L’Oréal and Kering Sign 50-Year Exclusive Beauty Licence for Gucci, Starting a Year Early in 2027

French group L’Oréal, the world’s largest cosmetics company, and French luxury group Kering have signed a 50-year exclusive global licence for the fragrances and beauty products of GUCCI. Announced on July 7, 2026, the agreement marks a new milestone in the strategic beauty and wellness partnership the two companies unveiled on October 19, 2025.

The licence follows an agreement between Gucci and its current licensee Coty to bring forward the end of their existing beauty licence — originally set to expire on June 30, 2028 — by one year. Subject to regulatory approvals and the wind-down of the Coty agreement, L’Oréal’s new licence is expected to take effect on July 1, 2027, from which date L’Oréal will develop and manage the Gucci Beauty business worldwide.

Summary

A New Chapter for Gucci Beauty, One Year Early

Until the effective date, Kering and L’Oréal will work closely under a dedicated framework designed to maintain business continuity and ensure a smooth, seamless transition. By combining Gucci’s creative vision and global brand power with L’Oréal’s beauty expertise, innovation capabilities and global distribution network, the two companies aim to create long-term growth opportunities across fragrance and beauty.

The cost of accelerating the transition was also set out. Coty is expected to receive about US$400 million for the early termination of its licence, paid in instalments of US$250 million in 2026 and up to US$150 million in 2027. To support a smooth handover, part of Coty’s inventory will be transferred, and L’Oréal will pay Kering, as transition-related expenses, an amount equivalent to roughly 70% of the early-termination and inventory-acquisition costs.

In the Words of the Leadership

Nicolas Hieronimus, Chief Executive Officer of the L’Oréal Groupe, said: “I am truly delighted to welcome Gucci Beauty into L’Oréal’s brand portfolio a year ahead of schedule. This is the beginning of a new 50-year journey — not only a powerful engine to drive sustainable growth for L’Oréal, but also a new milestone in our partnership with Kering.”

Cyril Chapuy, President of L’Oréal Luxe, said: “Welcoming Gucci Beauty into L’Oréal Luxe is a great honour and brings perfect synergy to our strategy. Gucci is a cultural powerhouse that has redefined what luxury means today, blending a rich heritage with a highly distinctive, cutting-edge fashion vision. The addition of this iconic brand injects a singular, mutually enriching creative energy into our portfolio. By combining Gucci’s innovative edge with L’Oréal’s world-class business platform, we will build a new multi-billion-euro mega-brand.”

Luca de Meo, CEO of Kering, said: “This agreement creates value for everyone — Gucci, L’Oréal and Coty. By accelerating the transition process, Gucci and L’Oréal can begin building the new chapter of Gucci Beauty together a full year earlier than planned. By uniting two companies that lead the worlds of luxury and beauty, we are laying the foundations to further elevate Gucci’s presence, influence and brand appeal across every generation and market.”

Two Giants of Luxury and Beauty

L’Oréal is the world’s largest cosmetics group, with 40 international brands and 2025 group sales of €44.05 billion. Kering, a family-led global luxury group whose houses include Gucci, Saint Laurent, Bottega Veneta, Balenciaga and Boucheron, posted 2025 sales of around €14.7 billion.

For luxury houses, beauty has become both an entry point into the brand experience and an increasingly important, stable source of revenue. As Gucci’s innovative creativity meets L’Oréal’s global operating base, all eyes are on the new chapter Gucci Beauty will write ahead of its 2027 launch.

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