Kering SA develops a portfolio of renowned houses in fashion, leather goods, and jewelry across Asia Pacific, Western Europe, North America, Japan, and internationally. It offers ready-to-wear, accessories, and beauty products for men and women, along with leather goods and shoes, watches and jewelry, eyewear, and fragrances and cosmetics. Its brands include Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, and Ginori 1735, as well as Kering Eyewear and Kering Beauté. Formerly known as PPR SA, the company changed its name to Kering SA in May 2013; it was founded in 1963 and is based in Paris, France.
Kering's Gucci turnaround gains traction, but tariff probe and $400M exit cost linger
▲
Gucci turnaround drives 15%+ share surge Kering shares jumped about 15-17% after Q2 results showed Gucci's sales fell only 2% organically, far less than feared, and leather goods returned to growth. Analysts upgraded the stock, with HSBC raising its target to €340. This is the main force pushing KER.PA up.
This is the biggest new event of the period and directly explains the sharp share price move.
▲
First-half return to growth and debt cut Kering reported H1 2026 revenue up 1% and Q2 up 2%, with operating margin improving to 12.8%. Net debt fell by €4.7 billion to €3.3 billion, helped by €2.6 billion free cash flow. This supports the recovery story and gives the company more financial room.
These results underpin the positive share move and show the turnaround is more than just Gucci.
▲
Jewelry becomes a growth engine Kering's jewelry sales rose 22% in Q1, the fastest among its businesses, as consumers shift toward jewelry amid high gold prices and fashion fatigue. This trend, seen across the luxury sector, gives Kering a valuable second growth driver beyond Gucci.
It highlights a structural positive for Kering's revenue mix that investors are rewarding.
▼
Tariff refund probe and $400M Gucci Beauty exit cost Kering faces a class-action investigation over whether it kept tariff-related price hikes after tariffs were struck down, a potential legal and reputational risk. It also paid $400 million to end the Gucci beauty license early, a cash cost that partly offsets the positive results.
These are real counterweights that could weigh on the stock and are new this period.
Q3 2026
▲3▼1
Kering's Gucci turnaround gains traction, but tariff probe and $400M exit cost linger
▲
Gucci turnaround drives 15%+ share surge Kering shares jumped about 15-17% after Q2 results showed Gucci's sales fell only 2% organically, far less than feared, and leather goods returned to growth. Analysts upgraded the stock, with HSBC raising its target to €340. This is the main force pushing KER.PA up.
This is the biggest new event of the period and directly explains the sharp share price move.
▲
First-half return to growth and debt cut Kering reported H1 2026 revenue up 1% and Q2 up 2%, with operating margin improving to 12.8%. Net debt fell by €4.7 billion to €3.3 billion, helped by €2.6 billion free cash flow. This supports the recovery story and gives the company more financial room.
These results underpin the positive share move and show the turnaround is more than just Gucci.
▲
Jewelry becomes a growth engine Kering's jewelry sales rose 22% in Q1, the fastest among its businesses, as consumers shift toward jewelry amid high gold prices and fashion fatigue. This trend, seen across the luxury sector, gives Kering a valuable second growth driver beyond Gucci.
It highlights a structural positive for Kering's revenue mix that investors are rewarding.
▼
Tariff refund probe and $400M Gucci Beauty exit cost Kering faces a class-action investigation over whether it kept tariff-related price hikes after tariffs were struck down, a potential legal and reputational risk. It also paid $400 million to end the Gucci beauty license early, a cash cost that partly offsets the positive results.
These are real counterweights that could weigh on the stock and are new this period.
