Kering will be booted from Europe’s premier blue-chip index as defense giant Rheinmetall boosted by the continent’s war footing
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 certain in an e -mail notification reported by Bloomberg on 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 Dusseldorf company announced its headquarters that it has received a huge ammunition something earlier today, which confirms the increasing demand for weapons.
Rheinmetall, which also provides auto parts, witnessed an increase of operating profits by 61 % 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 of Rheinmetall’s success was a modern phenomenon-the shares increased by 1,800 % since the Ukraine war began in February 2022. until March 2023, the arms manufacturer had become part of DAX, the German indication of forty blue 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. KERING 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 has undergone a significant change in driving and announced a strategy to reduce costs, inspiring hope for a possible return to the FTSE 100 index. But this has not yet happened.
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
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2025-06-03 11:11:00
