By

AFP

Published

July 8, 2026

L’Oréal and Gucci have entered into a 50-year licence agreement in the beauty sector, following a decision to bring forward by one year the termination of the existing licence between Gucci and U.S.-based Coty.

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The licence between Gucci and Coty — which will receive around $400 million in consideration — had been due to expire in June 2028, according to a press release issued on Tuesday by the Kering group, owner of the Italian brand Gucci. The new licence with L’Oréal is expected to take effect in mid-2027.

“The agreement announced today creates value for all parties — Gucci, L’Oréal and Coty,” said Kering’s chief executive, Luca de Meo, as quoted in the press release.

“It accelerates the transition and allows Gucci and L’Oréal to prepare, a year in advance, for the new chapter of Gucci Beauty,” he added. “We are creating the conditions to strengthen Gucci’s reach, influence and desirability over the long term, across all generations and in every region worldwide.”

“This next step forms part of the beauty and well-being alliance between Kering and L’Oréal announced on 19 October 2025,” the press release states.

French luxury group Kering had sold its beauty division — created in 2023, notably with the acquisition of luxury fragrance house Creed for $3.5 billion — to fellow French group L’Oréal for €4 billion.

The agreement also included “the establishment of 50-year licences for Kering’s iconic brands” (Gucci, Bottega Veneta and Balenciaga), with L’Oréal having already held the Yves Saint Laurent licence since 2008.

The partnership included “the rights to enter into an exclusive 50-year licensing agreement for the creation, development and distribution of Gucci fragrance and beauty products, beginning after the expiry of the current licence with Coty, in compliance with Kering’s obligations under the existing licence agreement.”

It also includes an “exclusive partnership, to be structured as a 50/50 joint venture, which will create experiences and services combining L’Oréal’s innovation capabilities with Kering’s in-depth knowledge of luxury customers.”

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