French cosmetics giant L’Oreal has secured a 50-year exclusive global licensing agreement with luxury goods group Kering for the creation, development and distribution of Gucci fragrances and beauty products. The new contract is scheduled to become effective on 1 July 2027, subject to customary regulatory clearances, at which point L’Oreal will take full control of worldwide operations for Gucci Beauty.
The announcement follows a separate agreement between Kering and Coty to bring forward the redemption date of their existing beauty license by one year. The original contract with Coty was initially scheduled to run until 30 June 2028. To facilitate this early transition, Coty will receive approximately $400 million in consideration, with cash payments structured across 2026 ($250m) and 2027 (up to $150m). Kering will also acquire selected inventories to ensure market continuity. Under the arrangement, L’Oreal has agreed to cover roughly 70% of these early redemption and inventory transition costs for Kering.
This long-term agreement builds directly on the strategic beauty and wellness alliance established between Kering and L’Oreal on 19 October 2025. Until the mid-2027 handover date, Kering and L’Oreal will coordinate within a specific transitional framework to protect business operations and maintain brand momentum. The partnership aims to mix the global market desirability of the Gucci brand with the distribution networks and research capabilities of L’Oreal to drive long-term commercial growth across the prestige cosmetics sector.
Nicolas Hieronimus, CEO of L’Oréal, said: “I am truly excited by the opportunity to welcome Gucci Beauty within the L’Oreal roster of brands with one year anticipation. It is the start of a 50-year journey, a significant additional growth engine for L’Oreal and new milestone in our partnership with KERING.”
Cyril Chapuy, President, L’Oréal Luxe, said: “Welcoming Gucci Beauty into L’Oréal Luxe is an honor and a perfect strategic fit. 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 multi-billion-euro house.”
Luca de Meo, CEO of Kering, declared: “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. 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.”
