The Kering share price has imploded in the past few years as its sales growth waned in key markets, especially in China. It stock trades at €175, down from the 2021 high of €723. This decline has led to a substantial decline in market cap, which fell from €98.9 billion to €22 billion, or a €76 billion wipeout. 

Gucci sales continue plunging

Luxury goods sales have declined in recent years as the wealthy have scaled back their purchases. This slowdown occurred in most countries, particularly in China, a nation that has historically produced numerous millionaires and billionaires. 

Customers have also had to deal with a volatile stock and crypto market and high interest rates in key countries. In China, many of them dealt with the collapse of the real estate market that wiped out trillions in value. 

Most luxury goods companies have experienced decline during this period. For example, Aston Martin Lagonda, the manufacturer of high-performance vehicles, has had to raise cash several times to keep its lights on.

Burberry, the biggest luxury brand in the UK, has also come under so much pressure such that its stock has lost over 70% of its value in the past few years.

Kering, the parent company of Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga, Brioni, Creed, and Alexander McQueen, has been one of the most affected luxury goods companies.

Its woes are primarily because of Gucci, its biggest moneymaker that accounts for about 50% of its total sales. Its performance has contracted in the past few years, leading to several profit warnings.

Kering sales have plunged

Financial results released this week showed that the company’s first-quarter sales continued to worsen. 

Kering made €3.9 billion in Q1, down by 14% from the same period a year earlier. This decline occurred as its Asia-Pacific region declined by 25%, and those in Western Europe, North America, and Japan experienced double-digit declines. That is a sign that the company’s business is deteriorating across all regions.

Most importantly, Gucci has become its worst-performing brand in its portfolio. Gucci sales dropped by 24% to €1.57 billion. Its other houses business also deteriorated, with its sales falling by 11% to €733 million. 

The growth of Yves Saint Laurent, Bottega Veneta, and Eyewear businesses was not enough to offset Gucci’s plunge. 

Kering hopes that Demna Gvasalia to be Gucci’s artistic director, who replaced Sabato De Sarno. Demna will become the artistic director in July of this year and will come from Balenciaga, a company owned by Kering. 

Gucci’s sales have plunged because of the weak demand in China and the slow shift towards quit luxury. Analysts note that increased marketing by Kering diluted its brand in the past few years. At the same time, it has had leadership changes that have affected its brand.

History shows that some creative directors can help to boost sales. However, pegging a recovery to one person can be risky. For example, Daniel Lee, a well-known creative director who moved to Burberry, has failed to boost sales. 

Kering share price technical analysis

KER stock chart | Source: TradingView

The weekly chart shows that the Kering stock price has declined significantly over the past few years. This sell-off has continued after each of its financial results has been worse than expected. 

The stock dropped below the key support at €206.55, its lowest level on November 18 last year. It has remained below all moving averages. Specifically, the 50-week moving average has provided support. 

The Relative Strength Index has tilted downwards. Therefore, the stock will likely continue falling as sellers target the key support at €150, which is about 15% below the current level. 

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Finnish telecommunications equipment maker Nokia faced a challenging start to the year, reporting first-quarter profits on Thursday that fell significantly short of market expectations.

Compounding the weaker-than-anticipated results, the company explicitly warned of near-term disruptions stemming from US tariff policies, projecting a tangible impact on its upcoming second-quarter earnings.

Q1 profit falls short, sales dip slightly

Nokia’s comparable operating profit for the first quarter of 2025 landed at 156 million euros (approximately $176.9 million).

This figure represented a substantial 36% miss compared to the average analyst forecast of 243.83 million euros, compiled by LSEG.

Quarterly net sales also showed a slight year-on-year decline, totalling 4.39 billion euros, down 1% and marginally below the 4.41 billion euros anticipated by analysts.

US tariff impact looms over Q2

Looking ahead, Nokia flagged specific financial headwinds expected in the second quarter directly related to the implementation of sweeping tariffs by the administration of US President Donald Trump.

The company estimated a negative impact on its Q2 profit ranging between 20 million and 30 million euros.

This anticipated disruption arises from concerns that businesses might hesitate or pause equipment orders due to fears of tariff-driven price increases, potentially countering recent positive trends for Nokia in the crucial North American market.

