Overview
- Kering reported third-quarter revenue of €3.42 billion, down 5% on a comparable basis (10% reported) and better than expectations, with a roughly 5% negative currency effect.
- Gucci sales fell about 14% on a comparable basis to roughly €1.3–1.34 billion, a sharp improvement from a 25% drop in Q2, helped by stronger momentum in North America and Western Europe and recent leathergoods launches.
- Shares rose as much as about 9% in Paris trading and ended the day up 8.7% at €344.95, extending a rally since de Meo took over in September.
- Kering agreed to sell its beauty business to L’Oréal for about €4 billion ($4.7 billion), including Creed and long-term brand licenses, and the partners plan an exclusive wellness and longevity venture.
- Analysts praised the sequential progress and management actions—Deutsche Bank raised its price target—while others urged caution pending the full-year results and de Meo’s strategic plan expected next year.