French luxury splits as Kering surges, Hermes disappoints
BUZZ-French luxury splits as Kering surges, Hermes disappoints ** Kering PRTP.PA leaps over 11.3% after delayed trading at market open after reporting quarterly results that beat expectations on both sales and recurring operating profit, prompting HSBC to upgrade the stock to "buy" from "hold".
**Hermes HRMS.PA , by contrast, drops around 3% after its quarterly update failed to convince investors a "fundamental rebound" is in the making, according to one trader
** HSBC says Kering is "moving in the right direction", pointing to CEO Luca de Meo's focus on key priorities and efforts to reconnect with aspirational consumers, particularly at flagship brand Gucci
** At Hermes, J.P. Morgan sees growth accelerating less pointedly than at its peers, even if profitability improved modestly
** The slower pace of growth relative to rivals continues "to drive question marks" among investors about Hermes' growth trajectory over the short, medium and long term, broker says
** If gains hold, Kering is on track for its best day since February 2026, reducing its year-to-date decline to around 7%
** Hermes, meanwhile, is set to extend its losses for the year to more than 22%
** LVMH LVMH.PA is up around 3%, with peers Richemont CFR.S and Moncler MONC.MI trading relatively flat in Zurich and Milan
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