Key facts
- L'Oreal plans to launch its first Gucci beauty products as early as 2028.
- L'Oreal will take over the license for Gucci beauty products from Coty in mid-2027.
- The deal between Kering and L'Oreal for the Gucci beauty license was accelerated.
- The €4 billion deal includes rights to the Gucci brand license.
- Coty will receive approximately $400 million for early redemption of its existing license.
L'Oreal plans to launch its first Gucci beauty products as early as 2028, according to Nicolas Hieronimus, the company's Chief Executive. The beauty giant is set to take over the license to produce beauty products for the Gucci brand from Coty in mid-2027, a move that is part of a €4 billion deal signed with Kering late last year.
The agreement between Kering and L'Oreal to license the Gucci beauty line has been accelerated, with the transfer now expected to occur in mid-2027 instead of the originally planned 2028. This acceleration is due to Gucci and Coty bringing forward the redemption date of their existing beauty license agreement. Coty is set to receive approximately $400 million for this early redemption, with payments expected throughout 2026 and 2027.
Kering CEO Luca de Meo stated that the accelerated agreement creates value for all parties involved and enables Gucci and L'Oreal to begin shaping the next chapter of Gucci Beauty a year earlier than planned. He expressed confidence in restoring Gucci to its deserved position, noting the brand's improvement in its core fashion and leather goods lines.