Luca de Meo moves to reshape the luxury group
Luxury conglomerate Kering, owner of Gucci, Bottega Veneta, and Saint Laurent, is close to finalizing a €4 billion deal to sell its beauty division to L’Oréal, according to Financial Times. The sale would represent a major shift for the Paris-listed company, which had previously planned to grow its cosmetics business internally.
The transaction marks one of the first significant steps taken by new CEO Luca de Meo, appointed in September 2024 after a successful tenure at Renault. His mandate includes revitalizing Kering’s struggling operations and reducing the company’s debt, which reached €9.5 billion in June.
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From building to selling: a change in vision
Former CEO François-Henri Pinault, now Kering’s chairman, launched the in-house beauty division in 2023, making a bold move into perfumes and skincare. The initiative included the €3.5 billion acquisition of Creed fragrances.
Industry insiders say L’Oréal, the global beauty leader, would expand the cosmetics lines for Kering brands such as McQueen and Bottega Veneta, while Gucci’s beauty license remains with Coty until 2028.
Kering has faced declining sales at both Gucci and Saint Laurent, with first-half 2025 revenue down 15% and operating margins dropping to 12.8%.
“We will have to continue reducing debt and, where necessary, rationalize, reorganize and reposition some of our brands,” Luca de Meo told shareholders in September.
Photo: Pilling & Co
