Kering Leads Fashion Stocks Higher

Core Insights - Kering has experienced a positive momentum in the stock market under the new CEO Luca de Meo, who has been in the role since September 15 [1] - The company's shares rose by 8.7% to 344.95 euros, resulting in a market capitalization exceeding 42 billion euros, marking the best stock performance among 98 global fashion, luxury, and retail stocks tracked [2] - Gucci, Kering's largest brand, reported a 14% sales decline in the third quarter, which was better than the anticipated 15-16% drop and significantly improved from a 25% decline in the second quarter [2] Company Strategy - Kering is focusing on innovation and new product development at Gucci, leveraging the talent of the new creative lead, Demna, to drive improved sales performance [3] - The company is also working on enhancing its supply chain efficiency, which is expected to benefit overall performance [3] - De Meo has delayed the timeline for a potential acquisition of Valentino and has finalized a deal to sell Kering's beauty business to L'Oréal for 4 billion euros, which is anticipated to strengthen the company's balance sheet [4] Financial Performance - Since Luca de Meo took over, Kering's shares have increased by 52.9%, indicating strong market confidence in the company's direction [4] - Kering's total debt stands at 19.9 million euros, which includes over 6 billion euros in leases, highlighting the financial challenges the company faces [4]