Malaga, July 6th 2023 - 36 Square Capital has taken a first position representing 4% of its total portfolio in Kering (Euronext ticker KER, ISIN code: FR 0000121485) given the current market turbulences and high interest rates. It is the second time after a successful investment into Compagnie Financière Richemont, that a luxury brand is added to the portfolio.
We believe in the current strong fundamentals of the company (low debt to equity, high ROIC, long-term debt completely covered by cash position, P/E around 15, adjusted price to book value < 3, a dividend payout ratio below 50% and total shareholder yield close to 5%) and the strong moat that the company carries with its brands.
Kering is a French-based multinational corporation specializing in luxury goods. It owns the brands Saint Laurent, Gucci, Balenciaga, Bottega Veneta & Alexander McQueen.