News & notes movingKER.PA
European UnionUnited StatesChinaHong Kong SAR ChinaSwitzerlandItalyUnited KingdomFrance
KER.PA▼
Goldman Sachs Initiates EU Luxury Coverage, Rates Richemont, LVMH, Moncler and Prada Buy
Goldman Sachs initiated coverage of 10 European luxury stocks, assigning Buy ratings to just four, as it argued that muted sector growth will not last and that 2027 will mark a turning point after three years of post-COVID normalization. Analysts led by Erwan Rambourg said the slowdown in sales has been driven less by macro headwinds than by aggressive pricing and a slower pace of innovation, both potentially linked to a degree of strategic inertia, noting that traditional luxury brands raised prices by about 60% between mid-2019 and mid-2026. Goldman forecasts organic sales growth for its coverage rising from 6% in 2026, on depressed 2024 and 2025 comparisons, to 7% in 2027, with the sector reverting to mid-single-digit growth, and expects U.S. outperformance to extend into 2027 and beyond, a mechanical rebound in the Middle East and stabilizing sales in China, while Europe stays muted apart from American tourist flows. The four Buy-rated stocks are Richemont, LVMH, Moncler and Prada, with price targets of CHF225, €500, €62 and HK$52 respectively. Goldman initiated Kering, Burberry and Brunello Cucinelli at Neutral and kept Zegna at Neutral, while starting Hermes and Swatch at Sell.
CFR.SW · Capital · Positive Goldman initiated Richemont with a Buy rating and CHF225 price target.
MC.PA · Capital · Positive Goldman initiated LVMH with a Buy rating and €500 price target.
UHR.SW · Capital · Negative Goldman Sachs initiated Swatch at Sell, the only Sell rating alongside Hermes, signaling a negative analyst valuation call.
0QII.LSE · Capital · Positive Goldman initiated Moncler at Buy with a €62 price target.
1913.HK · Capital · Positive Goldman initiated Prada at Buy with a HK$52 price target.
BRBY.LSE · Capital · Negative Goldman initiated Burberry at Neutral, not among its four Buy-rated luxury names.
Kering CEO Stresses Italy Focus, Denies Moving Production
Luca de Meo, chief executive of French luxury fashion group Kering, said on the 30th that Italy continues to occupy a central position and that the company has no intention whatsoever of moving production out of the country. De Meo also stressed that he has no interest at all in taking a minority stake in Italian luxury fashion brand Armani, and said Kering's name was not mentioned in the will of founder Giorgio Armani. Regarding the production of some sneakers for its Italian brand Gucci in China, he explained that this was determined by specific technical requirements, and insisted that there is no intention to relocate production or anything of the sort. He noted that Kering's supply chain has too many tiers and is excessively fragmented, with just 25 percent of suppliers currently accounting for 98 percent of total procurement, and said the company is working to restructure its supply chain.
KER.PA · Supply · Neutral CEO says Kering will keep production in Italy and is restructuring its overly fragmented, multi-tier supply chain.
Giorgio Armani Group · · Neutral Kering CEO denies interest in taking a minority stake in Armani and says Kering was not named in Giorgio Armani's will.
Kering Promotes Sophie Maddaloni to Group General Secretary
Kering has promoted Sophie Maddaloni, its longtime group tax director, to general secretary of the group, effective immediately. Maddaloni, who is based in Paris, also joins Kering's executive committee and reports to Jean-Marc Duplaix, group chief operating officer. She succeeds Mélanie Flouquet, who left Kering last May after 14 months to join investment bank Morgan Stanley. In her new role, Maddaloni is responsible for the group's governance and for safeguarding its interests, as well as for upholding the highest standards of compliance, and she oversees its legal, internal control, internal audit and security departments. Maddaloni joined Kering in 2017 and previously held international tax and legal roles at Elf Aquitaine, Alstom and Technip.
KER.PA · · Neutral Kering promotes Sophie Maddaloni to group general secretary, a governance/compliance leadership change with no clear financial driver.
China's tentative luxury spending recovery appears to be losing momentum, with early third-quarter data showing a sharp slowdown that raises the risk of another false dawn for the sector, according to Bernstein analysts. Luxury shopping mall sales in mainland China weakened sharply in June and July, culminating in a 12% year-over-year decline in July, following broadly flat growth in the first quarter and low-single-digit growth in the second. The slowdown interrupts a gradual revival over the previous four quarters, as consumer confidence remains depressed and middle-class shoppers are weighed down by weaker economic growth and substantial price increases implemented by luxury brands. New tax measures, including greater scrutiny of offshore wealth and tougher enforcement, are curbing spending among high-net-worth individuals, who had remained resilient. In response, Bernstein cut its third-quarter industry organic growth forecast by 110 basis points to 4.9%, down from 6.3% in the second quarter, and trimmed the full-year 2026 estimate by 40 basis points to 5.1%. Performance is diverging sharply among brands, with Zegna, Gucci, and Richemont's Jewellery Maisons showing relative strength, while LVMH has been weaker. Richemont remains the preferred luxury name, while Gucci's 20% to 30% price cuts could support Kering's near-term performance but risk weakening brand equity over time.
