RBC Updates Kering Estimates After 'Difficult to Interpret' Q3 Results

06:33 AM EDT, 10/23/2026 (MT Newswires) -- RBC Capital Markets revised its forecasts for Kering (KER.PA) after the company posted "difficult to interpret" third-quarter results. "At the group level, revenues are in-line with consensus, whilst for Gucci, retail was softer than expected, and offset by outsized wholesale growth. This makes the starting point for 4Q, where accelerating newness from November (Gucci Core) as well as brand investments in marketing and store renovations, more challenging than we previously thought, and we reduce our 4Q Gucci retail estimate to -5% organic as a result (from -1% previously)," analysts said Friday. Kering's third-quarter revenue totaled 3.35 billion euros, down 1% on an organic basis. Meanwhile, Gucci reported 1.29 billion euros in revenue, marking a 6% fall on an organic basis and against the market expectation of a 5% decline. As such, RBC reduced its 2026 group organic growth estimate by 130 basis points to account for the Gucci retail miss. The research firm also trimmed its fourth-quarter forecast, partially offset by the "strong" wholesale performance. "The demand environment is challenging, which was always going to be a factor in Kering's equity story, even if it's outside of management's control. RBC EPS estimates are 7%/15% below consensus FY27E/28E," analysts added. RBC rates the stock at sector perform, with a price target of 260 euros.