Berenberg Cuts Estimates for Kering After 'Weak' Q3 Performance

02:27 AM EDT, 10/27/2026 (MT Newswires) -- Berenberg lowered its earnings projections for Kering (KER.PA), citing the French luxury goods company's "weak" third-quarter results, hit by a consumer demand slowdown in China and the US, and the research firm's "greater caution" on Gucci's recovery. "As we expected, Kering's Q3 results were a disappointing end to a polarised luxury reporting season, with absolute continuing to outperform aspirational luxury. Management is executing its turnaround plan at pace, but deteriorating consumer demand is delaying the payback. Current trading offers little reassurance and FY26 sales guidance has effectively been abandoned," analysts said Monday. While the quarter's group revenue of 3.35 billion euros broadly aligned with the expected 3.33 billion euros, the research firm noted that Gucci's 6% overall decline and a 9% drop in retail lagged consensus forecasts of a 5% fall and 6% decrease, respectively. Berenberg added that it sees "little evidence" of underlying demand recovery entering the fourth quarter as "weak traffic" remained the primary bottleneck in the third quarter. Against this backdrop, the research firm cut its sales, EBIT and EPS assumptions for Kering's full-year 2026 to 2028. Berenberg also trimmed the sell-rated stock's price target to 165 euros from 175 euros.