Europe's Luxury Giants See Green Shoots in China Market
Europe's biggest luxury firms are turning more positive on the crucial Chinese market as a fragile spending recovery takes shape. Chinese household consumption is stabilizing and even rebounding in some categories like high-end cosmetics, according to Bloomberg Intelligence analysts. Earnings estimates point to a pickup in performance, with Gucci-owner Kering expected to return to sales growth in the region including China by the fourth quarter, while Burberry reported a 9% jump in retail sales in Greater China in the most recent quarter. LVMH said China appears to be stabilizing after several quarters of deterioration, and smaller players like Moncler are also well positioned. The spending boost is primarily driven by high-net-worth consumers, with the key debate centering on whether improving sentiment can broaden beyond affluent shoppers.
Coty Posts Wider-Than-Expected Q4 Loss, Prestige Sales Up 1%
Coty Inc. reported a wider-than-expected adjusted loss for the fourth quarter of fiscal 2026, while net revenues rose 1% to $1,269.2 million and beat consensus estimates. The adjusted loss of two cents per share compared with a loss of five cents a year earlier but missed the Zacks Consensus Estimate of a one-cent loss, sending shares down more than 5%. Prestige revenues increased 1% to $771.8 million, representing 61% of total sales, while Consumer Beauty revenues advanced 1% to $497.4 million. Adjusted operating income fell 42% to $39.5 million, and adjusted EBITDA declined 26% to $93.6 million. Coty also agreed with Kering on an early transition of the Gucci Beauty license, receiving $250 million at signing and up to $180 million more by September 30, 2027.
Luxury brand sales in China fall over 10% after government taxes overseas wealth
Sales of 25 major luxury brands in China fell more than 10% in July compared with the same period last year, after the Chinese government tightened controls on capital outflows and imposed taxes on overseas assets and investment gains. Brands under LVMH such as Louis Vuitton and Dior, as well as Kering's Gucci, Bottega Veneta and Balenciaga, all saw double-digit sales declines, while Hermes swung from growth to contraction, and Chanel and Prada also saw growth slow significantly. Jacques Roizen, co-founder of Foresight Performance Partners, said operators are seeing VIP customers spend more cautiously after the wealth effect diminished, coupled with a tougher tax environment for high earners. The impact has also spread to Macau, where casinos reported June and July revenue fell more than the market expected, as high rollers travelled less and reduced their betting limits.
Kering closes at least 217 stores in 18 months, targets 100 net closures for 2026
French luxury group Kering has closed at least 217 stores over the past 18 months, with 84 net closures in the first half of 2026 alone, reducing its total store count to 1,635. The 84 net closures represent a 5% reduction of its directly operated stores as of December 31, 2025, and are part of the 100 targeted closures for the 2026 full year. The store rationalization comes as the company works to improve sales density and recover from a 46% drop in operating income, with revenue of €7.22 billion in the first half of 2026, down 3% on a reported basis but returning to growth in the second quarter. Kering also sold its beauty division to L'Oréal for $4.7 billion and acquired jewelry manufacturer Raselli Farco as part of a broader recovery strategy.
