Kering moves Gucci's beauty licence from Coty to L'Oréal a year early

Kering said Gucci and L'Oréal have entered a 50-year exclusive beauty licence agreement, effective mid-2027, a year ahead of schedule. The deal ends Gucci's existing beauty licence with Coty, which had been due to run until 30 June 2028, one year early.

According to Kering, Coty will receive approximately $400 million for the early redemption of its licence, made up of $250 million paid in 2026 and up to $150 million in 2027, plus the transfer of selected inventories. L'Oréal will cover roughly 70% of that redemption cost, the company said. Kering also released a comment from L'Oréal chief executive Luca de Meo, who said: "Today's agreement creates value for Gucci, L'Oréal and Coty alike."

Paying to end a licence a year early, rather than simply waiting it out, is Kering buying back control of Gucci's brand positioning sooner. Beauty is usually the first category a luxury house licenses out, and among the hardest to keep on-brand at scale, so handing Gucci's fragrance and cosmetics to L'Oréal ahead of schedule signals Kering wants that alignment now, not after Coty's contract naturally lapses — a sign of how central rebuilding Gucci is to Kering's own turnaround.