L’Oréal to take control of Gucci Beauty from July 2027 – a year early

By Kevin Rozario | Tuesday, 14 July 2026 16:10

Luxury fashion and beauty groups Kering, L’Oréal, and Coty have come to an agreement that allows L’Oréal to enter into a 50-year exclusive agreement with Kering’s biggest brand, Gucci, a year earlier than expected. The deal follows the momentous beauty and wellness alliance sealed between Kering and L’Oréal in October 2025.

From 1 July, 2027, a new license will come into effect – subject to regulatory approvals – when L’Oréal, the world’s largest beauty house, will assume responsibility for the development and management of Gucci Beauty activities worldwide, significantly adding to its coffers. In 2025, the French beauty powerhouse posted sales of €44.05 billion ($49.70*).

The agreement was made after Gucci and Coty decided to bring forward the redemption date of their existing beauty licence deal, previously due to expire on June 30, 2028, by one year. In a statement, Coty said it will receive approximately $400 million for the early termination, plus the sale of sufficient inventory to support the transition.

L’Oréal will pay Kering – the owner of luxury brands including Saint Laurent, Bottega Veneta, Balenciaga, McQueen – about 70% of the early redemption costs and inventories as consideration for an orderly handover. Coty acquired the Gucci Beauty licence in 2016, and has grown its revenues by more than +60% since 2019, underpinned by franchises including Flora, Bloom, Guilty, and Alchemist Garden.

Broadening the reach of Gucci

According to Kering, which generated €14.70bn ($16.59bn) in 2025, the Gucci deal with L’Oréal “aims to unlock significant long-term growth opportunities across fragrance and beauty”. Kering stated: “The partnership is expected to further strengthen Gucci’s desirability and brand equity worldwide, deepen consumer engagement, and broaden the house’s global reach.”

Commenting on the agreement, announced last week, Luca de Meo, CEO of Kering, said: “It accelerates the transition, enabling L’Oréal to begin shaping the next chapter of Gucci Beauty a year earlier than planned. We are creating the conditions to strengthen Gucci’s reach, influence and desirability across generations and geographies.”

Nicolas Hieronimus, CEO of L’Oréal, added: “It is the start of a 50-year journey, a significant additional growth engine for L’Oréal and a new milestone in our partnership with Kering.” Cyril Chapuy, President, L’Oréal Luxe, believes that Gucci is “a perfect strategic fit” for his division. “The arrival of this iconic brand adds a unique creative energy to our portfolio. By fusing its radical edge with our world-class engine, we are set to build a new multi-billion-euro house,” he noted.