Dow Plunges 1,153 Points After Fed Holds Rates Steady
US stocks closed sharply lower, with the Dow Jones Industrial Average tumbling 1,153 points, or 2.19%, after the Federal Reserve voted to keep its policy rate at 3.50% to 3.75%. Three of the 12 voting members on the FOMC dissented in favor of a quarter-point rate hike. Fed Chair Kevin Warsh said the committee stands ready to act if necessary. AI-related chip stocks extended their decline, and investors awaited earnings from Microsoft and Meta Platforms. Brent crude oil surged nearly 8%, breaking above 90 dollars a barrel, after President Trump signaled a forceful response to Iran. The yield on the 10-year US Treasury note jumped 7 basis points to above 4.67%, while the 30-year yield surged 10 basis points to above 5.2%, its highest level since 2007. Vertiv shares tumbled 17% after revenue missed estimates, while Ford Motor gained 2.1% after raising its full-year profit forecast for the second time. European markets closed slightly lower, with the STOXX 600 index down 0.29%. Luxury goods stocks fell 2.4%, led by Hermes, which dropped 11% on a lack of recovery signs in the China market, while Kering surged nearly 17% after Gucci sales fell less than expected.
European stocks close lower, luxury goods sector drags market sharply
European stock markets closed lower on Wednesday, with the STOXX 600 index falling 0.29% to 645.01 points, snapping a three-day winning streak. The luxury goods sector tumbled 2.4%, the steepest decline among industry groups, after mixed earnings from French luxury companies. Kering shares surged nearly 17% after Gucci sales fell less than expected, while Hermes shares slumped 11% amid no signs of recovery in the Chinese market. The technology sector fell 0.4%, extending losses for a third straight day, pressured by ASM International which dropped 4.8% despite a positive earnings outlook. The energy sector gained 2.2%, tracking Brent crude oil prices which jumped nearly 8% to breach 90 US dollars per barrel, as tensions in the Middle East flared up again. Investors are also watching the Federal Reserve meeting outcome and earnings from US tech giants such as Microsoft and Meta, which will report after the US stock market closes.
European Markets Dip Overall Despite Oil Stock Gains on Middle East Tensions
European markets fell back on the 29th, as surging crude prices driven by renewed large-scale airstrikes in the Middle East boosted oil stocks, while caution ahead of US monetary policy decisions and earnings from major tech firms weighed on the broader market. London's FTSE 100 extended gains, supported by oil stocks, hitting a new intraday high, but the mid-cap FTSE 250 slipped 0.03%. The STOXX Europe 600 fell 0.29%, snapping a three-day winning streak, with luxury brand stocks sold off. Hermès tumbled 11.0%, while Kering surged 16.9%, highlighting a sharp divergence. In eurozone bonds, Germany's 10-year yield rose 4 basis points to 3.148%, its biggest jump in about two weeks, as higher oil prices stoked inflation concerns. In currencies, the euro traded at 1.1382 dollars, and the dollar at 163.84 yen.
KER.PA · Geopolitics · Positive Kering surged 16.9% as oil stock gains on Middle East tensions boosted the broader market, but the article does not explain a specific driver for Kering's rise; the surge is likely due to company-specific factors not detailed here.
RMS.PA · Demand · Negative Hermès tumbled 11.0% amid a sell-off in luxury brand stocks, suggesting weak demand or negative sentiment for the luxury sector.
L'Oréal reports 6.5% adjusted like-for-like sales growth and record 21.3% operating margin in first half of 2026
L'Oréal posted strong first-half 2026 results with adjusted like-for-like sales growth of 6.5%, significantly outpacing the global beauty market. Sales reached 23.77 billion euros, up 6.8% like-for-like and 5.8% reported, while operating margin hit a record 21.3%, up 20 basis points, even as brand fuel investment rose 70 basis points. Net profit excluding non-recurring items grew 4.7% to 3,959.6 million euros, and all divisions and regions contributed to growth, led by SAPMENA-SSA and a recovering North Asia. The company also announced a 50-year exclusive worldwide beauty licence with Kering for the Gucci brand, effective 1 July 2027.
