Kering SA

KER position long Gavin Baker, Atreides Management

Thesis

Kering, particularly its Gucci brand, has a strong heritage and brand recognition that supports a return to higher profitability levels. The current margins are depressed, but the intrinsic value based on brand strength suggests that they will normalize, leading to attractive valuation multiples.

Did it work?

inconclusive confidence: low

Without specific price performance data or a defined time horizon for the thesis, it is difficult to assess whether the investment thesis has played out. The argument for Kering's brand strength and potential margin normalization remains valid, but without evidence of price movement or time elapsed, we cannot determine the outcome.

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