprint showed a net decrease of 41 units since year-end, impacting revenue.

Company Guidance

In the Kering 2025 First Half Results Conference Call, the company reported a revenue of EUR 7.6 billion and a recurring operating income of EUR 969 million, resulting in a 12.8% margin. Despite a 470 basis point year-on-year margin dilution, the company managed to exceed its earlier forecast of a 500 basis point decline, attributed to effective cost-control measures. The free cash flow from operations reached EUR 2.4 billion, with net financial debt reduced by EUR 1 billion to EUR 9.5 billion. The first half revenue faced a 16% decline on a reported basis and a 15% comparable decline, impacted by a 1 percentage point negative FX effect. The second quarter mirrored the first half trend, with a 15% comparable decline in revenue and a 3 percentage point FX headwind. Retail, accounting for 73% of revenue, decreased by 16% comparably in both quarters, with a net decrease of 41 stores since year-end. The company anticipates a continued decline in wholesale, with H1 witnessing a 10% comparable drop. Despite these challenges, Kering maintained a robust free cash flow and continued its deleveraging trajectory, aiming for improved operational efficiency and strategic store closures to enhance brand perception and client experience.

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.19B	19.57B	20.35B	17.65B	13.10B
Gross Profit	12.68B	14.93B	15.20B	13.07B	9.51B
EBITDA	4.67B	6.57B	6.98B	6.13B	4.56B
Net Income	1.13B	2.98B	3.61B	3.18B	2.15B
Balance Sheet
Total Assets	43.35B	41.37B	33.94B	31.07B	28.01B
Cash, Cash Equivalents and Short-Term Investments	3.56B	3.92B	4.34B	5.25B	3.44B
Total Debt	20.14B	17.16B	11.19B	9.59B	9.26B
Total Liabilities	27.62B	25.36B	19.16B	17.33B	15.97B
Stockholders Equity	14.90B	15.21B	14.00B	13.35B	11.82B
Cash Flow
Free Cash Flow	1.40B	1.85B	3.21B	3.94B	2.10B
Operating Cash Flow	4.71B	4.46B	4.28B	4.88B	2.89B
Investing Cash Flow	-3.19B	-7.30B	-2.77B	-451.50M	-196.50M
Financing Cash Flow	-1.90B	2.38B	-2.14B	-2.93B	-1.62B

Kering Technical Analysis

Technical Analysis Sentiment

Positive

Last Price24.77

Price Trends

50DMA

22.32

Positive

100DMA

21.29

Positive

200DMA

23.28

Positive

Market Momentum

MACD

0.68

Positive

RSI

58.85

Neutral

STOCH

18.47

Positive

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 24.77 is above the 20-day moving average (MA) of 24.10, above the 50-day MA of 22.32, and above the 200-day MA of 23.28, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 18.47 is Positive, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPR	74 Outperform	$23.16B	29.34	40.27%	1.29%	2.67%	1.31%
PPRUY	70 Outperform	$29.90B	37.58	4.77%	2.99%	-14.09%	-64.67%
Sector *	67 Neutral	¥265.09B	13.26	6.53%	2.53%	5.21%	-14.31%
SIG	63 Neutral	$3.13B	82.47	2.04%	1.62%	-3.98%	-93.50%
LUXE	63 Neutral	$691.51M	―	-8.75%	―	7.08%	-42.22%
CPRI	51 Neutral	$2.15B	―	-142.38%	―	-16.69%	-279.61%
REAL	50 Neutral	$650.30M	―	32.94%	―	11.89%	66.22%

* Consumer Cyclical Sector Average

Performance Comparison

PPRUY

Kering

24.77

-3.36

-11.94%

TPR

Tapestry

108.48

71.40

192.56%

CPRI

Capri Holdings

20.77

-11.33

-35.30%

SIG

Signet Jewelers

75.25

1.17

1.58%

REAL

RealReal

5.51

3.05

123.98%

LUXE

LuxExperience

7.94

4.31

118.73%

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: Jul 30, 2025