Kering Shares Surge 15% as Gucci Turnaround Gains Traction
Kering shares soared 15 percent to an intra-day high of 289 euros after the French luxury group's second-quarter results indicated its turnaround plan is gaining traction. The better-than-expected performance of star brand Gucci, which posted a 2 percent organic sales drop, prompted analyst upgrades from HSBC, Bernstein, RBC, and others. HSBC upgraded Kering to buy and raised its target price to 340 euros, while Bernstein lifted its target to 270 euros, citing Gucci's revised pricing strategy and new creative direction under Demna. CEO Luca de Meo noted that Gucci has repositioned some products after prices went too far in certain categories, and leather goods returned to growth in the quarter. By contrast, Hermès International fell more than 12 percent as markets anticipated a normalization in its growth rates.
Luxury brands and automakers signal consumer weakness from China
European luxury brands and automakers are signaling diverging fortunes amid consumer weakness in China. BMW, Audi, Volkswagen, and Porsche are struggling as Chinese consumers opt for cheaper, better domestic alternatives, while heritage luxury names like LVMH and Kering are holding up better. Ferrari and Rolls-Royce have seen China sales fall but not as sharply as mass-premium auto brands. Hermez said price hikes in 2027 are going to be smaller than this year, which weighed on its shares, while Kering's 1% second-quarter revenue rise was enough to boost its stock.
Gucci comparable sales beat estimates, signaling progress in Kering turnaround
French luxury group Kering reported a 2 percent rise in second-quarter revenue on a currency-adjusted basis, slightly ahead of analyst forecasts. Comparable sales at flagship brand Gucci fell 2 percent, also beating expectations. While it marked a twelfth straight quarterly decline, the rate of contraction narrowed from the previous quarter. The results are seen as an early sign that CEO Luca Demeo’s turnaround plan is gaining traction, and Kering shares jumped 11 percent in early trading on the 29th. HSBC analysts upgraded the stock from hold to buy, noting that Gucci is focusing on the right priorities to win back aspirational customers.
KER.PA · Capital · Positive Kering reported Q2 revenue and Gucci comparable sales that beat estimates, and HSBC upgraded the stock, driving shares up 11%.
Jewelry business becomes luxury brand star as fashion sales remain sluggish
The jewelry business is emerging as a key growth driver for the luxury goods industry, as fashion sales continue to slow and Middle East conflicts weigh on consumer purchasing power. Analysts at Vontobel note that jewelry consistently delivers growth and boasts standout margins relative to its business size. Carole Madjo, head of European luxury goods research at Barclays, says consumers are growing tired of high-end fashion that lacks novelty, while the sustained rise in gold prices is drawing more attention to jewelry as an investment asset. This trend is reflected in the results of Richemont, owner of Cartier and Van Cleef & Arpels, whose jewelry sales surged 24 percent in the quarter ending June, far exceeding analyst expectations. Meanwhile, LVMH, owner of Bulgari and Tiffany, is also expected to post stronger performance in its watches and jewelry division. Barclays has raised its growth forecast for LVMH's watches and jewelry business in 2026 to 8 percent from 7 percent, well above the 3 percent growth rate in 2025. This division is LVMH's third-largest business unit, accounting for 13 percent of its total revenue of 81 billion euros in 2025. Kering, owner of Pomellato and Boucheron, disclosed in April that its jewelry sales rose 22 percent in the first quarter year-on-year, the highest growth rate among all its businesses. Madjo adds that even brands with strong fashion and leather goods heritage, such as Hermès, Prada, and Gucci, are placing greater emphasis on jewelry, as it is a category delivering standout growth at this time. The market is watching earnings announcements from major luxury goods makers this week, with LVMH reporting on Monday, July 27, followed by Kering on Tuesday, July 28, and Hermès on Wednesday, July 29.
