L’Oréal Maintains Momentum as Gucci Beauty Integration Takes Shape

L’Oréal has published its first-half results for 2026, reporting increased sales across all beauty divisions as it integrates assets from Kering Beauté. This landmark transaction has also reshaped the luxury landscape, helping Kering slash its net debt during the same period.

Completed on March 31, the transaction gave L’Oréal ownership of Kering Beauté, including the high-end fragrance house Creed. It also secured 50-year exclusive beauty licenses for Bottega Veneta and Balenciaga, adding established luxury fashion names to the group’s future development pipeline.

The Gucci Beauty license remained outside the business during the current reporting period, but an agreement reached in July has brought its planned transfer forward by about a year. The license is expected to take effect on July 1, 2027, replacing Kering’s existing arrangement with Coty. According to the Financial Times, L'Oréal aims to more than triple the sales of Gucci beauty products under its stewardship.

CEO Nicolas Hieronimus noted that L’Oréal’s first Gucci Beauty products will likely debut in 2028. The company has already assembled a dedicated team to begin work on the Gucci portfolio in September, with an initial focus on developing makeup and fragrance lines.

The strategic expansion comes as L’Oréal's sales climb on robust haircare demand and strong e-commerce performance. For the first half of 2026, the beauty giant reported a 5.8% increase in sales to €23.77 billion, highlighting double-digit growth in its online channels, a key driver in the beauty industry.

Professional Products division continued its upward trajectory, rising 11.6%. The division grew in both volume and value, driven by the ongoing premiumization of haircare and a strategic focus on elevating the salon industry through tailored services.

The Luxe Division delivered robust growth of 5.1%, fueled by an ambitious innovation strategy and the strength of its highly complementary portfolio. Fragrances continued to grow at a double-digit rate, while momentum in skincare accelerated.

Dermatological Beauty posted a 10.6% increase. In a dynamic market, growth accelerated for a third consecutive quarter as the division rolled out its latest innovations. The division saw double-digit growth across both haircare and skincare, while sun care performed exceptionally well, driven by the launch of CeraVe Sun and rising consumer demand for advanced UV protection.

"L’Oréal maintained its strong momentum and expanded its outperformance of the global beauty market," Hieronimus said. "Growth—broad-based across all categories, divisions, and regions—was fueled by two main engines: the seamless execution of our innovation strategy and our market-beating growth in e-commerce, the industry’s most dynamic channel."

"As we head into the second half, we are confident that demand for beauty remains strong," Hieronimus added. "We believe we are uniquely equipped to continue outperforming the market and, despite the current macroeconomic context, achieve another year of growth in both sales and profit."