L’Oréal x Kering: A $4 Billion Beauty Power Move Reshaping Luxury Fragrance

April 5, 2026 | D.M. Fashion Book | Beauty and Grooming

Luxury beauty just entered a new era.

Kering and L’Oréal have officially finalized their landmark €4 billion deal, marking a major shift in the global beauty landscape. With regulatory approvals secured, L’Oréal has acquired Kering Beauté—including the prestigious Creed—while also locking in long-term beauty and fragrance licenses across Kering’s luxury portfolio.

At the center of the agreement is a game-changing move: L’Oréal will take on a 50-year exclusive license to create, develop, and distribute beauty and fragrance products for Gucci once its current agreement with Coty expires. The partnership signals a strategic pivot, positioning L’Oréal to further dominate the high-end fragrance and cosmetics market.

Beyond products, the collaboration hints at a broader vision. Both companies are exploring opportunities in wellness and longevity through a joint venture—an area increasingly shaping the future of beauty.

Leadership is also evolving. Stéphane Bazy steps in as Brand President of New Luxury Brands within L’Oréal Luxe, bringing with him over a decade of success steering Yves Saint Laurent Beauté into billion-dollar territory. His appointment underscores L’Oréal’s focus on blending heritage craftsmanship with innovation-driven growth.

Executives from both sides emphasize the long-term ambition behind the deal. By pairing Kering’s iconic fashion houses with L’Oréal’s global beauty expertise, the partnership is set to unlock new levels of creativity, scale, and consumer experience.

As part of the agreement, L’Oréal will pay royalties to Kering for the use of its licensed brands—cementing a relationship designed to thrive over decades, not just seasons.

In an industry driven by evolution, this alliance isn’t just a deal—it’s a defining moment for the future of luxury beauty.