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L'Oreal Targets 2028 for First Gucci Beauty Launch After €4 Billion Deal
L'Oréal S.A. is targeting a 2028 launch for its first line of Gucci beauty products, CEO Nicolas Hieronimus announced Thursday. The move follows a landmark licensing agreement and signals the French cosmetics giant's high expectations for the luxury brand.
Strategic Timeline and Licensing Deal
L'Oréal is scheduled to officially take over the license for Gucci's beauty division from competitor Coty Inc. in mid-2027. The first products under L'Oréal's management are expected to reach the market as early as 2028.
This transition is a key component of a €4 billion agreement signed last year with Kering, Gucci's parent company. Hieronimus expressed "strong ambitions" for the brand, adding that the company is pleased with the recent performance improvements in Gucci's core fashion and leather goods segments.
Broader Market Outlook
The announcement comes as the global beauty market shows robust growth. According to Hieronimus, the market accelerated to 4.5% growth in the first half of 2026.
AdL'Oréal projects that the global beauty market will expand by 4.5% to 5% for the full year. The company aims to maintain its own growth pace at approximately 6%, positioning it to outperform the broader market.
China and E-commerce Fueling Growth
A significant driver of this growth is the premium segment in key regions like China. Hieronimus reported that while the mass market in China saw a slight decline, high-end dermatological and luxury products grew by around 7%.
The CEO also noted that Chinese consumer confidence is improving, with a greater willingness to purchase premium products. L'Oréal's digital strategy is also paying dividends, with its chief financial officer reporting that e-commerce sales reached €7.4 billion in the first half of the year, a growth rate double that of the overall market.
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