L'Oreal(US:LRLCY) Hua Xia Shi Bao·2025-10-22 05:28Core Insights - Kering Group and L'Oréal Group have announced a long-term strategic partnership in the high-end beauty and health sectors, with L'Oréal acquiring the luxury fragrance brand Creed for a total transaction value of €4 billion (approximately ¥33.23 billion) [2][5][10] Group 1: Strategic Partnership - The partnership allows Kering to focus on its core strengths, enhancing the creativity and appeal of its brands while Creed will benefit from L'Oréal's resources to accelerate its global market expansion [3][6] - The agreement includes a 50-year exclusive licensing deal for L'Oréal to develop, produce, and distribute Gucci fragrance and beauty products after the current agreement with Coty expires [5][6] Group 2: Financial Performance - Kering has experienced declining performance, with revenue dropping from €20.3 billion in 2022 to €17.2 billion in 2024, and net profit falling from €3.614 billion to €1.133 billion [10][11] - The beauty division of Kering reported an operational loss of €60 million in the first half of the year, indicating challenges in managing its beauty business [11] Group 3: Market Dynamics - The acquisition is seen as a strategic move for L'Oréal to enhance its brand portfolio and market share in the high-end beauty segment, leveraging Kering's luxury brand assets [8][9] - Experts suggest that the sale allows Kering to streamline its operations and focus on its core luxury goods business, which may improve its financial metrics [11][12]