Historical Stock Chart
1 Month : From Oct 2019 to Nov 2019
By Cristina Roca
French luxury-goods conglomerate Kering is scheduled to report revenue for the third quarter on October 24. Here's what you need to know:
SALES FORECAST: Revenue at Gucci, Kering's flagship brand, is seen at 2.33 billion euros ($2.60 billion), according to a consensus forecast provided by Factset.
WHAT TO WATCH:
-GUCCI GROWTH RATE: Like every quarter, the market will be scrutinizing the organic growth rate at Gucci, Kering's star brand, to see how fast its momentum is cooling. Spooked investors wiped nearly $5 billion from Kering's market value in July when the company's second-quarter figures showed Gucci's organic growth rate was 13%, slowing from 20% during the first quarter of the year. UBS analysts expect Gucci's top-line to show signs of stabilizing momentum this quarter, and are hopeful this could help Kering's shares re-rate.
-WILL GUCCI FIND ITS FOOTING IN THE U.S.? Gucci stumbled in the U.S. last quarter after one of its products, likened to blackface, offended customers. The brand lay low over the summer, but resumed marketing efforts in September, so Deutsche Bank analysts will be looking to see whether this will enable the brand to offset tough trends in this market, they say. Morgan Stanley analysts also note the market will be keen to get more details on Gucci's plans for the U.S., but believe the third quarter will still be negative there.
-BOTTEGA VENETA COMEBACK: The brand has received good feedback under new head designer Daniel Lee and has started to show signs of improvement. UBS analysts expect it to post 4% organic growth sales growth this quarter.
Write to Cristina Roca at email@example.com; @_cristinaroca
(END) Dow Jones Newswires
October 22, 2019 11:01 ET (15:01 GMT)
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