Kering Stock Surges on Positive Quarterly Results and Strategic Overhaul

Paris, October 23, 2025 — Shares of French luxury powerhouse Kering (PRTP.PA) — owner of iconic brands including Gucci, Yves Saint Laurent, and Bottega Veneta — soared as much as 9% in early Paris trading on Thursday after reporting better-than-expected quarterly sales. The smaller-than-forecast revenue decline sparked renewed investor enthusiasm, extending a powerful rally that began with the appointment of new CEO Luca de Meo.

The company’s trading update showed a 5% drop in total sales, less severe than analysts had predicted. This marked the first quarterly report under de Meo’s leadership since he officially took the helm in September 2025, ushering in a new era of strategic transformation for the luxury group.

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A Stunning Rebound for Kering Shares

Kering’s stock has nearly doubled in value since June, when chairman and controlling shareholder François-Henri Pinault announced de Meo’s appointment. The company’s share price recovery from a nine-year low in April to a 15-month high in October highlights growing investor confidence in the turnaround plan for one of Europe’s most prestigious fashion groups.

“There is a lot to like in the Kering story and in these results,” analysts at Deutsche Bank commented, citing promising early signs from Gucci, including the strong performance of new handbag collections that have attracted younger consumers back to the brand.

Meanwhile, Citi analysts noted the absence of earnings downgrades — a first in over three years — but cautioned that investors should wait for full-year results and Kering’s new strategic roadmap, expected in early 2026, before “chasing what feels like a FOMO rally.”

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De Meo’s Bold Moves: Fast-Tracking Change at Kering

Although Luca de Meo arrived from the automotive industry with no prior luxury sector experience, his decisive leadership has quickly reshaped sentiment around Kering. Determined to act swiftly, de Meo has said he will implement major decisions ahead of the formal strategic plan, emphasizing operational agility, creativity, and digital transformation.

Over the weekend, Kering announced a $4.7 billion deal to sell its beauty and fragrance division to L’Oréal, a move seen as a strategic pivot allowing the company to focus more on its core fashion and leather goods businesses. The sale is expected to improve profitability, streamline the brand portfolio, and provide fresh capital for growth initiatives across Kering’s high-end labels.

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Gucci at the Heart of Kering’s Revival

Gucci, which accounts for over half of Kering’s total revenue, has faced several challenging quarters marked by weaker demand in China and shifting consumer preferences. Under de Meo’s direction, Gucci is undergoing a brand reinvention, centered on product innovation, high-profile collaborations, and revamped retail experiences.

The company’s refreshed handbag lines and greater focus on craftsmanship have already shown early signs of success. Analysts believe Gucci’s revival will be critical in restoring Kering’s competitive edge against rivals LVMH and Hermès, which have consistently outperformed in recent years.

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Market Reaction and Industry Outlook

Thursday’s stock rally positions Kering as one of the top-performing luxury stocks in Europe this quarter. The STOXX Europe 600 Luxury Index has also benefited from strong corporate earnings across the sector, with investors favoring brands that demonstrate resilience amid slowing global demand.

Luxury industry experts expect de Meo’s fast-tracked turnaround strategy to include deeper investment in e-commerce, sustainable materials, and digital marketing to reconnect with younger consumers. Kering’s focus on rejuvenating its major houses while divesting non-core assets could set the tone for a new growth cycle heading into 2026.

“Kering’s comeback story is just beginning,” said Sophie Laurent, senior analyst at BNP Paribas Wealth Management. “De Meo’s unconventional background brings a fresh operational mindset that luxury needs right now — more efficiency, more clarity, and faster execution.”

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Key Highlights

• Kering shares rose as much as 9%, extending their rally since June.
• Quarterly sales fell 5%, less than analyst expectations.
• CEO Luca de Meo’s leadership continues to boost investor confidence.
• $4.7 billion sale to L’Oréal will streamline operations and enhance liquidity.
• Gucci’s revival and product success key to Kering’s long-term strategy.
• Analysts remain cautiously optimistic, awaiting full-year 2025 results and the new strategic plan in 2026.