Core Viewpoint - The legal battle over Gucci's cosmetics rights highlights the complex interests within the international beauty industry, following Kering's announcement of a €4 billion deal with L'Oréal to acquire long-term beauty and fragrance rights for Gucci and other luxury brands, despite existing agreements with Coty until 2028 [1][5]. Group 1: Legal Dispute - Kering's agreement with L'Oréal involves a €4 billion buyout of beauty rights for Gucci and two other brands for 50 years, which Coty claims violates their existing contract [1][5]. - Coty has filed a lawsuit against Kering and Gucci in the UK, asserting their rights under the current agreement, which is set to last until 2028 [1][2]. - Both Kering and Coty have made strong statements regarding their commitment to defend their respective positions in this dispute [1][2]. Group 2: Financial Performance - Coty's financial performance shows a net revenue of $6.118 billion for the fiscal year 2024, with a 10% year-on-year increase, and the high-end beauty segment contributing $3.857 billion, up 13% [5]. - Gucci's fragrance line, particularly the "Gucci Bloom" series, has been a significant revenue driver for Coty, indicating the brand's strong market presence [5][8]. - Kering's beauty division reported revenues of €323 million in 2024, primarily from the recently acquired Creed brand, with a 9% year-on-year growth in the first half of 2025 [8]. Group 3: Strategic Shifts - Kering's establishment of Kering Beauté and the acquisition of Creed for €3.5 billion reflect a strategic shift towards in-house beauty operations [8]. - The appointment of Luca de Meo as CEO has led to a strategic overhaul, culminating in the decision to sell the beauty business to L'Oréal for €4 billion [8][9]. - The impending sale to L'Oréal is expected to be completed in the first half of 2026, with cash payments and future royalties to Kering [8].