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CDI - Christian Dior SE News Story

€604.5 10.5  1.8%

Last Trade - 22/04/21

Consumer Cyclicals
Large Cap
Market Cap £92.58bn
Enterprise Value £138.11bn
Revenue £38.57bn
Position in Universe 10th / 847

BUZZ-Street View: Kering's momentum right despite Gucci fatigue

Fri 23rd October, 2020 10:19am
** Kering  PRTP.PA  reported on Thursday recovering Q3 sales
thanks to demand in Asia and the U.S. but its crown jewel Gucci
brand lagged peers*:nL8N2HD78N*:nS8N2CV06M
    ** Kering shares, which also owns Saint-Laurent, slide
around 3%
    ** Analysts agree that the beat, even though temporarily
overshadowed by disappointing Gucci performance, will contribute
to a varying degree to potential consensus upgrades 
    ** Analysts applaud Q3 outperformance at other Kering brands
like Saint-Laurent (SL), Bottega Veneta (BV), Alexander McQueen,
and Balenciaga
    ** Credit Suisse, RBC, Bryan Garnier raise there 2020
forecasts, while Jefferies says its current estimate look
reasonable as it expects "good but not yet great"
    ** Analysts agree Gucci will somewhat stay under water in
Q4, while the market will now look for far better trends in Q4,
Jefferies adds, but highlights Gucci issues are short-term
    ** "Momentum is heading in the right direction," Jefferies
    ** Credit Suisse models no improvement for Gucci in Q4,
saying it has likely given market share back in Q3, while
on-going wholesale rationalization, rising uncertainties over
new restrictions in Europe, U.S. elections, and tourism flows
won't help
    ** It however raises 2020 and 2021-22 estimates due to a
more encouraging mid-term outlook at BV and SL, even if
partially offset by unfavourable divisional mix
    ** Bryan Garnier also flags Q3 support from BV and SL, and
the fact that October trends stay in-line with September,
showing no slow down, helping the case in 2020
    ** Other brand's beat demonstrates the quality of the
broader assets within Kering's portfolio, RBC says, seeing
plenty of reasons to remain optimistic at group level

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