L’Oréal strengthens its leadership in luxury beauty. The French group has signed an agreement with Kering for an exclusive license lasting 50 years for the creation, development, and worldwide distribution of perfumes and beauty products under the Gucci brand. The agreement comes after Kering’s decision to terminate the license with Coty early and marks a new chapter for Gucci Beauty. The agreement will come into effect on July 1, 2027, once the necessary regulatory authorizations have been obtained.
A transition until 2027
Until the start of the new license, Kering and L’Oréal will collaborate to ensure a gradual transition and continuity of activities. In the meantime, Coty will continue to manage Gucci Beauty until June 30, 2027. The agreement with Kering includes a consideration of approximately $400 million: $250 million will be paid immediately, while the remaining $150 million will arrive by September 2027. An additional payment of up to $30 million linked to specific performance targets is also expected.
Gucci strengthens L’Oréal’s Luxe portfolio
For L’Oréal, the operation represents an important piece in the growth strategy of the Luxe portfolio. Gucci Beauty is added to a portfolio that includes some of the most prestigious brands in international cosmetics and perfumery, strengthening the group’s presence in the premium segment.
“”Gucci is an emblematic maison and a cultural force that has rewritten the rules of modern luxury. The arrival of this iconic brand brings a unique and complementary creative energy to our portfolio. By combining Gucci’s boldness with our global strength, we are laying the foundation for a business capable of generating several billion euros in revenue,”” said Cyril Chapuy, president of L’Oréal Luxe.
Coty focuses on financial strengthening
For Coty, exiting the Gucci Beauty business is part of the portfolio rationalization plan and financial structure strengthening. Most of the resources obtained from the operation will be allocated to debt reduction and support for strategic brands, including Boss and Marc Jacobs. At the same time, the group continues the review of consumer activities, which could lead to the divestment of some brands, including CoverGirl and Rimmel.
A new chapter in the partnership with Kering
The agreement also strengthens the relationship between L’Oréal and Kering, initiated in 2025, and reinforces the French group’s strategy in the luxury beauty segment. For Gucci, the transition to L’Oréal marks a new phase of international development. For the French giant, it represents a long-term investment in one of the most iconic brands in the global luxury industry, with the aim of accelerating its growth in the global fragrance and cosmetics market.
