Retail Luxury goods group Kering sells cosmetics division to L'Oréal
New boss, new course: the indebted French luxury goods group Kering is selling its cosmetics division to its competitors in order to restructure itself.
20.10.2025, 12:21
SDA
The division is going to the French cosmetics group L'Oréal for four billion euros, as Kering announced on Monday night.
Luca De Meo, who was previously head of the car manufacturer Renault, has led Kering since mid-September. The sale is expected to take place in the first half of 2026. The decision was well received by investors, with Kering's share price rising by more than five percent at the start of trading.
Kering had only established its cosmetics division in 2023, when the Group purchased the luxury perfume brand Creed for 3.5 billion US dollars. In addition to the sale, Kering and L'Oréal also want to enter into a "strategic alliance": L'Oréal will receive the licenses for cosmetic products and perfumes from the "iconic brands" Gucci, Bottega Veneta and Balenciaga in return for a fee, for a period of 50 years. CEO Nicolas Hieronimus explained that these brands offer "enormous growth potential".
At 7.6 billion euros, Kering's turnover in the first half of the year was 16 percent lower than in the same period last year, while net profit fell by 46 percent to 474 million euros. Debts amounted to 9.5 billion euros. The four billion euros from the sale should now help to reduce the debt.
