Italy · Fashion business
How Gucci Beauty’s licence handover moved forward by a year
L’Oréal plans to take over Gucci Beauty on 1 July 2027, subject to regulatory approvals. The handover follows a March 2026 acquisition and a July agreement to end Coty’s existing Gucci licence early.
Sources checked
- 19 October 2025Alliance announced
The companies announced the Kering Beauté sale, long beauty licences and a proposed wellness venture. Source 1
- 31 March 2026L’Oréal closes the acquisition
The acquisition included the House of Creed. Separate fragrance and beauty licences were signed for Bottega Veneta and Balenciaga. Source 2
- 7 July 2026Gucci and L’Oréal sign
The 50-year exclusive Gucci Beauty licence was announced following a separate agreement to bring forward Coty’s exit. Source 3
- 7 July 2026First early-exit payment
Coty later reported receiving USD 250 million in cash at signing. Selected inventory was covered separately. Source 4
- 30 June 2027Coty’s minimum operating period
Coty said it would keep operating Gucci Beauty through at least this date. Source 4
- 1 July 2027Planned Gucci licence start
L’Oréal’s half-year release identifies this effective date, subject to regulatory approvals. Source 5
Show 2 more dates
- 30 September 2027Deadline for further consideration
Coty expects the additional USD 150 million by this date. Up to USD 30 million is contingent on certain criteria. Source 4
- 30 June 2028Original expiry date
Kering identified this as the previous Coty licence end date before the early-redemption agreement. Source 3
The March acquisition has closed. The Gucci start date and the later payment are shown with their announced conditions.
What closed in March
L’Oréal took ownership of Kering Beauté, including Creed. The closing also brought separate 50-year rights to create, develop and distribute fragrance and beauty products for Bottega Veneta and Balenciaga. Those rights concern the beauty lines of the fashion houses. Source 1 Source 2
Why Gucci followed a different timetable
Gucci already had an operating licence with Coty. The October announcement placed the L’Oréal licence after that agreement. In July 2026 Gucci and Coty agreed to end the arrangement roughly one year earlier than its original June 2028 expiry. Source 1 Source 3 Source 4
What the two headline amounts cover
The companies valued the wider alliance at EUR 4 billion, including the Creed sale and the licensing arrangements. The approximately USD 400 million figure concerns the separate early exit for Coty. Coty reported USD 250 million received at signing and another USD 150 million due by 30 September 2027, with up to USD 30 million conditional. Inventory is a separate element. Source 1 Source 3 Source 4
How the transition costs are shared
Kering said L’Oréal would reimburse it for about 70% of the early-redemption and inventory costs. The original alliance also provides for royalty payments to Kering for use of its licensed brands. The disclosed cash payments and the continuing royalties describe different parts of the relationship. Source 3 Source 1
Which dates still matter
L’Oréal lists 1 July 2027 as the effective date for the Gucci licence, subject to approvals. Coty says it will operate Gucci Beauty through at least 30 June 2027. Follow the start date, the inventory transfer and the later cash payment as separate events. Source 5 Source 4
Sources
- Kering and L’Oréal announcement of the beauty and wellness alliance
- L’Oréal announcement of the completed Kering Beauté acquisition
- Kering announcement of the July 2026 Gucci Beauty licence
- Coty FY2026 results and Gucci Beauty transition terms
- L’Oréal 2026 half-year results and planned Gucci licence start