Kering
Kering Shares Plummet as Gucci Turnaround Falters
Kering shares fell 11% to a July 2025 low as Gucci's turnaround struggles. Hermès and LVMH also weakened, while L'Oréal surged 4% on strong results.
Kering Shares Plummet as Gucci Turnaround Falters
Kering shares took a sharp plunge on Friday, falling 11 percent to their lowest level since July 2025. The decline marked another negative surprise for the luxury segment, which had already been rattled the previous day when Hermès shares slipped after its results failed to impress. The fallout spread across the sector, with LVMH and Richemont also weakening ahead of the weekend.
Gucci Remains the Focal Point
Once again, the Gucci brand was at the centre of attention at Kering. Analysts at Deutsche Bank Research stressed that a business turnaround remains difficult as long as there is no convincing stabilisation at the label. All eyes are now on the full-year figures, which will reveal whether cost savings are having a positive impact.
A Bright Spot from L’Oréal
In contrast, L’Oréal provided a rare bright spot. The cosmetics group’s shares rose 4 percent, building on their recent upward breakout and reaching their highest level since mid-2024. Analysts at Jefferies described the third-quarter figures as impressive, with the company significantly exceeding consensus estimates.
The contrasting performances highlight the divergent fortunes within the consumer goods sector. While luxury houses grapple with shifting demand and brand-specific challenges, L’Oréal’s strength underscores the resilience of the beauty market.