Despite facing stiff competition from Nordic rival Ericsson, Nokia had previously noted steady sales growth in North America following years of weaker performance.

Strategic US partnership extended amid challenges

Offsetting some of the near-term concerns, Nokia simultaneously announced a significant positive development in its US operations.

The company confirmed a strategic multi-year extension of its partnership with major carrier T-Mobile.

This collaboration is focused on further expanding T-Mobile’s 5G network coverage across the United States, highlighting Nokia’s continued integral role in the build-out of next-generation wireless infrastructure.

Full-year outlook reaffirmed, Infinera integration included

Despite the first-quarter profit miss and the anticipated Q2 tariff impact, Nokia management expressed confidence in its broader trajectory by reaffirming its financial outlook for the full fiscal year.

Notably, this confirmed outlook now incorporates the company’s pending acquisition of optical networking specialist Infinera, signaling that the integration plan remains on track despite the current market headwinds.

The confirmation suggests Nokia believes it can navigate the immediate challenges while pursuing its longer-term strategic growth objectives.

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European stock markets are poised for a muted and mixed opening on Thursday, signaling that the recent relief rally fueled by easing US policy concerns may be losing steam.

After significant gains earlier in the week, investor caution appears to be returning as underlying economic and trade uncertainties persist.

Early indications point towards a flat to slightly lower open across major European bourses.

According to data from IG, the UK’s FTSE 100 is expected to edge just 6 points higher to 8,404, while Germany’s DAX is seen opening flat at 21,933. France’s CAC 40 is projected to dip 2 points to 7,475, and Italy’s FTSE MIB is anticipated to start 53 points lower at 35,942.

This lackluster outlook follows strong performances on Wednesday, where European markets joined a global upswing.

That rally was largely driven by relief after US President Donald Trump seemingly backed away from threats to fire Federal Reserve Chair Jerome Powell and hinted at potential de-escalation in the US-China trade conflict.

US stocks surged significantly on Wednesday, building on Tuesday’s gains, as these immediate concerns subsided.

While S&P 500 futures showed further modest gains overnight and Asia-Pacific markets traded mixed, the initial burst of optimism appears to be giving way to a more sober assessment in Europe.

Earnings and economic data take center stage

With the immediate focus shifting slightly from Washington’s policy pronouncements, investors in Europe will turn their attention to a busy slate of corporate earnings and economic data releases on Thursday.

Key earnings reports are expected from major players including consumer goods giant Unilever, Spanish bank Banco Sabadell, French pharmaceutical firm Sanofi, Italian energy company Eni, banking group BNP Paribas, and software company Dassault Systemes.

On the data front, crucial releases include French consumer confidence figures and updated statistics on new car registrations across the European Union, providing fresh insights into consumer sentiment and industrial activity.

Diamonds lose sparkle

Highlighting sector-specific pressures, London-listed mining giant Anglo American announced a significant cutback in diamond production.

In a trading update, the company revealed it had reduced rough diamond output by 11% to 6.1 million carats during the first quarter.

Anglo American attributed this decision to tepid demand and falling prices for diamond jewelry.

“Consumer demand for diamond jewellery in the United States over the year-end holiday season was in line with expectations, however, rough diamond demand in the first quarter remained subdued,” the company stated, explaining that middlemen remained cautious about restocking inventories due to an existing surplus of polished diamonds.

While noting tentative signs of price stabilization, Anglo warned, “ongoing macroeconomic uncertainty, in particular the impact of US tariffs, will likely result in continued cautious Sightholder purchases in the near term.”

The company reaffirmed its intention to eventually sell its De Beers diamond subsidiary “when market conditions allow,” amidst an 11% decline in its share price so far in 2025.

Bear market rally or sustainable recovery?

The sharp rebound seen earlier in the week has also drawn cautious commentary from market strategists.

Analysts at Wolfe Research, Rob Ginsberg and Read Harvey, noted to CNBC late Tuesday that “Bear market rallies are the most violent.”

While acknowledging the strong internal market breadth during Tuesday’s 2.5% S&P 500 gain, they warned that such rallies “make you a believer” but may not signify a true end to the underlying downturn.

Citing longer-term trends, they maintain a bear market stance and are looking for a “cluster” of technical signals, including the S&P 500 decisively breaking above resistance levels between 5500 and 5700 (the index closed Wednesday at 5,375.86), before confirming a sustainable shift.

