A drop in profits, leading the stock to fall to CAC40

We should not forget in France, KHOL which hides the performance of CAC 40 very well.

Kohl stands for the initials of the companies Kering, Hermès, L’Oreal and LVMH.

These are our luxury giants and like the American “tech” giants they say, profits are internationalized. They are made all over the world. These companies have become monsters of margins, turnover, resilience and diversification of their markets. The result? Exceptional and anti-fragile results. strong And for good reason. They are no longer dependent on one country, one currency, one economic policy or another. They are all over the world. They became the world.

It is for this reason that the performance of the stock market seems completely unrelated to economic realities.

However, if you look closely, the markets are indeed right, and so right that they destroy all stocks whose turnover or margins are falling.

We are in a market that values ​​every company’s performance.

Kering is having its worst day on the stock market, thanks to Gucci

It is in this context of market valuation that “ Shares of French luxury group Kering fell nearly 14% in early afternoon trading on the Paris stock exchange on Wednesday, and could suffer the worst session in its history, punished by the poor performance of its Gucci brand.

Kering warned on Tuesday that its turnover would fall “in the order of 10%” in the first quarter year-on-year, after its CEO Francois-Henri Pinault already described 2023 as “difficult”.

“This performance mainly reflects a more significant decline in Gucci, particularly in Asia-Pacific. Thus, Gucci’s turnover as of March 31 should be around 20% lower on a comparable basis. » (excluding space and exchange rate effects), the group said in a press release. »

In “the worst of the session, Kering shares fell 13.77% to 367.20 euros on the Paris stock exchange, a steeper decline than the dark days of March 2020 and October 2008.

The decline represents a 7 billion euro loss in capitalization for the luxury group. »

In a very high market that buys and evaluates abnormal performance, it turns out that the decline in the real economic performance of these securities is largely condoned by markets that leave no excuses.

Caring’s example here allows us to better understand the mechanics currently at work.

Despite the rise in rates, there is no crash, and I’ll explain all this to you in the next strategy file I’m writing for you on gold and… Stock markets that are both rising for you clear it all up.

It is already too late, but all is not lost.

Prepare yourself!