THE WHAT? Kering has announced that Gucci and L’Oréal have entered into a new 50-year exclusive beauty licensing agreement, with the partnership set to begin in mid-2027, one year earlier than originally planned.
THE DETAILS The agreement follows the decision by Gucci and Coty to bring forward the redemption of their existing beauty licence, which had been due to expire in June 2028. Coty will receive approximately US$400 million for the early termination of the licence, with payments scheduled across 2026 and 2027, alongside the acquisition of selected inventories. L’Oréal will reimburse Kering for around 70% of the early redemption and inventory transition costs. The partnership combines Gucci’s luxury brand positioning with L’Oréal’s beauty expertise, innovation capabilities and global distribution network to develop fragrance and beauty products.
THE WHY? Kering said the earlier transition will allow Gucci and L’Oréal to accelerate the development of Gucci Beauty, strengthen the brand’s global desirability, expand consumer engagement and unlock long-term growth opportunities across fragrance and beauty.
Source: Kering
