L'Oreal to launch first Gucci beauty products by 2028, CEO says

• L'Oreal will take over Gucci beauty product licensing from Coty through a €4 billion agreement with Kering
• First Gucci beauty products under L'Oreal expected to launch as early as 2028
• CEO describes being 'super ambitious' for the brand amid signs of recovery in Gucci's fashion and leather goods lines

L'Oreal to Launch Gucci Beauty Products by 2028

Key Development:

L'Oreal plans to introduce its first Gucci beauty products by 2028, following a €4 billion licensing agreement with Kering, Gucci's parent company. The French cosmetics giant will assume control of the Gucci beauty license from current holder Coty.

Strategic Significance:

L'Oreal CEO Nicolas Hieronimus expressed being "super ambitious" for the Gucci beauty line, citing encouraging signs of recovery in Gucci's core fashion and leather goods segments. This optimism suggests strong potential for the beauty extension despite recent challenges facing the luxury brand.

Market Implications:

The deal represents a significant shift in the competitive landscape of luxury beauty products. For L'Oreal, adding Gucci to its prestige portfolio strengthens its position in the high-end beauty market. The transition from Coty to L'Oreal could reshape market dynamics, as L'Oreal brings its extensive resources and distribution capabilities to the Gucci beauty brand.

The €4 billion valuation underscores the substantial value placed on luxury beauty licenses and reflects confidence in the long-term growth potential of the premium cosmetics sector. The 2028 timeline allows L'Oreal several years for product development and market strategy formulation.

Companies Involved:

• L'Oreal (acquirer of license)
• Kering (Gucci's parent company, licensor)
• Coty (current license holder being displaced)

This partnership represents a strategic bet on the convergence of fashion luxury and beauty, with L'Oreal positioning itself to capitalize on Gucci's brand equity as the fashion house shows signs of stabilization.