Japan's Luxury Jewelry Sales Hit Record High as Weak Yen Fuels Demand
Japanese luxury jewelry sales reached a record high in the first half of 2026, driven by domestic consumers seeking stores of value amid a weak yen and rising living costs. Sales of gems, precious metals and artwork at Japan's department stores rose 19% year over year to 330 billion yen, or about $2 billion, the highest for the period since records began in 2008. This growth far outpaced the 3.2% increase in overall department-store sales, while duty-free sales also rose 3.2%, indicating domestic shoppers were the main force. The yen trades near 164 per dollar, its weakest since the 1980s, and core consumer prices excluding fresh food rose 1.6% in June. Tokyo-based jewelry maker Happiness and D has shifted more of its business toward jewelry, with its president noting it is becoming more common for consumers to hold 5% to 10% of their assets in gold rather than cash. Bloomberg Intelligence analyst Catherine Lim observed that Japanese consumers are increasingly choosing branded jewelry over handbags as higher living costs make them more selective. Luxury groups with strong jewelry portfolios are benefiting: Richemont, owner of Cartier, reported a 20% year-over-year sales increase in its latest quarter, with Japan delivering the strongest regional performance led by jewelry, while Kering reported a 57% increase in Japanese jewelry sales during the first quarter even as its fashion and leather-goods business in the country declined 14%.
Prada tops BofA luxury brand ranking in first half of 2026
Prada, Michael Kors, and Alaïa recorded the strongest combined digital brand rankings among soft-luxury names in the second quarter, according to Bank of America's latest Brand Leading Indicator. The indicator ranks 43 soft-luxury brands based on social media followers, online searches, and website traffic, with momentum weighted at 60% and digital presence at 40%. Prada ranked first overall, followed by Michael Kors and Alaïa, while Michael Kors led three-month momentum after Google searches surged from a low base, lifting it from 33rd place in the first quarter. Prada and Alaïa were identified as the strongest brands in the first half of 2026, maintaining consistently high positions across both quarters. Chanel showed the biggest improvement late in the period, climbing from 10th in April to first in June as interest grew around Matthieu Blazy's collection, with Alaïa and Coach ranking second and third for June. Gucci's quarterly momentum ranking improved by 20 places to sixth, supported by stronger US website traffic, online searches, and promotional events, while Saint Laurent rose five positions to 16th, though fellow Kering brand Balenciaga dropped from 13th to 35th. Among LVMH brands, Loro Piana returned to the top 10 at seventh, Louis Vuitton climbed to 10th from 28th, and Dior finished 31st after Chinese search activity weakened. Swatch led hard luxury, helped by online interest surrounding its Royal Pop pocket watch collaboration with Audemars Piguet, with Jaeger-LeCoultre and Tissot placing second and third. Digital engagement across the soft-luxury sector increased 18% year over year, marking a fifth consecutive quarter of acceleration, as Google searches rose 47%, website traffic grew 39%, and Chinese Baidu activity remained down 18%. Excluding unusually strong Google search figures, overall online activity still improved by 7 percentage points from the first quarter, supporting expectations for continued luxury demand recovery led by the US and South Korea.
1913.HK · Demand · Positive Prada ranked first overall in BofA's brand ranking, indicating strong digital engagement and consumer interest.
UHR.SW · Demand · Positive Swatch leads hard luxury ranking, driven by online interest in Royal Pop pocket watch collaboration with Audemars Piguet.
CDI.PA · Demand · Negative Dior finished 31st in soft-luxury ranking, with Chinese search activity weakening.
KER.PA · Demand · Neutral Kering brands Gucci improved (up 20 places) and Saint Laurent rose 5, but Balenciaga dropped from 13th to 35th.
MC.PA · Demand · Positive LVMH brands Loro Piana returned to top 10, Louis Vuitton climbed to 10th from 28th, though Dior fell.
Audemars Piguet · Demand · Positive Audemars Piguet's collaboration with Swatch on Royal Pop pocket watch boosts its brand visibility and digital engagement.
Kering has appointed Romain Spitzer as Chief Executive Officer of Bottega Veneta, effective September 1, 2026. Reporting to Kering CEO Luca de Meo, Spitzer will be based in Milan and join the Group’s Executive Committee. He brings more than thirty years of international luxury experience, most recently serving as President and CEO of Fragrance Group LVMH Beauty. Spitzer will focus on enhancing the House’s desirability, deepening client connections, and driving retail excellence across markets.
