L’Oréal signs 50-year exclusive Gucci beauty license starting July 1, 2027

Kering said it plans to take back the Gucci beauty licence from Coty for $400 million before handing the brand to L’Oréal under a long-term exclusive agreement beginning in mid-2027.

Summary

L’Oréal has signed a 50-year exclusive license agreement with Kering for Gucci-branded fragrances and beauty products, with the arrangement set to start on July 1, 2027, subject to regulatory approvals. Kering said it plans to reclaim the Gucci beauty licence from Coty next year, around a year before the original term was due to end, for $400 million, and expects to license the business to L’Oréal starting in mid-2027. The transition would bring Gucci Beauty under L’Oréal’s global development and distribution platform ahead of schedule and extends the luxury group’s alliance with Kering. Until the effective date, the companies have said they will work within a specific framework to support a smooth handover and maintain business continuity.

Terms & Concepts
  • exclusive license agreement: A contract giving one company sole rights to develop, market or distribute a brand in a specified category.
  • regulatory approvals: Required clearances from competition or other authorities before a transaction can take effect.
  • L’Oréal Luxe: L’Oréal’s luxury division, which manages high-end beauty and fragrance brands.