Post by : Badri Ariffin

Paris – Shares of Kering, the parent company of Gucci, surged 5% in early trading on the Paris stock market Thursday, following a quarterly update that exceeded analysts’ expectations. The performance signals a cautiously positive turn for the luxury giant under newly-appointed CEO Luca de Meo.

The company reported an overall 5% decline in sales, reflecting the ongoing challenges luxury brands face in drawing consumers back to boutiques. Despite this, the figures outperformed forecasts, boosting investor confidence and demonstrating the resilience of Kering’s portfolio. Gucci, alongside other key brands in Kering’s stable, showed signs of stabilizing demand in major markets.

Industry watchers noted that this quarter marks the first under Luca de Meo’s leadership, setting the stage for strategic shifts aimed at reinvigorating growth across Kering’s luxury labels. Analysts highlighted that the absence of earnings downgrades, a rarity in recent years, adds a silver lining to the report.

The stock movement also underscores the cautious optimism surrounding Europe’s luxury sector, as shoppers increasingly return to high-end stores amid shifting consumer patterns. Investors appear willing to react positively, yet market observers advise measured enthusiasm until Kering’s full-year results and its strategic plan, expected this spring, provide clearer direction.

This latest trading activity positions Kering as a closely-watched player in the luxury market, balancing short-term resilience with the long-term challenges of sustaining growth in a competitive industry.

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