Kering and L'Oréal Formalize a 50-Year Beauty License for Gucci

An Anticipatory Agreement of the Existing Contract

The agreement follows the joint decision by Gucci and Coty to expedite the buyout of the existing beauty license contract, originally set to expire on June 30, 2028. The new license with L'Oréal is expected to take effect in mid-2027, following the receipt of regulatory approvals and the repayment of the current contract with Coty.

This acceleration by one year is part of Kering's strategy to strengthen its position in the beauty sector by combining Gucci's global desirability and distinctive creative vision with L'Oréal's unmatched expertise in innovation and global distribution.

Financial Terms of the Transition

Coty will receive approximately $400 million for the early buyout of the existing licensing rights. The cash payments will be made in two installments: $250 million in 2026 and up to $150 million in 2027. Selected inventories will also be acquired as part of the transition process, in addition to the $400 million amount.

L'Oréal will pay Kering transition costs representing about 70% of the early buyout fees and inventories, in exchange for an orderly transition of the existing contract.

Strategic Stakes for Gucci

The partnership aims to unlock significant long-term growth opportunities in the fragrance and beauty sectors. Beyond commercial growth, the agreement is expected to enhance Gucci's desirability and brand equity globally. By fully leveraging the complementarities between beauty and fashion, Gucci and L'Oréal intend to deepen consumer engagement, expand the global reach of the brand, and strengthen the consistency, relevance, and impact of the brand across all product categories.