Kering joins Europe’s biggest and best in STOXX 50 Index
French luxury giant Kering passed a major milestone at the end of September, when it was included in the Euro STOXX 50 Index. The STOXX 50 is one of the Euro area’s major indexes, which is comprised of the 50 largest listed Eurozone stocks “in terms of free-float market capitalisation”. The inclusion signifies a strong run of success on Kering’s part, perhaps most notable when it reported a massive 185% hike in profit for the first half of this year.
Kering’s share price has appreciated by 27% year to date
SOURCE: Yahoo Finance
The group’s CEO, Francois-Henri Pinault, made the following comment on the back of the news, where he chose to praise the values that are locked into Kering’s DNA:
“I am delighted to see Kering’s shares listed on the Euro STOXX 50. The fact that the group founded by my father in 1963 is now one of the fifty largest market capitalisations in the eurozone is a recognition of the entrepreneurial values that have always guided us. This symbolic step illustrates our increasing value creation and the relevance of our development model. It demonstrates the confidence of the market in our ability to achieve profitable, sustained and consistent organic growth.”
Kering is one of luxury’s biggest players, and it’s riding a wave of incredible success. The company’s flagship brand, Gucci, has gone from strength-to-strength over the last year, and it has a number of smaller brands that are great growth opportunities. It’s also seen sustained interest in China, which (trade war worries aside) remains the driving force behind global luxury.
Dominion holds Kering in its Global Trends Luxury Fund.
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