(Corrects date of third quarter sales report to October 22 (from October 26) in last paragraph)
LONDON (Reuters) -Shares in Gucci-owner Kering hit their highest level of 2025 on Monday, on optimism that new chief executive Luca de Meo can turn the struggling fashion house’s fortunes around, following years of underperformance.
Kering shares were last up 3% at 283.25 euros, eclipsing the previous year-to-date high to touch their strongest level since August last year. Shares are still down over 60% from their peak in 2021.
But, the luxury group’s shares have risen over 60% in the last three months on expectations that crisis specialist de Meo, the former Renault boss, can reignite sagging sales and materially cut costs.
Kering sales declined 15% in the second quarter, the company said in July. Gucci sales, which account for 45% of the group’s revenue, fell by 25%.
“Kering’s investment case continues to evolve amid ongoing management changes (new CEO joined recently), which bring a hope of a stabilisation for the group after multiple years of underperformance driven by Gucci,” UBS analyst Zuzanna Pusz said in a note on Monday.
“The upcoming results could show more signs of stabilisation with a sequentially narrowing sales decline, likely ahead of its peers,” Pusz added.
De Meo began in the role earlier this month. The company is scheduled to report third quarter sales on October 22.
(Reporting by Samuel Indyk and Danilo Masoni; Editing by Amanda Cooper)
