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Bank of America Securities Sticks to Its Sell Rating for Kering SA (0IIH)
Bank of America Securities Sticks to Its Sell Rating for Kering SA (0IIH)

Business Insider

time29-06-2025

  • Business
  • Business Insider

Bank of America Securities Sticks to Its Sell Rating for Kering SA (0IIH)

In a report released on June 26, Ashley Wallace from Bank of America Securities maintained a Sell rating on Kering SA (0IIH – Research Report), with a price target of €165.00. The company's shares closed yesterday at €181.12. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Wallace is ranked #4132 out of 9622 analysts. In addition to Bank of America Securities, Kering SA also received a Sell from J.P. Morgan's Chiara Battistini in a report issued on June 25. However, yesterday, Citi maintained a Hold rating on Kering SA (LSE: 0IIH). The company has a one-year high of €420.21 and a one-year low of €149.78. Currently, Kering SA has an average volume of 181K.

Kering issues new 750 million euro bond
Kering issues new 750 million euro bond

Fashion United

time21-05-2025

  • Business
  • Fashion United

Kering issues new 750 million euro bond

The French luxury group Kering SA has obtained fresh capital by means of a new bond. The bond, with a volume of 750 million euros, has a term of four and a half years and an interest rate of 3.125 percent, the parent company of fashion houses such as Gucci, Saint Laurent, Bottega Veneta and Balenciaga announced on Tuesday. The issue took place as part of the group's 'active liquidity management' and enables the group to 'increase its financial flexibility,' Kering explained. The company expressed satisfaction with the response to the placement: 'The great success of this issue with bond investors underlines the market's confidence in Kering's credit rating,' it said in a statement. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@

Why are fashion labels ending discounts in China? Can this rebuild brand value?
Why are fashion labels ending discounts in China? Can this rebuild brand value?

The Star

time09-05-2025

  • Business
  • The Star

Why are fashion labels ending discounts in China? Can this rebuild brand value?

Some luxury labels are pulling back from steep markdowns in China, seeking to rebuild an image of exclusivity to lure back wealthy shoppers whose spending remains less affected by economic slowdown. None of the products sold by Kering SA's Balenciaga on Tmall, China's dominant e-commerce platform, were discounted in the first quarter of this year – or even during China's biggest annual online shopping festival in November – according to data consultancy Re-Hub. That's a marked contrast to the brand's average discount of about 41% on Alibaba Group Holding Ltd's-owned Tmall during the same periods the year before. Versace, set to become part of Prada SpA after a US$1.4bil (approximately RM6.1bil) acquisition, cut prices for an average of just 3% of its products on Tmall in the first quarter, compared to 12% in 2024 – and the discounts weren't as steep. Italian luxury house Valentino Fashion Group SpA also lowered the number of discounted products available on Tmall for January, and pulled markdowns entirely in February and March. The avoidance of discounts, which appear counter-intuitive given the market's sluggish demand, marks an about-turn in luxury labels' strategy in China. "It's a move from chasing traffic and short-term revenues to cultivating long-term brand affinity,' Re-Hub's chief executive officer Max Peiro said. "This shift is not merely operational-it's foundational. Brands are investing in relevance, desirability, and premium experiences to foster long-term loyalty.' Read more: Stakes are high for luxury fashion, as brands reshuffle their head designers Discounting is proving less effective in driving sales growth and risks undermining brand value, he added. Even the most exclusive premium fashion houses – including Hermes, Chanel and Louis Vuitton, which have typically eschewed online discounts – are stepping up efforts to maintain their exclusive images among wealthier Chinese, including offering more VIP-only events and shopping experiences like in-store museums. The pivot away from discounts comes as global fashion houses reshape their strategies in China, where a decades-long luxury boom driven by the middle class is coming to an end as a persistent property slump and anemic post-Covid economic growth turns once-spendthrift Chinese shoppers into cost-conscious bargain hunters. The country's middle class – a pillar of the world's luxury market – is turning to athleisure and cheaper dupes of the luxury brands it used to covet, or holding off on purchases at all. Their pullback helped lead to an up to 20% drop for China's luxury market sales last year, Bain & Co estimates. That's leading brands to shift their focus back to luring wealthier Chinese who'll still be willing to splash out despite the increasingly shaky consumer sentiment. Success in China is critical for luxury brands, which are also facing challenges in their other largest market – the US, where consumer sentiment has slumped to an almost five-year low amid uncertainty from Donald Trump's tariffs. Balenciaga, Versace, Valentino and Alibaba didn't respond to requests for comment. Tmall's changing role The changing pricing strategy also reflects luxury labels' new understanding of Tmall and the crucial role it plays in shaping consumer perceptions about a brand in the mainland, said Jacques Roizen, managing director of China consulting at Digital Luxury Group. As Tmall becomes more important for sales, brands' pricing on the platform can help telegraph wider shifts in their China strategies. While ultra-premium brands including Hermes and Chanel still make most of their sales from physical stores, online channels are gaining increasing importance for lower-tier luxury labels. The ecommerce market accounted for 46% of China's total luxury sales last year and is expected to surpass offline sales in three to five years, according to consultancy Yaok Group. As products return to full price, pressure will grow for some labels over how to offload excess stock, after some of last year's deep Tmall discounts reflected panic over unsold inventory. Read more: Hermes overtakes LVMH to become the most valuable luxury fashion company And not all high-end brands are pulling back from sales – some, like Richemont's Chloe and Capri Holdings Ltd's Michael Kors, are offering markdowns on Tmall similar to those that were available in 2024. Chloe and Michael Kors didn't respond to requests for comment. Still, by curbing price cuts on the platform, a growing number of luxury brands are bringing their China pricing strategy more in line with their global approach – where they clear stock via discreet, private sales events that take place only limited times a year and there's little visible public discounting. "While smaller discounts may pressure short-term inventory clearance capabilities, the shift ensures a consistent brand message across all consumer touchpoints,' Roizen said. "Brands that adapt early to this strategy are likely to lead the market recovery.' – Bloomberg

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