Buy Signal on Kering (KER-FR)

We had an Enter Long signal on August 27th 2020, triggered by our system on Kering (KER-FR) the French Luxury company.

Kering is a € 62.5 bn market cap and an international luxury group which grows a set of emblematic Houses in Fashion, Leather Goods, Jewelry and Watchmaking: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear. At the end of 2019, the Group had a network of 1,381 directly managed stores located in Western Europe (324), North America (228), Japan (220) and in emerging countries (609).

Kering reported Q2-2020 results above market expectations, thanks to more resilient margins supported by China, but also a restart in Japan and the USA. For 2020, Kering is expected to report revenues of € 13.2bn (versus 15.9bn in 2019) coupled with a 23.4% operating margin (versus 30 .1% in 2019). The asian recovery remains key as the region represent 42% of sales.

Short term catalyst: Consumer recovery in Asia.

This signal looks consistent with the positive momentum on the consumer discretionary sector.