Gucci Beauty says goodbye to Coty early: the future is already in L'Oréal's hands The early exit is worth $400 million
Cotyhas decided to give up its Gucci Beauty license one year ahead of schedule. The agreement, originally set to expire in 2028, will now end on June 30, 2027, allowing L’Oréal to take over from July 1, 2027. In return, Coty will receive approximately $400 million as compensation for the early termination of the contract. At first glance, this may seem like a generous exit payment, but it actually reflects a well-defined industrial strategy. Over the past few years, Coty has invested heavily in Gucci Beauty, relaunching the makeup business in 2019 and helping grow the brand’s beauty business by more than 60%. Today, however, its priorities have shifted. The company is undergoing a major reorganization and plans to use a significant portion of the proceeds to reduce debt while focusing its resources and investments on brands considered more strategic. Rather than continuing to manage Gucci Beauty until the license’s natural expiration, Coty has chosen to monetize one of its most valuable assets and free up capital to support its own turnaround. In the end, it appears to be a decision that benefits everyone.
L’Oréal is investing in the future
For L’Oréal, the advantage extends far beyond gaining control twelve months earlier. The French group has secured an exclusive 50-year license,an almost unimaginable timeframe in an industry where partnerships evolve quickly and creative directions often last less than a single collection. As a result, Gucci Beauty becomes one of the cornerstones of L’Oréal’s long-term beauty strategy. In reality, the groundwork had already been laid in 2025, when Kering transferred its beauty division to L’Oréal. Coty’s early exit simply accelerates a process that was already underway, allowing the two groups to begin shaping the brand’s next chapter ahead of schedule. This means more time to develop new fragrances, makeup collections, innovation, research, and global distribution without waiting for the original agreement to expire.
A new chapter for Gucci Beauty
This deal says a great deal about the current state of the luxury beauty industry. Today, fragrances and makeup are no longer just fashion accessories, they have become one of the most profitable businesses for major luxury houses. That is why securing Gucci Beauty for the next fifty years is worth far more than the $400 million paid to terminate the previous agreement early. With L’Oréal’s expertise in research, innovation, and international distribution, Gucci aims to further strengthen its global presence and make beauty an even more central part of the brand’s identity. In other words, this early transition is not simply about changing license holders, it is about giving L’Oréal a one-year head start on what is likely to become the next major chapter in Gucci Beauty’s evolution.