European luxury stocks moved higher on Tuesday, supported by signs that trading at sector heavyweight Kering (EU:KER) held up better than expected in the fourth quarter, easing some concerns around the pace of its turnaround.
Shares in fellow luxury names such as Salvatore Ferragamo (BIT:SFER) and Burberry (LSE:BRBY) were up more than 2% by mid-morning in Europe. Rival group LVMH, the diversified luxury conglomerate spanning fashion, wines and spirits, also edged higher, gaining around 0.8%.
Kering itself led the gains, with its shares jumping more than 10%, extending a strong rally that began after the company announced the appointment of Luca de Meo as chief executive last June.
The former Renault boss has been brought in to drive a broad restructuring of the group. Since taking the helm, de Meo has focused on reducing debt, streamlining governance and sharpening the portfolio. In October, Kering agreed a €4bn deal to sell its beauty business and certain brand licences to L’Oréal.
In the fourth quarter — de Meo’s first full period as CEO — Kering reported a 3% decline in currency-adjusted sales year on year. That result compared favourably with a 5% drop expected by analysts, according to Visible Alpha forecasts cited by Reuters.
Addressing analysts and investors, de Meo reiterated his ambition to return Kering to growth in 2026 and to improve margins across all of the group’s brands.
Investor focus is now shifting to late February, when Gucci’s new creative director, Demna, is due to present his first collection at a Milan show. The performance of Gucci remains critical for Kering, as the brand accounts for a substantial share of the group’s profits.
Gucci’s revenue fell 10% in the quarter, marking the tenth consecutive quarterly decline. However, the drop was less severe than many in the market had anticipated, Reuters noted, helping to underpin the positive reaction across the luxury sector.
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