L'Oréal CEO Nicolas Hieronimus has called the company’s €4bn acquisition of Kering Beauté a “win-win partnership” during Kering’s Capital Markets Day presentation.
The French beauty giant’s top boss spoke at the high-profile corporate event in Florence, Italy, on 16 April, in which Kering outlined its turnaround strategy and unveiled a new beauty division.
Hieronimus’ comments were focused on the €4bn Kering Beauté deal, which was finalised on 1 April 2026, and provided L’Oréal access to the House of Creed and the beauty and fragrance licenses for House of Kering.
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“Together with the L'Oréal Luxe teams, we are very excited to be entrusted with the beauty business of Kering's magnificent brands,” said Hieronimus.
“They join us at a perfect moment, as they will benefit from the momentum, drive and vision that [Kering CEO] Luca de Meo has instilled.
“This is a true win-win partnership for L'Oréal.”
This also includes the rights for L’Oréal to enter into a 50-year exclusive licence for the creation, development, and distribution of fragrance and beauty products for Gucci.
This will commence after the expiration of the current licence with Coty, which is set to end in 2028.
Through the partnership, Kering and L’Oréal will also begin to explore development opportunities in the fields of wellness and longevity science.
Hieronimus added: “It represents a strategic reinforcement of our luxury leadership, allowing us to bring our unique beauty expertise to Kering’s couture DNA.
“Adding these new jewels to our crown, including Creed, a true royalty in luxury fragrance, creates a powerful engine for increased growth and profit for Kering.
“This means higher royalties, enhanced global visibility for its iconic houses, and the opening of new frontiers in wellness and longevity in partnership with the world leader in beauty.
“So we have every reason to be excited about the journey that lies ahead.”
What else was unveiled at Kering’s Capital Markets Day
Kering also unveiled the future of its beauty ambitions and outlined further details of its partnership with L'Oréal at the Capital Markets Day.
The Balenciaga owner’s fresh beauty arm will be housed under Kering Next, a new division that aims to unlock the “full beauty potential” of Kering’s brands through the sale of Kering Beauté and a strategic partnership with L’Oréal established in October 2025.
“[Beauty is] a category with tremendous potential for our houses,” said de Meo.
“It is also a category where scale, science and industrial power determine the winners.
“So, over the past three years, we have built a solid foundation with Creed, and with the first launches of Bottega Veneta and Balenciaga.
“This led us to the conclusion that to unlock the full beauty potential of our brands, the most valuable part is a long-term partnership with L'Oréal.
“This partnership gives us immediate access to the world's most advanced beauty platform, in research and development, in manufacturing, in global distribution, as well as an unmatched media reach.
“Because of their investment, it positioned our brands for accelerated growth and long-term success while delivering meaningful royalty potential.”
De Meo used the example of YSL Beauty to demonstrate L'Oréal’s brand scaling potential, which he claimed generates €3bn annually in revenues.
Kering’s wider turnaround strategy
Kering Next forms part of Kering’s new turnaround strategy, ReconKering, which is designed to “restore clarity and rebuild execution discipline”.
Kering stated this has been made in response to a challenging market showing “deep transformation and stronger competitive dynamics”.
The initiative aims to rebuild brand desirability, sharpen execution, and deploy a more focused, more disciplined operating model.
This has already been seen with Kering reshaping its organisational architecture and sharpening product and pricing clarity in recent months, according to the business.
“ReconKering is our way of reconnecting with what makes Kering unique, while embracing what luxury is becoming,” said de Meo.
“This plan brings the two together with the agility of a challenger, a renewed focus on desirability and a stronger commitment to execution.
“We approach this next phase with ambition, humility and a deep confidence in our teams, who will be the driving force behind the group’s return to growth and improved performance.”
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