Recession risks not fully priced in?

Adding another layer of caution, strategists at Deutsche Bank suggested that despite recent tariff-fueled recession fears, the market hasn’t fully factored in the possibility of an economic downturn.

“It’s clear that investors aren’t fully pricing a recession in just yet,” wrote strategist Henry Allen.

He pointed out that recent equity declines, credit spread widening, and oil price drops have been shallower than those seen in previous recessions.

Allen argued that markets likely see a recession as avoidable, especially “if the tariffs don’t come into force after the latest 90-day extension.”

However, this also implies “significant downside risks” for stocks should a recession indeed materialize.

As European markets prepare to open, the focus shifts back to fundamentals and regional developments after a brief, globally-driven relief rally appears to be pausing for breath.

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The DAX Index has staged a strong comeback in the past few weeks and is closing in on its all-time high as European indices become a safer haven than their American counterparts. It bottomed at €18,488 earlier this month and then rebounded to its current level of €22,000.

The blue-chip index that tracks the biggest German companies has held steady as investors remain hopeful that the US will reach a deal with the European Union. Without a deal, many DAX constituents will continue paying substantial levies to sell to their American customers. 

The index has also done well as the European Central Bank (ECB) has signaled that it will continue cutting interest rates to support the economy. Stocks do well when a central bank is slashing interest rates as this usually pushes more people from the lower-yielding bonds.

Most importantly, the German DAX jumped as the government announced that it would boost spending on defense and infrastructure. 

Top DAX Index earnings ahead

The DAX 40 Index will be in the spotlight in the coming weeks as many of its constituent companies publish their financial results. 

These earnings have started well. On Wednesday, SAP, the biggest company in the index, reported strong financial results, pushing its stock higher by over ten percent.

The company said that its operating profit rose to €2.5 billion in the first quarter, while its revenue soared by 11% to €9 billion. This growth was driven by its cloud business whose backlog jumped by 29%.

The management has stated that it expects its business to continue performing well, even as tariff jitters persist. That’s because it has tools that companies need to manage their supply chains well.

More companies in the DAX Index will publish their financial results next week. Deutsche Boerse, the €58 billion giant, will be the first one to publish its numbers next week. Its numbers come as the stock has jumped to a record high, making it one of the best performers in the index. It rose to a high of €280, up by 87% from its lowest level last year. 

Deutsche Boerse stock has jumped because of the resilience of the German market even as the economy improves. Its annual results showed that the net revenue jumped to over €5.8 billion, while the EBITDA jumped to over €3.3 billion. 

Deutsche Bank, Germany’s largest lender, will release its numbers next Tuesday. Like other European banks, Deutsche Bank’s stock has jumped to $25, up by 265% from its 2022 lows. It has benefited from high interest rates and the restructuring efforts made by Christian Sewing. 

Automakers like Mercedes-Benz, Volkswagen, and Porsche will also publish their financial results next week. Their numbers will provide more information on the impact of tariffs on the business. The other top companies to watch will be Deutsche Post and Adidas. 

DAX Index technical analysis

DAX chart | Source: TradingView

The daily chart shows that the German DAX Index has performed well over the past few weeks, jumping from a low of €18,488 earlier this month to €21,760. It has formed a V-shaped recovery and moved above the 50-day and 100-day moving averages.

The index has moved above the strong pivot reverse point at €21,250 of the Murrey Math Lines. It has retested the weak, stop & reverse point. 

Oscillators like the Relative Strength Index (RSI) and the MACD indicators have risen. The stock remains above the Ichimoku cloud indicator. Therefore, the stock will likely continue soaring as bulls target the all-time high of €23,485, which is about 8% above the current level. The stop-loss of this forecast is the major S&R level at €20,000.

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The secondhand retail sector, long the domain of budget-conscious and environmentally aware Gen Z shoppers, may be poised for broader adoption as tariffs threaten to increase the cost of new goods.

Rising prices on imports, particularly apparel and electronics, are prompting consumers to consider more affordable options, potentially giving a new tailwind to the thrifting ecosystem, a report by Barron’s said.

The shift could not only benefit traditional thrift stores and online resale platforms, but also offer investors new opportunities.

Several companies—ranging from online upstarts to legacy players—are positioning themselves to tap into the expected surge in secondhand demand.