Kering’s Gucci Beauty Deal with L’Oréal Sparks Valuation Debate
Kering has drawn fresh attention after Gucci signed a fifty-year exclusive beauty license with L’Oréal, shifting future fragrance and cosmetics development and distribution to the French beauty group. The deal arrives as Kering’s share price is under pressure, with a year-to-date decline of 19.30% and a three-year total shareholder return down 46.52%, though the one-year total shareholder return of 20.91% highlights volatile recovery efforts. Analysts’ consensus price target is €282.46 per share, implying about 13% upside from the last close of €245.80, but targets range from a bullish €360.00 to a bearish €175.00. In contrast, a Simply Wall St discounted cash flow model estimates a fair value of €237.37, suggesting the stock is slightly overvalued at current levels.
KER.PA · Demand · Positive Gucci's 50-year beauty license with L'Oréal secures long-term revenue from fragrance and cosmetics, boosting demand for Kering's brand licensing.
OR.PA · Demand · Positive L'Oréal gains exclusive rights to develop and distribute Gucci beauty products, expanding its luxury portfolio and driving future sales.
Coty to Receive $400 Million as Gucci Beauty License Ends Early
Coty has agreed to exit its Gucci beauty license one year early, securing a $400 million payment from Kering. The early termination allows L'Oreal to begin selling Gucci beauty products under a 50-year exclusive license starting July 2027, with L'Oreal covering about 70% of Coty's early redemption costs. Kering will also purchase some Gucci beauty inventory separately from the $400 million payment. Coty plans to use the proceeds to reduce debt and invest in its core prestige fragrance and beauty portfolio. The deal comes as Kering continues to review Gucci's fashion operations under new CEO Luca de Meo.
Edelson Lechtzin LLP Investigates Kering Over Unrefunded Tariff Price Hikes
Edelson Lechtzin LLP is investigating potential class action claims against Kering S.A., the owner of luxury brands including Gucci, Yves Saint Laurent, and Balenciaga, over whether it raised retail prices to pass along Trump administration tariffs to consumers and then failed to refund customers after the U.S. Supreme Court struck down those tariffs as unlawful on February 20, 2026. The investigation examines whether Kering kept the higher prices collected from shoppers while also being eligible to recover the same tariff payments from the federal government, a potential double recovery at consumers' expense. Consumers who purchased products from Kering brands such as Gucci, Saint Laurent, Balenciaga, Bottega Veneta, Alexander McQueen, Creed, and Maui Jim during the tariff period may be entitled to a refund. The firm is urging affected consumers to check their receipts and contact the firm to learn about their rights.
CAC 40 Climbs 0.5% On Lower Oil Prices, Soft Inflation Data
French stocks advanced on Tuesday, with the CAC 40 index rising 41.94 points or 0.5% to 8,409.27 by late morning. The gains were supported by lower oil prices, a slowdown in French inflation to 1.8% in June from 2.4% in May, and expectations that the European Central Bank will hold off on rate hikes. ECB Chief Economist Philip Lane noted at the Sintra Forum that second-round effects from higher energy prices may take time to materialize and that policymakers are not committing to a specific rate path. Among individual stocks, Schneider Electric led the advance with a 2.9% gain, while Kering fell 4.5%.
KER.PA · Demand · Negative Kering fell 4.5% as the article highlights it as a notable decliner, likely due to weak luxury demand or company-specific issues.
SU.PA · Demand · Positive Schneider Electric led the advance with a 2.9% gain, supported by lower oil prices and soft inflation boosting industrial demand.
Saks emerges from bankruptcy as Exemplar Luxury Group with leaner store footprint
Luxury retailer Saks Global announced it has exited bankruptcy and will now operate under the new name Exemplar Luxury Group, focusing on its Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman brands. The restructuring eliminated 75% of its previous debt and reduced its store count to 49 locations after closing 62 off-price stores, including 57 Saks OFF 5th and all five Neiman Marcus Last Call stores, as well as 12 Saks Fifth Avenue and three Neiman Marcus locations. The company also ended its partnership with Amazon during the process. Saks had filed for bankruptcy in January with $3.4 billion in debt, including over $337 million owed to suppliers like Chanel and Gucci-owner Kering, and received approval for a $1 billion bankruptcy loan in February. The new board will include representatives from investment firms Pentwater Capital Management and Bracebridge Capital.
France
