L'Oreal(US:LRLCY) Zheng Quan Ri Bao·2025-10-20 16:43Group 1 - L'Oréal Group and Kering Group announced a long-term strategic partnership in the luxury beauty sector, with Kering selling its beauty business to L'Oréal for €4 billion (approximately 33.3 billion RMB) [1] - L'Oréal will acquire the Creed brand and gain exclusive rights to develop perfumes and beauty products for Kering's brands such as Gucci, Bottega Veneta, and Balenciaga for a period of 50 years [1][2] - The transaction is expected to be completed in the first half of 2026, and both companies plan to explore further collaboration opportunities in luxury goods, health, and longevity through a 50-50 joint venture [1] Group 2 - Kering's beauty division, established in 2023, reported total sales of €32.3 million in 2024, a significant increase of 421% year-on-year, primarily driven by Creed [2] - Despite the growth in the beauty sector, Kering's overall sales declined by 16% year-on-year, and net profit fell by 46%, indicating financial pressure [2] - Kering's new CEO, Luca de Meo, is focused on improving the company's balance sheet, making the sale of the underperforming beauty business a necessary step [2][3] Group 3 - The partnership is expected to strengthen L'Oréal's leadership position in the luxury beauty market, leveraging the potential of brands like Gucci and Bottega Veneta [2] - Analysts believe that this collaboration will help Kering gain a larger market share in the luxury sector amid overall industry pressures [3]