Luxury goods conglomerate Kering has made a strategic move by announcing plans to repurchase up to 1 percent of its shares within the next year. This decision showcases the company’s confidence in its future prospects and financial health. Kering, a French powerhouse known for iconic brands like Gucci and Saint Laurent, stated that the buyback program would not exceed 300 million euros ($342 million) and that the price per share would not go over 480 euros.
Following the news of the share repurchase, Kering’s stock experienced a modest uptick of 0.7 percent to 379.90 euros during early morning trading. Despite this increase, the stock price has seen fluctuations throughout the year, with a 4 percent overall rise in 2018 but a decline from its peak of approximately 522 euros in June.
In a positive development for the company, Kering recently reported robust demand for its Gucci handbags in the third quarter, demonstrating resilience in the luxury sector amid concerns about slowing growth. This success in sales has not only reassured investors about Kering’s performance but also instilled confidence in consumers regarding the strength and appeal of the company’s luxury brands.
With its impressive portfolio of prestigious labels and a solid market presence, Kering continues to be a major player in the luxury goods industry. The decision to repurchase shares reflects Kering’s belief in its long-term growth prospects and financial stability, further solidifying its position as a leading force in the competitive world of luxury fashion.
Sources:
1. Reuters – Kering announces share buyback program
2. Business of Fashion – Kering’s share repurchase and resilience in the luxury industry
