Kering's Gucci Lags Big Competitors and Other Kering Group's Brands in Q1; FVE Maintained

We are maintaining our fair value estimate of EUR 590 per share for narrow-moat Kering as the company reported solid growth of revenue in the first quarter. Revenue was up 21.4% on comparable basis versus 11% in our full-year forecasts, helped by easy comparison in Western Europe, which was still affected by lockdowns in the first quarter of 2021 (group retail sales were up 75% in the region). North America continued to deliver very strong results, with revenue up 42% for the group, on retail basis. Asia-Pacific was the only region that saw weakness in the quarter (flat on retail basis), negatively affected by COVID-19 restrictions in China.