L'Oreal(US:LRLCY) 投中网·2025-10-26 07:04Core Viewpoint - The acquisition of Kering's beauty division by L'Oréal for €4 billion (approximately ¥33 billion) is a significant strategic move in the luxury beauty market, reflecting both companies' long-term goals and the current challenges faced by Kering [3][12][17]. Group 1: Transaction Details - Kering Group announced the sale of its beauty division to L'Oréal for €4 billion, with the transaction expected to be completed in the first half of 2026 [3]. - The deal includes the acquisition of the high-end perfume brand Creed and a 50-year exclusive licensing agreement for Kering's beauty products [3][4]. - A joint venture will be established to explore opportunities in the luxury and health sectors, indicating a strategic alliance beyond mere acquisition [3][17]. Group 2: Kering's Financial Performance - Kering's beauty division generated €323 million in revenue in 2024, with a 9% growth rate in the first half of 2025, primarily driven by Creed [6]. - In contrast, Kering's overall revenue fell by 16% to €7.587 billion in the first half of 2025, with net profit plummeting by 46% to €474 million [6][7]. - The decline in Kering's performance is largely attributed to the underperformance of its flagship brand, Gucci, which saw a 26% drop in revenue [7]. Group 3: Strategic Shifts and Leadership Changes - Kering's new CEO, Luca de Meo, initiated significant reforms shortly after his appointment, including the decision to sell the beauty division [4][10]. - De Meo's leadership is characterized by a focus on core luxury goods, aiming to streamline operations and reduce costs amid financial challenges [10][11]. - The decision to divest the beauty division, despite its growth potential, reflects a strategic pivot to address Kering's broader financial issues [7][9]. Group 4: L'Oréal's Strategic Intent - L'Oréal's acquisition aligns with its strategy to penetrate the high-end beauty market, enhancing its portfolio with luxury brands [12][16]. - The company has been actively acquiring and licensing high-end fragrance brands, indicating a clear focus on expanding its presence in the luxury segment [15][16]. - L'Oréal's recent financial performance shows a 3% increase in sales, with the fragrance segment growing by 11%, underscoring the potential value of the acquisition [17]. Group 5: Market Impact - The transaction has implications for Coty Group, which has relied on Gucci's beauty products; losing this partnership could significantly impact Coty's business [18]. - The competitive landscape in the luxury beauty market is shifting, with L'Oréal positioning itself as a leader in the niche fragrance market through strategic acquisitions and partnerships [16][17].