Read-across from Kering's 3Q26 results

Nomura uses Kering Group's 3Q26 results (KER FP, Not rated) as a read-across for the China consumer sector. Kering's 3Q26 comparable revenue declined 1% y-y to EUR3,345mn, broadly in line with the Bloomberg consensus of EUR3,352mn, but weakened from 2% y-y growth in 2Q26, mainly dragged by core brand Gucci, whose revenue decline accelerated to 6% y-y from 2% in 2Q26. By region, 3Q26 retail revenue growth in North America, Japan, Asia Pacific (ex-Japan) and Western Europe was +1%, +4%, -8% and 0% y-y, versus +10%, +9%, -1% and -1% in 2Q26; Mainland China remained the main headwind for Asia Pacific (ex-Japan) while South Korea continued to see strong momentum. Direct retail (incl. e-commerce) revenue fell 3% y-y while wholesale grew 3% y-y;