Kering sells its beauty division to L’Oréal for $4.7 billion

The French luxury group hands over the Creed brand and focuses on a new strategy to relaunch its business

Kering, the French luxury group that owns brands like Gucci, has announced the sale of its beauty division to L’Oréal for €4 billion (about $4.7 billion). The deal, described as a long-term strategic alliance, marks the first major move by new CEO Luca de Meo, who took office in September.

Kering launched its beauty unit only in 2023, after acquiring high-end fragrance brand Creed for approximately €3.5 billion. However, the group has since faced more urgent challenges, including slowing demand in China, the threat of higher U.S. tariffs, and a growing debt burden that has worried investors.

Through this deal, L’Oréal — the global leader in cosmetics — will add a prestigious name like Creed to its portfolio, while Kering will refocus on boosting the performance of its core luxury fashion brands.

“Joining forces with the global beauty leader will allow us to further develop fragrances and cosmetics for our maisons, unlocking their long-term potential,” said de Meo.

The CEO, who replaced François-Henri Pinault, is expected to unveil his full strategic vision in spring 2026. Meanwhile, the Pinault family remains firmly in control of Kering, holding 42% of the company’s capital and 59% of voting rights.