Kering stock plunges 8%, weighed down by Gucci

Shares of French conglomerate Kering (KER.FR), owner of such brands like Gucci and Yves Saint Laurent, plunged more than 8.0% to a three-and-a-half-month low as it said revenue for the whole group fell 8.2% in Q4. The COVID-19 pandemic has kept consumers from travelling abroad, dampening luxury sales in big shopping hubs like Paris, Milan and New York, although a rebound in demand in Asia has helped some high-end brands recover in recent months. By brand, sales at Gucci, which typically accounts for two-thirds of group revenue, was a particular disappointment, falling 10.3% from a year earlier in the fourth quarter while Yves Saint Laurent sales fell 14.9 %.The company did not provide precise guidance for this year but said that “if the current environment is marked by many uncertainties, the health crisis has not undercut the key drivers of growth in the global luxury goods business.”

Kering (KER.FR) stock launched today's session with a massive bearish price gap, below the lower limit of the triangle formation. Currently price is testing local resistance at €528.00. In case the stock fails to close above the aforementioned resistance, then downward move could be extended to the €507.25 handle or even €482.77 where lows from July are located. Source: xStation5