开云集团：寻找意义

Kering: In search of meaning thought.Amajor event with>200 attendees.We wish othercoveragecompanies tookthetime and effort, as Kering did, to open up to the market. +41582723126luca.solca@bernsteinsg.com cost efficiency, and speed to market fronts. The spirit seems to be"let's work onwhat we can control"and"let's not tolerate sub-standard performance anywhere", in abroad-basedefforttoprofessionaliseandrationalise processesand organisation.Centralfunctionshavebeen createdto contributetothis end. +4420 7170 0540maria.meita@bernsteinsg.com +44 20 7676 6822yi-peng.khoo@bernsteinsg.com The new Kering spirit is'we work hard'and'we aim high'.The CEO provided anexample of the stamina required, giving a 3.5 hours'standing presentation without apause. He mentioned 400 pages thick highly granular brand plans. Insiders report of a"Marchionne-style"environmentfast-paced and outputfocused.Plenty of goals and goodintentions were voiced, on which one wouldn't disagree in principle. Eric Chen, CFA+85221232628eric.chen@bernsteinsg.com Specialist Sales Alix Turner+44 20 7762 4044alix.turner@bernsteinsg.com A shortcoming we noticed is that all of this seems self-centred on Kering.Theunderlying idea seemingly being"Gucci is very well known, if we work well, consumers willcome back"Wefound little to understand howthe Gucci"spiciness"could be socially andmid-1Os with"LGBTQ prominence"and A.Michele. Missing a vision on howa brand DNA could acquiremeaning bycrediblylatchingcoldorbarefooted.Desirecomesfromidentificationwiththecharacters,attitudesandmessagesbrandsareprojecting.Productaestheticsandmarketingcommunicationneedto consistently articulate this meaning forall to work (see Global Luxury Goods: Brands-What do you mean?). The good news is that while we didn't get much on this from De Meo or Bellettini,Demna provided interesting ideas. First, kudos for having designers mingle withinvestors and analysts. Itis rare and highly appreciated.Second, Demna seems sharp andvery much"gets"the problem above. He is working on"confident and flirty" to hopefully finda newreasonwhyGucci could be relevantagainthesedays. We wonderif Demna hadn't already hit gold with"La Famiglia"(onlytoput the ideaback on the shelf). Demna says"La Famiglia"was an exercise to learn about Gucci. But ifnarcissistic individualism magnified by social media is a core plank of our current zeitgeist,couldn't consumers find the"extreme version of themselves"in"La Famiglia"characters?And couldn't this be a way for Gucci's nature to become relevant again? If the job was easy, everybody could do it. Finding a current, credible, relevant andcompetitively advantaged meaning forGucci is noteasy.It seems it is bound totake time.Until then,we see little chance of multiple expansion andshareprice outperformance.intentions. With all we know about what they pave.. visible momentum in social media (Global Luxury Goods: Chinese and Western Social Media Boxing Ring 1Q26 -An industry inchurn),littletoreportonin-storetraffic(Global LuxuryGoodsMega-transect:StrongLunarNewYear2O26foottrafficpointstoa gradual recovery),mixedfeedback onthemaidenshow (Global Luxury Goods:SS26FashionWeek Debrief-standingovationsatChanelandDiorandKering&Gucci:Demna'sshowmixed,butmoregoodthanbad),andatleast1OOstorestobeclosedin2026?Thechances areveryslim,we would argue. Management seems intent onfirstofall stemminglosses,cutting costsandbeefingupthebottomline.Thiscompounds the brilliant actions that Luca De Meo has triggeredtorescue the balance sheet and reduce debt exposure.Thiswillguarantee good cash flowand dividendsfor shareholders.Amanna for Artemis,given its own stretched balance sheet(Global Luxury Goods: A review of controlling shareholders -Part 1 France). But this is unlikely to make the broader marketfind reasons to believe in mean reversion -as some of the investors are currently doing. The consequence is likely to be a moremuted multiple. We continue to value Keringon a target 1.7Ox relative P/Emultipleto the MSCI Europe, equivalent to a 21.5xNTM+1P/E(justaboveKering's10Yaverage).WemaintainourMarket-Performrating,andPTof220.00.AndwaitforthefirstsignsthatDemnacould beproducinghis magic. attendees. We wish other coverage companies took the time and effort, as Kering did, to open up to the market. marketfronts.The spirit seems to be"let's work on what we can control"and"let's not tolerate sub-standard performanceanywhere',inabroad-basedefforttoprofessionaliseandrationaliseprocessesandorganisation.Centralfunctionshavebeencreated to contribute to this end. improvements and success at Kering.Centralfunctions havebeencreatedto contributetothisend The new Kering spirit is'we work hard'and'we aim high: The CEO provided an example of the stamina required, giving aa"Marchionne-style"environmentfast-paced and output focused.Plenty of goals and good intentions were voiced,on whichone wouldn't disagree in principle. A shortcoming we noticed is that all of this seems self-centred on Kering.T