Younger generations have already embraced thrift stores — both brick and mortar and online — as a go-to shopping destination.

“Older shoppers could follow suit as firsthand product prices increase, said Sender Shamiss, CEO of ReturnPro. “”The economics of it are going to sway a lot of consumers,” she said.

Online resale platforms regain attention despite rocky IPOs

Online resellers like ThredUp, The RealReal, and Poshmark were among the earliest to attempt to scale secondhand fashion into digital marketplaces.

All three debuted on public markets in the past six years amid strong interest in the so-called “circular economy.”

However, scaling up proved difficult. ThredUp now trades at a fraction of its IPO price, as does The RealReal.

Poshmark exited the public markets entirely, selling to South Korea’s Naver for under half its debut valuation.

Despite these setbacks, investors are reconsidering the sector.

The ongoing US-China trade dispute has led many to anticipate higher import costs, especially on apparel, electronics, and home goods.

Resellers, who source products locally rather than from overseas suppliers, may now enjoy a competitive advantage.

James Reinhart, CEO of ThredUp, was candid about the upside during a March earnings call.

Anything that increases the cost of new apparel is likely also to provide some modest tailwind to secondhand goods, because we don’t have exposure to bringing in products from overseas.

A ReturnPro survey of over 500 consumers found that 55.4% would be more likely to buy from resale platforms to avoid paying more for tariff-inflated goods.

If borne out in consumer behaviour, that shift could provide significant upside for resale operators.

Thrifting’s cultural rise intersects with economic headwinds

The movement toward resale has been culturally driven, especially by younger shoppers.

According to Piper Sandler’s semiannual “Taking Stock with Teens” survey, 45% of teens bought clothing secondhand this spring.

This shift is reinforced by environmental awareness, social media trends, and economic caution.

In 2024, the US secondhand apparel market grew 14% year over year to $25 billion—five times faster than the broader retail clothing market, according to a widely cited 2025 report by ThredUp.

Projections suggest the market could reach $74 billion by 2029, growing at an average annual rate of 9%.

Still, economic uncertainty could moderate this momentum.

As concerns mount over a slowdown in discretionary spending, some fear demand for even low-cost options could dip.

“It’s bad for everybody, but I would say it’s less bad for resale,” said Jeff Lindquist, partner at Boston Consulting Group.

“Secondhand is simply better positioned to weather softer consumer sentiment.”

Etsy and eBay offer less risky resale exposure

Investors exploring the resale trend have a range of options, but many of the newer, digital-first platforms remain unprofitable and volatile.

For lower-risk exposure, analysts suggest Etsy. While its core business is handmade and vintage goods, the company’s acquisition of secondhand fashion platform Depop in 2021 has paid dividends.

Depop ranked as the fifth favourite teen shopping site this spring and grew gross merchandise sales by over 30% in 2024, even as Etsy’s total GMS declined.

BTIG analyst Marvin Fong believes Etsy’s risk profile remains attractive. “The combination of healthy [free cash flow], low expectations, reasonable valuation, and a strong competitive position offers a relatively favourable risk-reward,” he wrote in a note following Etsy’s February earnings report.

Another established player benefitting from the thrifting trend is eBay.

Though it has fallen off the cultural radar somewhat, eBay remains a key resale platform—especially for electronics, car parts, and collectibles.

Shares are up 7.3% year to date, outperforming the broader S&P 500’s decline.

“We still see eBay shares as one of the relatively safer places to hide in our e-commerce coverage,” wrote Lee Horowitz, an analyst at Deutsche Bank, in an April 14 note.

Brick-and-mortar players like Savers see new growth runway

Thrifting is not just an online phenomenon. Savers Value Village, a traditional thrift-store operator, went public in 2023 and has quietly become a standout.

Unlike many of its digital peers, the company has delivered consistent profits—posting adjusted earnings per share of 58 cents for fiscal 2024.

With a footprint that spans both Canada and the US, Savers is well-positioned for long-term expansion.

William Blair analyst Dylan Carden initiated coverage with an “Outperform” rating, citing competitive advantages and a favorable macro backdrop.

“We believe that weaker peers, growing acceptance of resale, and the fractured nature of the market all support Savers’ longer-term growth vision,” he wrote in an April note.

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