Gucci and L’Oréal Enter 50‑Year Exclusive Beauty License Agreement
Kering disclosed that Gucci and L’Oréal have signed a 50‑year exclusive license to develop and market Gucci‑branded beauty products, with the agreement slated to become effective in mid‑2027, a full year earlier than originally planned. The acceleration follows Kering’s earlier announcement on 19 October 2025 of a broader Beauty and Wellness alliance with L’Oréal.
The new arrangement requires the early termination of Gucci’s existing beauty licence with Coty. The original Coty‑Gucci licence was set to expire on 30 June 2028; both parties have agreed to bring forward the redemption date to align with the mid‑2027 start of the L’Oréal partnership. Coty will receive approximately US$400 million as consideration for the early redemption of its licence rights. The cash component will be paid in two tranches: US$250 million during 2026 and up to US$150 million in 2027. In addition to the cash, selected inventories will be transferred to Coty as part of the transition.
L’Oréal will assume transition costs amounting to roughly 70 % of the early redemption costs, together with the inventories, to ensure an orderly handover of the licence. The deal remains subject to regulatory approvals.
Luca de Meo, CEO of Kering, stated: “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.”
Key Dates and Figures
- Licence effectiveness: mid‑2027 (pending approvals)
- Original Coty‑Gucci licence expiry: 30 June 2028
- Early redemption payment to Coty: ~US$400 million (US$250 million in 2026, up to US$150 million in 2027) plus inventory
- L’Oréal’s share of transition costs: ~70 % of early redemption amount
The agreement represents a strategic shift in Gucci’s beauty business, moving from Coty to L’Oréal under a long‑term partnership framework.