The Gucci license will take effect after the Coty license expires, with the early redemption payments scheduled during 2026 and 2027.

Gucci has signed a 50-year exclusive beauty license with L’Oréal to create, develop, and distribute fragrances and beauty products, effective July 1, 2027, subject to regulatory approvals and the Coty license redemption.

The deal expands L’Oréal’s luxury beauty portfolio while accelerating Gucci’s global growth and appeal, per statements from L’Oréal’s Nicolas Hieronimus and Kering’s Luca de Meo.

This arrangement is the next step in Kering’s Beauty and Wellness alliance with L’Oréal, first announced in late 2025 to boost Gucci Beauty’s growth and reach.

Coty will receive roughly €400 million through an early termination of its license, with up to €250 million paid in 2026 and up to €150 million in 2027, plus a stock transition package.

L’Oréal presents itself as a long-standing beauty leader with global reach, sustainability commitments, and a €44.05 billion sales figure in 2025, underpinning the collaboration.

Gucci represented about 40% of Kering’s revenue, but revenue declined from €10.5 billion in 2022 to €6 billion in 2025 as the company works to make Gucci incontournable again.

The move signals a broader strategy to restore Gucci’s prominence as a leading luxury brand across regions and generations.

Regulatory approvals and the Coty redemption are prerequisites for the deal, with ongoing coordination of clearances between L’Oréal and Gucci.

Cyril Chapuy of L’Oréal Luxe emphasizes Gucci Beauty as a cultural powerhouse and envisions building a multi‑billion‑euro house by leveraging Gucci’s creativity with L’Oréal’s strengths.

L’Oréal will cover about 70% of the early termination costs and inventories as part of the transition.