Overview
L’Oréal plans to roll out its inaugural Gucci beauty products as soon as 2028, Chief Executive Nicolas Hieronimus said Thursday. The timing follows a planned transfer of the manufacturing license for Gucci beauty from Coty to L’Oréal, scheduled for mid-2027 as part of a €4 billion agreement with Kering concluded last year.
Corporate positioning and timing
Hieronimus described the company as encouraged by a recent uptick in Gucci’s financial performance, particularly improvements in its fashion and leather goods segments. The license handover in mid-2027 sets the earliest practical timeline for L’Oréal to prepare and introduce Gucci-branded cosmetics to the market in 2028.
Sales and market trends
L’Oréal reported that its e-commerce channel produced €7.4 billion in sales during the first half of the year, expanding at roughly twice the pace of the broader market, according to the company’s Chief Financial Officer. That digital momentum sits alongside a global beauty market that accelerated to 4.5% growth in the first half of 2026, a rate the CEO said the company expects to see for the full year in the 4.5% to 5% range.
Regional dynamics
In China, L’Oréal noted a divergence across price tiers: the mass market segment experienced slight negative performance in recent months, while higher-end dermatological and luxury products posted roughly 7% growth. Hieronimus said Chinese consumer confidence is on the mend and that shoppers are showing a greater willingness to spend on premium items.
Growth target
Looking ahead, L’Oréal intends to sustain an overall growth pace of about 6%, the CEO added. The company’s plans for Gucci-branded beauty products form part of this broader growth strategy, leveraging a newly acquired license and existing digital sales strength.
Summary
L’Oréal will take over the Gucci beauty license from Coty in mid-2027 under a €4 billion deal with Kering and aims to launch Gucci-branded beauty products as early as 2028. The company cites improving Gucci results, robust e-commerce sales of €7.4 billion in H1, and a global beauty market expanding at about 4.5% in early 2026. In China, premium segments grew while the mass market showed slight weakness. L’Oréal expects full-year market growth between 4.5% and 5% and targets roughly 6% organic growth for itself.
Key points
- L’Oréal will assume the Gucci beauty license from Coty in mid-2027 under a €4 billion arrangement with Kering, with product launches possible in 2028.
- Strong e-commerce momentum: L’Oréal’s online sales reached €7.4 billion in H1 and grew about twice as fast as the overall market.
- Market outlook: global beauty grew 4.5% in H1 2026; L’Oréal expects 4.5%-5% full-year market growth and aims for around 6% company growth.
Risks and uncertainties
- Timing uncertainty - The earliest launch date of 2028 depends on the mid-2027 license transfer and successful operational execution ahead of that timeframe; any delay could push back product introduction - this affects consumer goods and retail sectors.
- Regional softness - Slight negative performance in China’s mass market could weigh on overall growth if the segment does not rebound as consumer confidence gradually improves - this affects cosmetics, retail, and luxury sales exposure to China.
- Dependence on Gucci momentum - Continued improvement in Gucci’s fashion and leather goods results has been cited as a positive; a reversal in those gains could reduce the immediate upside from the new beauty license - relevant to luxury goods and brand licensing markets.