PARIS — The beauty landscape keeps shape-shifting with news that Gucci and L’Oréal have entered into a 50-year exclusive beauty license.
This is one year ahead of schedule, as the Italian brand’s fragrance and beauty license was meant to expire with Coty Inc. on June 30, 2028.
Kering and L’Oréal had announced on Oct. 19, 2025, that they had formed a major beauty and wellness alliance.
Kering said in a statement that its brand Gucci and Coty had agreed to bring forward the redemption date of their existing license by one year. That means the license with L’Oréal should begin on July 1, 2027.
“By combining Gucci’s global desirability and distinctive creative vision with L’Oréal’s unparalleled expertise in beauty, innovation capabilities and worldwide distribution network, the partnership aims to unlock significant long-term growth opportunities across fragrance and beauty,” Kering said in a statement released Tuesday night.
“Beyond business growth, the partnership is expected to further strengthen Gucci’s desirability and brand equity worldwide,” Kering continued. “By fully harnessing the complementary strengths of beauty and fashion, Gucci and L’Oréal aim to deepen consumer engagement, broaden the house’s global reach and reinforce the consistency, relevance and impact of the brand across categories.”
Coty is to receive about $400 million for the early redemption of the license agreement rights. The cash payments should be made in two phases — $250 million this year and up to $150 million in 2027.
L’Oréal will pay Kering transition costs of about 70 percent of the early redemption costs and inventories.
“Today’s agreement creates value for Gucci, L’Oréal and Coty alike,” said Luca de Meo, chief executive officer of Kering. “It accelerates the transition, enabling Gucci and L’Oréal to begin shaping the next chapter of Gucci Beauty a year earlier than planned.
“By bringing together two global leaders in luxury and beauty, we are creating the conditions to strengthen Gucci’s reach, influence and desirability across generations and geographies,” he said.
Until the new license comes into effect, Kering and L’Oréal will work together for a smooth transition, L’Oréal said in a separate statement.
“I am truly excited by the opportunity to welcome Gucci Beauty within the L’Oréal roster of brands with one year anticipation,” said Nicolas Hieronimus, CEO of L’Oréal. “It is the start of a 50-year journey, a significant additional growth engine for L’Oréal and new milestone in our partnership with Kering.”
“Welcoming Gucci Beauty into L’Oréal Luxe is an honor and a perfect strategic fit,” said Cyril Chapuy, president of L’Oréal Luxe. “Gucci is a cultural powerhouse that has rewritten the rules of modern luxury with its mix of rich heritage and its highly singular, fashion-forward vision. The arrival of this iconic brand adds a unique, highly complementary creative energy to our portfolio. By fusing Gucci’s radical edge with our world-class engine, we are set to build a new multibillion-euro house.”
