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CDI - Christian Dior SE News Story

€591 14.0  2.4%

Last Trade - 16/04/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £92.38bn
Enterprise Value £138.05bn
Revenue £38.69bn
Position in Universe 9th / 847

BUZZ-PREVIEW-Kering: China glosses Gucci's European challenge

Tue 16th February, 2021 5:00am
** French luxury group Kering's  PRTP.PA  Q4 sales, due on
Feb 17, are seen up 1% on strong Asian demand, though its crown
jewel brand Gucci faces difficulties amid COVID-19 uncertainties
in Europe
    ** JP Morgan expects Kering to show sustained strength in
Asia-Pacific driven by China, but warns this could be largely
offset by coronavirus restrictions in Europe and volatility of
U.S. consumption
    
    GUCCI: STRUGGLING IN EUROPE, SHINING IN ASIA
    ** While most of Kering's brands have improved in recent
months, analysts remain cautious on Gucci, flagging ongoing
wholesale challenges and concerns over tourism flows in Europe
    ** Visible Alpha consensus poll sees an organic decline of
4% for the star brand in Q4
    ** Jefferies struggles to see how Gucci can recover the 1
billion euros ($1.21 billion) in sales it lost in Europe as
travel lags, adding the brand does not resonate enough in the
region
    ** In China, however, Berenberg points to a solid momentum
for the anchor brand and a re-acceleration into 2021
    ** "Gucci story is not over," it says, noting management's
impressive track record of brand turnarounds
    ** Analysts see strong potential and organic growth from the
group's smaller brands such as Saint Laurent and Bottega Veneta,
seen up 4% and 18%, respectively
    ** Berenberg notes strong brand momentum from Balenciaga,
Saint Laurent, and Bottega Veneta, adding that competitor LVMH's
 LVMH.PA  brands look weaker, barring Louis Vuitton and Dior
 urn:newsml:reuters.com:*:nL8N2K15PB
    
    M&A POTENTIAL
    ** Analysts predict more sector consolidation in the near
term, and see Kering as a likely acquirer after LVMH closed its
$15.8 billion acquisition of Tiffany in January  urn:newsml:reuters.com:*:nL1N2JI180
    ** In 2020, Citi says, market speculations have also
resurfaced on a potential tie-up between Richemont  CFR.S  and
Kering on the back of renewed mergers and acquisitions activity
in the luxury sector


($1 = 0.8249 euros)

 (Reporting by Juliette Portala and Sarah Morland)
 ((juliette.portala@thomsonreuters.com ;
sarah.morland@thomsonreuters.com))
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