L'Oréal SA: LOR x Gucci - The scent of opportunity

Research evidence excerpt

L'Oréal SA: LOR x Gucci - The scent of opportunity

Equity Research

European Consumer Staples

8 July 2026

L'Oréal SA

LOR x Gucci - The scent of

opportunity First Look

L'Oréal gets the keys to Gucci Beauty one year early. With OREP.PA/OR FP OVERWEIGHT

NEUTRALGucci fragrances already generating c.€500m of sales today, EuropeanStaples Consumer

the more interesting question is what the brand could look Price Target EUR 450.00

like under L'Oréal's stewardship. We see meaningful long- Price (07-Jul-26) EUR 388.35 Potential Upside/Downside +15.9%

Source: Bloomberg, Barclays Researchterm upside.

Last night, L’Oréal and Kering (covered by Viktoria Petrova) announced the 50-year European Consumer Staples

exclusive worldwide licence agreement for Gucci Beauty will come one year early, effective Warren Ackerman

+44 (0)20 3134 19031 July 27. This follows the early termination of Gucci's existing licence with Coty (covered

warren.ackerman@barclays.com

by Lauren Lieberman) ahead of its original June 2028 expiry and will cover the creation,

Barclays, UK

development and distribution of Gucci fragrances and beauty. Coty will receive

approximately $400m of compensation, comprising $250m in 2026 and up to $150m in Laurence Whyatt

+44 (0)20 7773 53242027, alongside consideration for selected inventories. L’Oréal will fund around 70% of the

laurence.whyatt@barclays.com

early termination and inventory-related costs payable to Kering as part of the transition

process.

Alex Sloane

Our view: earlier access to a significant long-term opportunity +44 (0)20 3555 0645

alexander.sloane@barclays.comWe see the announcement as strategically positive for L’Oréal and estimate Gucci Beauty

generates around €500m of annual sales but with the brand's long-term potential materially