Gucci and L'Oréal Conclude a 50-Year Beauty Licensing Agreement
Coty will receive about $400 million and keep operating Gucci Beauty through June 30, 2027, as L'Oréal prepares to take over.
- On Tuesday, Coty agreed to return the Gucci Beauty license to Kering early in a deal worth about $400 million, ending the arrangement roughly a year before the original contract expired.
- The agreement follows a beauty deal The French made last year with L'Oréal, which included rights to a long-term Gucci license after Coty's existing contract expires in 2027.
- Coty plans to use the proceeds to reduce debt and invest in core prestige brands, while Kering will receive sufficient inventory to support the transition process.
- Kering CEO Luca announced the deal "creates value for each of the parties," allowing the company to prepare for the new chapter of Gucci Beauty ahead of schedule.
- With Gucci representing 40% of its revenue, Kering CEO Luca said the "priority is to make Gucci indispensable again" through the upcoming beauty strategy.
18 Articles
18 Articles
DEXYPTAGE - Allies in cosmetics, the two groups will pay $400 million to recover, as early as 2027, a year before its end, the license of the Florentine maroquiner.
Coty Will Return the Gucci Beauty Brand License to Kering Ahead of Schedule, and L-Oréal Must Assume
Coty plans to transfer its license to sell Gucci brand beauty products back to Kering next year, about a year before the original contract deadline, for $400 million. Exclusive material for subscribers. To have full access, access the material link and register.
License agreement between L’Oréal and Gucci Beauty to take effect next year - RetailDetail EU
L’Oréal has signed an exclusive 50-year licensing agreement for the development and distribution of Gucci Beauty products. The agreement will take effect next summer, following the end of the partnership between Gucci and Coty, which had previously been announced by Kering.
This new licence will enter into force from mid-2027, after the early termination of the collaboration between the Italian brand and the American group Coty.
Coty to return Gucci Beauty license to Kering early in $400 million deal
Coverage Details
Bias Distribution
- 46% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
