French cosmetics giant L’Oreal has signed a
major €4 billion deal with luxury group Kering, granting it 50-year
exclusive licenses to develop and distribute beauty products under Kering’s
high-end fashion labels Gucci, Balenciaga, and Bottega Veneta.
The two companies announced in a joint statement that
they were entering a “long-term strategic partnership in luxury beauty and
wellness,” with payment expected in the first half of 2026, pending
regulatory approvals.
The agreement also covers Creed, the British
fragrance house acquired by Kering last year.
“Through Creed, we will establish ourselves as one of
the leading players in the fast-growing niche fragrance market,” said Nicolas
Hieronimus, L’Oreal’s Chief Executive Officer.
The long-term licensing arrangement will take effect
after Kering’s existing deal with U.S. beauty group Coty expires in 2028.
For Kering, whose brands include Saint Laurent
and Alexander McQueen, the deal marks a crucial move under new CEO Luca de
Meo, who took over a month ago with a mandate to reduce the group’s debt
and reinvigorate its portfolio.
Kering, which reported a 46 per cent drop in net
profit to €474 million and a 16 per cent fall in revenue to €7.6
billion in the first half of 2025, described the agreement as a “decisive
step” toward long-term financial stability.
“This partnership is a decisive step for Kering,” de
Meo said, adding that the collaboration with L’Oreal would “unlock the full
potential of our luxury brands in the beauty segment.”
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