RBC Expects Kering Investors to Focus on Gucci's September Exit Rate in Q3; Price Target Down

04:30 AM EDT, 09/23/2026 (MT Newswires) -- RBC Capital Markets anticipates that Kering (KER.PA) investors will be "keen to hear" Gucci's September exit rate during third-quarter results to assess the luxury goods giant's trajectory. "3Q26 is unlikely to be a pivotal print for Kering, as the commercial appeal of the Primavera collection is narrower than what is expected in 4Q26 with Gucci Core which has broader appeal, the new store concept will start to appear and brand/product marketing is expected to ramp up. Nonetheless, we still expect some modest sequential improvement in 3Q for Gucci (-1.4% organic)," analysts said Tuesday in an earnings preview note. Ahead of the company's third-quarter earnings on Oct. 22, the research firm forecasts Kering to report group revenue of 3.38 billion euros, up 1.5% organically. Within the group, fashion and leather sales are projected at 2.8 billion euros, up 0.6% on an organic basis, while Gucci revenue is expected to decline 1.4% organically to 1.33 billion euros. Meanwhile, RBC lowered its full-year 2027 and 2028 organic revenue growth assumptions by 100 basis points to 3.9%, while trimming EBIT margin and EBIT expectations across both years. Analysts also cut the sector perform-rated stock's price target to 280 euros from 350 euros.