Kering Stock Falls After Balenciaga Scandal

Introduction

In the wake of the Balenciaga scandal, shares of Kering SA, the luxury goods conglomerate that owns the brand, fell sharply. The stock price dropped by 2.5% to €214.95, the lowest level in over a month.

The Scandal

The scandal erupted earlier this week when Balenciaga released a series of controversial advertisements featuring children holding teddy bears dressed in bondage gear. The ads were widely condemned as inappropriate and exploitative, and Balenciaga has since apologized and removed them from circulation.

The Impact on Kering

The scandal has had a significant impact on Kering's share price. Investors are concerned that the controversy could damage the reputation of the group and lead to a decline in sales. Kering has not yet released a statement on the financial impact of the scandal, but analysts believe that it could be significant.

The Future of Balenciaga

It is unclear what the future holds for Balenciaga. The brand has been in damage control mode since the scandal broke, and it is unclear if it will be able to recover. Kering has said that it is committed to supporting Balenciaga, but it is possible that the brand could be sold or even closed down.

Conclusion

The Balenciaga scandal is a major blow to Kering SA. The stock price has fallen sharply, and the future of the brand is uncertain. It remains to be seen how Kering will respond to the crisis and whether it will be able to protect its reputation and its bottom line.