The agreement between Kering and L’Oréal to license the Gucci beauty line is happening sooner than planned, the companies announced on Tuesday.
The agreement to sell the Kering Beauté business to L’Oréal for €4 billion, first announced in October 2025, was completed on March 31, 2026, which included the House of Creed, as well as the signing of 50-year exclusive licences for the creation, development and distribution of fragrance and beauty products under the Bottega Veneta and Balenciaga brands. Under that agreement, L’Oréal would gain the rights to the Gucci brand license once the existing Coty license expired.
Originally slated for 2028, the agreement, which includes rights to enter into a 50-year exclusive license for the creation, development and distribution of fragrance and beauty products for Gucci, will now come into effect in mid-2027. This is due to the decision by Gucci and Coty to bring forward the redemption date of their existing beauty license agreement, which was due to expire on June 30, 2028. The new license with L’Oréal is now expected to come into effect in mid-2027, pending regulatory approvals and the redemption of the existing license agreement with Coty.
Coty is set to receive approximately $400 million in consideration for the early redemption of the existing license agreement rights, according to Kering. The payments are expected to be made throughout 2026 ($250 million) and 2027 (up to $150 million).
“Today’s agreement creates value for Gucci, L’Oréal and Coty alike. It accelerates the transition, enabling Gucci and L’Oréal to begin shaping the next chapter of Gucci Beauty a year earlier than planned,” Kering CEO Luca de Meo said in a statement. “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.”
The updated timeline of the L’Oréal deal comes at a moment when Kering is looking to accelerate Gucci’s turnaround after years of underperformance. De Meo is optimistic about the progress, he told shareholders and media at Kering’s annual general meeting in May. Today’s announcement of the beauty deal acceleration reflects an ambition to accelerate the brand’s recovery in its beauty division as well.
“We support our teams and we are convinced that we will restore Gucci to the place it deserves,” he said with confidence.
