L'Oréal sets multibillion-euro ambitions for Gucci Beauty as beauty M&A heats up
L'Oréal has outlined plans to relaunch Gucci Beauty after gaining early access to the brand's licence from Coty, as Puig posts fragrance-led growth and Elemis reportedly nears a sale to Pai Partners.
L'Oréal chief executive Nicolas Hieronimus has given a timeline for the relaunch of Gucci Beauty, targeting a first new launch as early as 2028 after the company gained early access to the brand's licence, according to Cosmetics Business. Hieronimus said he wants to turn Gucci Beauty into a multibillion-euro brand, a statement of intent that reflects both L'Oréal's confidence in prestige fragrance and its belief that Gucci's beauty licence, previously run by Coty, has been under-exploited.
The ambition lands alongside fresh results from Puig, which reported revenue up 4.4% in the first half of 2026, driven by strong fragrance demand from Carolina Herrera and robust make-up sales from Charlotte Tilbury, even as its skincare division softened in the second quarter. Together the two updates confirm that fragrance remains the most reliable growth engine in prestige beauty even as skincare, long the category's most profitable segment, shows signs of strain from cautious consumer spending and a crowded competitive field.
Separately, British skincare brand Elemis, known for its Pro-Collagen Marine Cream, is reportedly in exclusive talks with private equity firm Pai Partners about a potential sale, Cosmetics Business reported, citing a new report. Elemis has previously changed hands between strategic and financial owners, and renewed private equity interest suggests investors still see room to grow a heritage British skincare name internationally even as organic category growth slows.
Taken together, these moves point to a beauty sector bifurcating: fragrance and colour cosmetics attracting fresh brand investment and licensing bets, while skincare assets increasingly change hands as investors reassess growth prospects. What to watch is whether L'Oréal's Gucci relaunch delivers on its billion-euro ambition, and whether the Elemis talks with Pai Partners are confirmed.
Sources
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