October 25, 2017 / 7:14 AM / a year ago

Kering shares touch record highs after luxury group posts higher third-quarter sales

PARIS (Reuters) - Shares in luxury goods group Kering (PRTP.PA) surged to touch record highs on Wednesday after Kering beat sales forecasts in the third quarter.

FILE PHOTO: A model displays a creation from the Gucci Spring/Summer 2018 show at the Milan Fashion Week in Milan, Italy, September 20, 2017. REUTERS/Stefano Rellandini/File Photo

Kering shares were up 6 percent to 384.45 euros in early session trading, with the stock at one point touching a record high of 390 euros. Kering shares have risen some 80 percent since the start of 2017, among the top performers in France and Europe.

Shares in rival luxury group LVMH (LVMH.PA) climbed by around 1 percent to also touch a record high.

Kering’s revenue reached 3.9 billion euros ($4.6 billion) in the third quarter, up 23.3 percent on a non-organic basis, as the company’s Gucci brand showed strong growth during the quarter.

JP Morgan analysts raised their price target on Kering shares to 400 euros from 370 euros, while keeping an “overweight” rating on Kering.

“Gucci posted impressive 49 percent organic sales growth in Q3,” JP Morgan’s analysts wrote in a research note.

Reporting by Sudip Kar-Gupta; Editing by Leigh Thomas

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