Gucci and L'Oréal Sign 50-Year Exclusive License Agreement in Beauty, Agreeing to Terminate One Year Ahead of Schedule

This agreement marks a new milestone in the strategic partnership between Kering and L'Oréal in the beauty and wellness sector, initially announced on October 19, 2025.

The agreement was reached following Gucci and Coty's agreement to terminate their existing beauty license agreement one year earlier than its scheduled expiration on June 30, 2028. The new license agreement with L'Oréal is expected to take effect in mid-2027, subject to the necessary regulatory approvals and the completion of procedures for the termination of the existing agreement with Coty.

By combining Gucci's unique creative vision and global brand power with L'Oréal's unparalleled expertise, innovation capabilities, and global distribution network in the beauty sector, both companies aim to create long-term growth opportunities in their fragrance and beauty businesses. This partnership is expected not only to drive business growth but also to further enhance Gucci's brand value worldwide. By maximizing the strengths of beauty and fashion respectively, Gucci and L'Oréal will deepen consumer engagement, expand the brand's global presence, and further strengthen the consistency and appeal of the brand experience across categories.

Coty is expected to receive approximately USD 400 million upon the early termination of the existing license agreement. Related payments are expected to be made in installments, with USD 250 million in 2026 and up to USD 150 million in 2027. Additionally, a portion of the inventory held by Coty will be transferred to facilitate a smooth transition of the business. L'Oréal will also pay Kering an amount equivalent to approximately 70% of the early termination fees and inventory acquisition costs as transition-related expenses to support the smooth handover of the existing license agreement.

Luca De Meo, CEO of Kering, stated:

"This agreement brings value to Gucci, L'Oréal, and Coty alike. By accelerating the transition process, Gucci and L'Oréal can begin building the new chapter of 'Gucci Beauty' together one year earlier than originally planned. By joining forces, two leaders in luxury and beauty are building the foundation to further enhance Gucci's presence, influence, and brand appeal across all generations and markets."

About Kering

Kering is a global luxury group led by its families. It is a home for people with passion and expertise who nurture creative luxury brands in couture & ready-to-wear, leather goods, jewelry, eyewear, and beauty. Its Houses include Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735, and Kering Eyewear. Kering's strategy is centered on creativity, enabling its Houses to push the boundaries of their creative expression and forge the future of luxury in a sustainable and responsible way. We express this belief in our signature: "Creativity is our Legacy." In 2025, the Group achieved sales of approximately EUR 14.7 billion and had a workforce of around 44,000 employees at the end of the fiscal year.