Kering: Gucci – getting the house in order; upgrade to EW

Research evidence excerpt

Kering: Gucci – getting the house in order; upgrade to EW

Equity Research

European Luxury Goods & Specialty Retail

11 May 2026

Kering

Gucci – getting the house in order;

upgrade to EW

We expect the luxury sector to grow c.3% in 2026 and then PRTP.PA/KER FP EQUAL WEIGHT

stabilise at c.4%. We like stocks that can deliver above- from Underweight

European Luxury Goods &

market growth through self-help. With 8% revenue CAGR, Specialty Retail NEUTRAL

Unchanged

c.10pp EBIT margin expansion and 55% EPS CAGR Price Target EUR 300.00

raised 18% from EUR 255.00through '28, Kering could be one, once '26-27 revisions are

behind it. Upgrade to EW Price (08-May-26) EUR 245.90

Potential Upside/Downside +22.0%

Source: Bloomberg, Barclays Research

With this report, we transfer coverage to Viktoria Petrova and upgrade Kering to Equal Weight with

a DCF-derived price target of €300 as: 1/ we forecast c.8% revenue CAGR over FY27-29, implying Market Cap (EUR mn) 30349

c.4% annual outperformance vs. global luxury market growth; 2/ we expect the ongoing changes Shares Outstanding (mn) 123.42

in organisational structure and store footprint to deliver material cost savings across store lease Free Float (%) 56.97

expenses, personnel costs and G&A, driving 38% EBIT CAGR and 55% EPS CAGR through FY29e, 52 Wk Avg Daily Volume (mn) 0.3

while our assumptions look realistic in an historical context; and 3/ FY26-27e consensus is still too Dividend Yield (%) 1.22

high in our view, and our target multiples are above sector average. On balance, we upgrade Return on Equity TTM (%) 0.49

Kering to Equal Weight. Current BVPS (EUR) 119.93

Source: Bloomberg

Key point #1: Self-help-driven 8% revenue 3y CAGR: With 4% luxury market growth

expectations, we look for self-help-driven acceleration stories.