On Kering, HSBC’s analysts say they “no longer believe in a turnaround of the business in 2025”. “We now expect the turnaround of the main brand Gucci to occur in 2026, with 7% organic growth after almost four years of sales decline and ebit margin up 250 basis points (bp) y-o-y from a trough margin in 2024 and 2025 of 20.6%.”
While there was no growth for the global luxury sector in 2024, HSBC Global Research says it is “time to be positive” on names like Prada, LVMH Moet Hennessy Louis Vuitton and Hermès.
In fact, HSBC has upgraded most names to “buy”, with the exception of Paris-listed Kering and Switzerland-listed Swatch, which are still on “hold”.
