Kering shares have been given a Neutral rating by UBS after the luxury group reported disappointing third-quarter results. UBS has set a price target of 227 euros.
The retail sector experienced a significant decline in sales, particularly impacting the flagship brand, Gucci, despite the introduction of new collections in stores. The outlook for Ebit has also worsened, falling more than 10% below consensus expectations, which is even more severe than the most pessimistic forecasts. This unexpected downturn is expected to put further downward pressure on Kering's stock in a challenging sector environment.