S&P Global revises credit outlook for Gucci owner Kering to negative from stable
In a report on Kering's investment grade credit rating, S&P analysts highlighted, opens new tab weakening consumer demand for the French group's luxury apparel across key markets, most notably a 22% year-on-year decline in revenue in the Asia-Pacific and China.
The analysts added that Kering had underperformed peers such as LVMH (LVMH.PA), opens new tab, Dior (DIOR.PA), opens new tab and Hermes (HRMS.PA), opens new tab so far this year. Sales of Kering's flagship Gucci brand, which made up over half of its core earnings (EBITDA) last year, fell by a quarter in the first half of 2025, the analysts added.
S&P maintained Kering's long-term issuer credit ratings at BBB+, which lies toward the lower end of the high-grade ratings spectrum.
"The negative outlook reflects Kering's reduced rating headroom stemming from ongoing pressures in its operating performance, execution risks associated with the company's turnaround initiatives, amid a subdued industry environment," the analysts wrote.
Kering in June announced it appointed as its new CEO Luca de Meo, former CEO of French automaker Renault Group, who will take office in mid-September.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
an hour ago
- BBC News
World Business Report US-China tariff deadline extended by 90 days
President Donald Trump has signed an executive order extending tariffs on China for another 90 days. Chip giants Nvidia and AMD have agreed to pay the US government 15% of Chinese revenues as part of an "unprecedented" deal to secure export licences to China. And remember that distinctive sound of dialling in via the internet in the early days of connecting? Well. It's days are numbered….Yahoo has announced that it will discontinue AOL Dial-up Internet on September 30th.
Daily Mail
2 hours ago
- Daily Mail
Trump caves handing China another 90-day tariff extension before threatened doomsday
President Donald Trump extended a tariff deadline on Chinese goods by another 90 days less than 24 hours until the new trade 'doomsday' hit. He reportedly signed an executive order to pause a scheduled hike as talks between China and the United States continue. The president signed an executive order to postpone the tariff deadline, according to a report from CNBC citing a White House official one day before it was scheduled to snap into place. Currently, Chinese imports are subject to the president's 10 percent baseline tariffs with an additional 20 percent tariff. The president threatened a massive 245 percent tariff on Chinese goods in April, but has extended it as long as talks and negotiations continue. United States and Chinese officials spent two days in Stockholm in late July emerging in a settlement to extend the ongoing trade 'truce' between both countries. 'They've been dealing quite nicely — the relationship is very good with President Xi and myself,' Trump said. The new deadline is set for early November. 'Tariffs are making our Country Strong and Rich!!!' Trump boasted on social media on Monday. President Trump and Chinese President Xi Jinping are also in talks to meet to wrap up trade talks and set a deal as negotiations continue. The two leaders last spoke on the phone in June. Both sides are optimistic that they can wrap up talks in late October, according to Treasury Secretary Scott Bessent in an interview with Nikkei Asia. Trump continues using tariffs to force foreign countries into negotiations, even as some of the deadlines keep getting extensions depending on whether progress is made. Tariffs on over 60 countries went into effect at midnight on August 7th, following 18 weeks of tough negotiations. Trump allowed tariffs on Canada to jump to 35 percent, even as the president granted Mexico a 90-day extension. India now faces an additional 25 percent tariff scheduled for August 27 on top of a 25 percent tarrif set on August 1. Brazil also has a 50 percent tariff on many of its products. Other countries that have yet to make a trade deal with the United States include Switzerland, South Africa, Brunei, Cambodia, Bolivia, Ecuador, Iceland, Nigeria, Sri Lanka, New Zealand, Turkey, Norway, Iran, North Korea and Russia. Trump announced Monday afternoon there would be no tairrfs on Swiss gold bars, after the price of gold spiked.
Times
2 hours ago
- Times
Trump extends deadline for higher tariffs on China by 90 days
President Trump has extended a deadline for higher tariffs on Chinese goods by 90 days, a White House official said on Monday. Tariffs on China were due to return to triple-digit rates on Tuesday, in a move that threatened to cause turmoil for global supply chains. However, the president has allowed for further negotiations and a potential meeting with China's President Xi after signing an executive order. The order prevents US tariffs on Chinese goods from rising to 145 per cent. An escalation of trade tensions earlier this year rocked global financial markets, as US tariffs on Chinese imports reached 145 per cent in April, and China restricted access to critical materials for US manufacturers. In May, the two sides reached a 90-day truce, under which tariffs on imports from China were lowered to 30 per cent, while China lowered its rate on US imports to 10 per cent and resumed rare earth exports. Last month, top US and Chinese officials met in Stockholm for talks aimed at resolving the trade war between the world's top two economies. Trump said that Scott Bessent, the Treasury secretary, 'felt very good about the meeting'. However, no further breakthroughs or extensions to the tariff deadline were confirmed. Trump says he has a 'very good relationship' with China's President Xi XINHUA/ALAMY On Monday, Trump told a press conference: 'They've been dealing quite nicely. The relationship is very good with President Xi and myself.' • Can China outmuscle Trump to become the world's superpower? The president pushed for additional concessions on Sunday, urging China to quadruple its soybean purchases. However, analysts questioned the feasibility of any such deal. Trump did not repeat the demand on Monday. Washington has also been pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China. Ryan Majerus, partner in the international trade team at King & Spalding and a former US trade official, said the 90-day extension 'will undoubtedly lower anxiety on both sides as talks continue, and as the US and China work toward a framework deal in the fall'. He added: 'I'm certain investment commitments will factor into any potential deal, and the extension gives them more time to try and work through some of the longstanding trade concerns.' Trump also said on Monday that he would not impose tariffs on gold, ending days of speculation that the metal could be caught up in the global trade war. US Customs and Border Protection had posted a ruling on its website on Friday saying that Washington could place the most widely traded gold bullion bars in the US under country-specific import tariffs.
