Kering is bringing the Gucci beauty license back in-house from Coty approximately one year earlier than scheduled, agreeing to a $400 million payment. This move sets the stage for a 50-year exclusive licensing agreement between Kering and L'Oréal, which will commence in mid-2027.

Coty, which originally secured the license in 2016, will continue to manage the Gucci beauty business, including popular fragrance lines like Flora and Bloom, until at least June 30, 2027. The original agreement was set to expire on June 30, 2028. The transaction also involves the resolution of all outstanding litigation between Coty and Kering concerning the license.

The early termination and subsequent deal with L'Oréal signal Kering's strategic intent to consolidate control over its high-profile brands' beauty segments. For investors, this restructuring offers a clearer path to brand alignment and potentially greater value capture from the lucrative beauty market, while Coty exits a significant brand ahead of schedule.