L’Oréal plans to more than triple sales of Gucci-branded beauty products after acquiring the license next year. Chief executive Nicolas Hieronimus stated, “Gucci has to become a multibillion-euro beauty brand,” noting its fashion business is significantly larger than Saint Laurent’s, which generates €3bn in beauty revenues.

Under the current license holder Coty, Gucci beauty generated approximately €600mn last year. L’Oréal's first Gucci beauty products are anticipated in 2028, following the license transfer in July next year. A dedicated team will commence work in September, focusing initially on makeup and fragrance.

This ambition comes as L’Oréal reported record profit margins of 21.3% in the first half, despite a 20 basis point impact from US tariffs. The company saw like-for-like sales rise 6.3% in the second quarter, reaching €11.6bn. Growth was boosted by its professional products and dermatological beauty divisions, with double-digit increases also seen in luxury brands like Aesop and Creed. Sales in China also improved, influenced by a more confident consumer outlook.