06:52 AM EDT, 10/06/2026 (MT Newswires) -- RBC Capital Markets tweaked its model for Kering (KER.PA), lowering its third-quarter earnings forecasts for the luxury goods giant amid expectations of sequential organic revenue deceleration for Gucci and the broader fashion and leather goods division. "Kering is facing the same luxury demand and macro headwinds in 3Q26E as peers. We anticipate sequential 3Q deceleration to -2% for F&LG and-5% for Gucci organic. Also, similar to peers, we view Kering consensus FY27E estimates as too optimistic which may lead to further downward revisions, given implied acceleration baked into estimates for Kering. RBC EPS is 8% below consensus. Market conditions are not sufficiently favourable, and it's too early to have any real visibility on Gucci's potential for now," analysts said Monday after a sell side group call. Ahead of Kering's earnings report on Oct. 22, the research firm forecasts flat organic revenue for the group at 3.32 billion euros. The non-fashion and leather goods business is expected to grow 1% organically to 1.45 billion euros, while fashion and leather goods revenue is projected to fall 2% to 2.7 billion euros. Additionally, analysts trimmed their full-year 2026 organic revenue growth forecast to 1.1%, amid an anticipated "flattish" fourth quarter at Gucci. Meanwhile, the 2026 EPS estimate was lowered by 7% to 6.41 euros to account for a revised lease interest expense calculation. RBC also cut the sector perform-rated stock's price target to 260 euros from 280 euros.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.