en.Wedoany.com Reported - On July 7 local time, U.S. beauty group Coty and French luxury group Kering reached an agreement to transfer the Gucci Beauty brand license back to Kering ahead of schedule. The total consideration of the agreement is approximately $400 million, with the Gucci Beauty license ending about a year earlier than the original contract period. Coty will continue to operate Gucci Beauty until at least June 30, 2027.
This transaction involves the transfer of brand licensing and operational rights within the beauty light industry. Gucci Beauty is not merely a single trademark usage right; it encompasses fragrances, cosmetics, channel sales, inventory management, product development pace, marketing, and global retail network integration. Since acquiring the Gucci Beauty license in 2016, Coty has been responsible for product development, production organization, marketing, and sales operations. Fragrance lines such as Gucci Flora and Bloom have become key product drivers for Gucci Beauty's revenue growth.
The payment under the agreement is divided into two parts. Coty has already received $250 million in cash upon signing, with the remaining $150 million to be paid no later than September 30, 2027, including a maximum earn-out clause of $30 million. Both parties have also agreed to fully resolve pending litigation and related claims surrounding the Gucci Beauty license, reducing legal and operational hurdles for the subsequent license transfer.
Gucci Beauty's core categories are concentrated in high-end fragrances and cosmetics. For beauty companies, fragrance licensing typically relies on brand identity, fragrance R&D, packaging design, filling production, global distribution, and duty-free retail channels. Over the past few years, Coty has maintained its product portfolio around series such as Gucci Flora, Bloom, Guilty, and Alchemist Garden, increasing Gucci Beauty's revenue by more than 60% since 2019.
After this early license transfer, Coty will use the proceeds from the transaction to repay debt, invest in its core high-end fragrance and beauty portfolio, and adjust its organizational structure. For Coty's own business, funds and resources will be redirected more toward core high-end fragrance brands such as BOSS and Marc Jacobs, as well as its existing beauty product portfolio.
During the license transition period, Coty will continue to manage Gucci Beauty operations. Until June 30, 2027, related work will focus on existing product sales, channel supply, inventory transfer, market activity coordination, and brand operational transition. Coty will also sell sufficient Gucci Beauty inventory to Kering to support the transition, ensuring continuity of supply for fragrances and cosmetics before and after the license transfer.
Once the Gucci Beauty license returns to Kering, it will align with the long-term beauty collaboration arrangement between Kering and L'Oréal. The new Gucci Beauty license, originally expected to launch in 2028, will now enter a transition window in mid-2027. Coty will handle the wind-down of existing operations, Kering will take back the brand license, and subsequent development of Gucci Beauty fragrances, cosmetics, and related beauty products will enter a new licensing and operational system.
