KERING

Analysis of Kering share price

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Are you planning to invest in the Kering share online and are you looking for relevant advice and help in carrying out effective analyses? In that case, take a few moments to discover, through this comprehensive fact sheet, some important information about this stock such as its quotation data, its historical technical analysis, the activities of this company, its competitors and allies, as well as the advantages and disadvantages of this stock. You will then be able to carry out your own analyses based on the information we have provided you with, which will serve as a basis for anticipating future trends. You will then be able to base these analyses on relevant data and a good knowledge of this group and its current and past economic environment.  

Elements that can influence the price of this asset:

Analysis N°1

Firstly, it is known that the Kering Group's strategy for its future development is primarily based on strategic purchasing. It is therefore more than important to closely follow such announcements, which could enable Kering to gain numerous market shares and thus see its share price rise.

Analysis N°2

The positioning of this group on emerging markets is also a major challenge, the success of which will thus have an undeniable influence both on the Kering group's results and on the development of its share on the stock market.

Analysis N°3

Of course, the Kering Group also faces certain threats that could hinder its development and growth. This is notably the case with the problems of counterfeiting of its products, which are becoming increasingly frequent and invading the market. These counterfeit products could have a very negative influence on the Group's brand image.

Analysis N°4

Finally, one must also take into account the rise in production costs and in particular the cost of labour, which could force Kering to increase its selling prices in the long term in a market less and less inclined to spend on luxury goods. The group's financial situation is thus threatened.

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General presentation of the Kering company :

The French group Kering is currently one of the big names in the sector of the design, production and sale of luxury goods and sports articles. However, the activities of this group can be divided into three main categories according to the share of turnover they generate.

Luxury goods account for more than 68.4% of the total turnover of the Kering company, with in particular leather goods, ready-to-wear, watches, shoes, jewellery, glasses, perfumes and cosmetics. These products are marketed under various brands such as Gucci, Bottega Veneta, Yves-Saint-Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, JeanRichard, Pomellato, Qeelin and Ulysse Nardin. At present, the Kering group has more than 1,305 boutiques throughout the world, most of which are located in Western Europe and particularly in France with 338 boutiques in Europe, then 248 boutiques in Japan and 213 boutiques in North America. The remaining 506 boutiques are located in other countries around the world.

Sporting goods generate 31.4% of Kering's overall turnover with mainly sports shoes, sports clothing, sports equipment and accessories. These products are marketed under the brand names Puma, Volcom and Electric. Finally, a few ancillary activities generate the remaining 0.2% of turnover.

Geographically, the Kering Group generates nearly 37.9% of its turnover in Europe, the Middle East and Africa. 9.9% of this turnover is generated in Japan. 25.9% of turnover is generated in Asia-Pacific, followed by 22.1% in North America and 4.2% in South America.

 

Knowing the competition of the Kering share :

If you are interested in the luxury sector and wish to invest in the Kering share price, you are probably already aware that this sector is very closed and that there are few competitors in this sector. However, although the Kering Group has a strong presence throughout the world and is one of the big names in the international luxury goods industry, it is not the only one to covet these market shares. In order to carry out a complete and relevant analysis of the Kering share, you must of course carry out a fundamental analysis that takes into account the competition in this sector of activity. Thus, the development of the market share of each of these companies as well as important events concerning it such as purchase or sale transactions, as well as the financial results and all news from these groups will have an undeniable influence on the share price on the stock exchange.

Today, the Kering Group faces three main competitors with :

 

The strategic alliances set up by the Kering Group :

Of course, the Kering group did not climb the podium of the largest luxury companies without an intelligent strategy, which included certain associations with other companies in similar or complementary sectors. Here you can find out more about the most recent alliances and partnerships that have had the greatest influence on the share price on the stock exchange.

 

Analysis of the Kering share price

A first look at the historical stock market graphs of the Kering share confirms that this stock benefits from a long upward trend that has allowed it to go from the €85 level in 2008 to more than €400 in 2018, which represents a very significant gain in points. But of course, this rise did not happen in one go and several medium and long term upward and downward movements punctuated this fundamental trend.

The period began with a slight drop in prices between March and December 2008, with the price dropping from €92.86 to just €40. But the beginning of 2009 marks the beginning of a long and stable upward trend despite its lack of volatility. This rise will lead the stock to break the €100 resistance in April 2010 and will continue to rise until reaching a first high of €129.80 in March 2012. At that point, a temporary bearish turnaround will take place, lasting until July 2012 and bringing the stock back to the €111 level.

From the beginning of autumn 2012, the Kering share price begins a new and interesting rise to the level of €178 in March 2013 and then to €183.10 in August of the same year. As before and as the major resistance of €200 approaches, the trend then reverses and the share drops to €137.35 in March 2014, probably due to profit-taking. But very quickly, the rise resumed and allowed the stock to reach the level of €193.30 in March 2015.

Unfortunately, this movement will be short-lived and the share price will then drop again, returning to the €142 level around June 2016. The summer of 2016 will then be the starting point of a new upward trend that will be stronger and more volatile than the previous ones that can be seen at first glance on the stock charts. This rise has enabled the share to successively overcome several major technical resistances with first the €200 threshold, which will be broken in October 2016, and then the €300 threshold, which will be crossed in June 2017. Finally, the Kering share will also manage to break the €400 threshold between October 2017 and January 2018.

But this resistance seems more difficult to break than the previous ones and nothing indicates for the moment that this strong upward trend will occur. It will indeed be necessary to wait a few months before knowing in which direction the Kering share price will evolve.

 

What are the strengths and advantages of the Kering share as a stock exchange asset?

 

What are the weak points and disadvantages of the Kering share as a stock exchange asset?

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Trade the Kering share!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.