PPRUF - Kering: How To Identify A Potential Turnaround?

2024-05-13 16:39:47 ET

Summary

• Kering, owner of luxury brands like Gucci, is struggling to keep up with the industry and is underperforming its competitors.
• The company's valuation is severely discounted compared to its sector, reflecting its underperformance.
• To identify a turnaround, investors should look for management and leadership changes, improvements in brand performance, and closing the growth gap with competitors like LVMH.

Kering ( PPRUF ), owner of Gucci, Balenciaga, Bottega Venetta, and other renowned luxury brands, has been struggling to keep up with the industry.

Driven by a mixed bag of inferior marketing, relatively high dependency on wholesale, lackluster designs, and complacent management, Kering has been underperforming luxury leaders and continues to bleed market share....

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