KERING will be paved from the blue chip index in Europe as the RHEINMETAL defense giant, which is reinforced by the fall of the continent’s war
It has been a time for defense companies over the past few years – and the opposite of luxury companies.
The result? The German arms maker Rheinmetall will soon become part of the Euro Stoxx 50 standard for the largest European listed companies, to replace KERING owner Gucci.
The change will occur on June 20, the Stoxx Group, which runs the index, is confirmed by e -mail notification Bloomberg was martyred by Tuesday.
Among the other members of Euro Stoxx 50 LVMH, Novo Nordisk and Mercedes-Benz.
JPMorgan Pankaj Gupta has pointed out a possible modification of the indicator companies in a memorandum of May 22, with highlighting that Deutsche Bank and the power company Siemens can also be additions throughout the year.
This step is not surprising, given that the shares of Rheinmetall increased by 250 % last year amid huge delivery across Europe and the world. The company, which is based in Dusseldorf, has announced that it has received a huge ammunition request Earlier todayWhich confirms the increasing demand for weapons.
Rheinmetall, which also provides auto parts, saw 61 % operating profits To 1.5 billion euros last year. The weapons company benefited from US President Donald Trump’s swinging position towards Ukraine and European allies, which paved the way for the re -arms leadership.
Armin Papperger, CEO of Rheinmetall said, said. Handelsblatt In April.
Many Rheinmetall’s success was a modern phenomenon – the stocks increased by 1,800 % since the Ukraine war began in February 2022. It was not the case. March 2023 The arms manufacturer has become part of DAX, the German measurement index of forty chip companies.
Meanwhile, the luxury sector – in fact, KERING – has no peak. The French group faced a long stagnation and an internal crisis on some of its biggest brands. King’s sales decreased by 12 % To 17.2 billion euros In 2024, while Gucci, the most profitable brand, decreased by 23 %. The American customs tariff holds KERING full of Kiring languages because it does not plan to increase production in America.
KERING shares decreased by 47.4 % during the past year.
If any consolation to KERING, it will not be the first company to run from the stock index on the dull performance. Last September, Burberry, the British luxury company known for the iconic examination patterns, was expelled from the FTSE 100 index in London after a series of 15 years.
The coat maker also faced trenches with poor performance, as appetite for luxury goods, especially in China, began, amid economic pressure.
Burberry underwent a major change in leadership and announced a strategy to reduce costs, and inspiring hope A possible return To FTSE 100. But this hasn’t happened yet.
In recent months, some of the best performances include Euro Stoxx 50 other companies flowing into defense, such as Safran and Airbus.
Stoxx, Rheinmetall and KERING are no longer immediately wealth Request to comment.
This story was originally shown on Fortune.com
