L’Oreal SA’s €4 billion ($4.7 billion) purchase of Kering SA’s beauty business marks the largest in a string of recent deals by the French cosmetics group, as it builds out its range of luxury brands.
Inside Creed’s London flagship store – Dr
The acquisition showed the owner of Maybelline and Lancôme is willing to pounce when prized assets are up for grabs at an attractive price. Creed’s valuation was lower in the deal than the €3.5 billion Kering paid for it in 2023, a person familiar with the talks said, declining to say by how much.
L’Oreal Chairman Jean-Paul Agon approached Kering’s then CEO Francois-Henri Pinault in the past year about striking a beauty deal, people familiar with the transaction said. Pinault is still chairman of Kering but was replaced as CEO last month by Luca de Meo. The talks accelerated in September, one person said.
The all-cash purchase was billed as a beauty and wellness partnership between Kering, the owner of Gucci, and L’Oreal. Beyond Creed, L’Oreal will also get 50-year licenses to develop and market beauty offerings for Kering’s fashion brands, including Bottega Veneta, Balenciaga and eventually Gucci — once that license is freed from its partnership with Coty Inc.
The Gucci license is set to become available in 2028 at the latest, according to the deal terms, people familiar said.
Berenberg analysts led by Nick Anderson estimate Creed is being valued at €2.5 billion in the sale, implying a writedown of around €1 billion on the 2023 purchase price, they said Monday in a note. They estimate the Gucci license is worth €1.5 billion.
The deal “comes at a price, namely a one-third write-down of an asset bought just two years ago,” the analysts said.
Kering investors still welcomed the deal, sending shares as much as 5.5% higher in Paris. With the sale, leverage will come down close to 1.5 times earnings before interest, tax, depreciation and amortization from 2.3 times at the end of last year, according to estimates by Banco Santander SA.
The move to offload the beauty business is “positive, not only to improve the balance sheet, but also to focus on its core luxury brands,” Santander analyst Mariano Szachtman wrote.
Representatives for L’Oreal and Kering didn’t immediately respond to requests for comment. A Coty representative declined to comment. The companies will also explore business opportunities in the fields of luxury, wellness and longevity, they announced.
Kering has struggled in recent years with slumping sales at its biggest brand, Gucci, and an increasing debt load after a series of pricey deals, including Creed and premium property acquisitions. De Meo vowed last month to slash debt and costs.
L’Oreal, meantime, has been on an acquisition spree. It bought Aēsop in 2023 at an enterprise value of about $2.5 billion, and recently purchased South Korean brand Dr. G, a majority stake in Medik8, and minority stakes in Omani high-end fragrance maker Amouage, French fashion brand Jacquemus, and Galderma Group AG, which specialises in injectable skin fillers.
Some of these recent purchases are part of L’Oreal’s growing luxury portfolio, which is overseen by Cyril Chapuy.
Investors are also waiting for a resolution as to who will buy an initial 15% stake in Giorgio Armani SpA following the founder’s death last month. L’Oreal, which has a license with Armani to market its fragrance, makeup and skincare products until 2050, was named as a one of the preferred buyers in Giorgio Armani’s will along with EssilorLuxottica SA, another license holder, as well as LVMH Moët Hennessy Louis Vuitton SE.
On the Kering deal, L’Oreal was advised by Bank of America, Rothschild and PVC PH. Villin Conseil. Kering was advised by Centerview and Evercore.
Delsey turns its focus to international markets. The luggage brand has just announced the appointment of its new global managing director, Gilles Bariguian. He will lead the group into a new phase of accelerated international expansion, a move upmarket, and towards profitable growth as the brand approaches its 80th anniversary in 2026.
Gilles Bariguian brings extensive experience in luxury and international markets – Delsey
“I am delighted and honoured to be working with the teams to elevate the brand and open a new chapter of global development in a rapidly changing mobility market. Delsey is no longer just a travel brand; it now caters to every moment of mobility, a market that has evolved significantly since the Covid-19 period,” said Gilles Bariguian.
Diversifying its international presence
With 20 years’ experience at Procter & Gamble across four continents, and roles at Guess EMEA, Etoile Group (specialising in luxury in the Middle East), and Cenomi (a department-store chain in Saudi Arabia), Delsey’s new global managing director will be tasked with steering the Parisian brand’s international expansion. At the same time, he will continue his consulting work with the Saudi Fashion Commission and its 100 Brands programme.
With its strongest presence in the US (2,561 points of sale) and Europe (1,688), the brand counts just over 300 points of sale in Asia and 111 across the Arabian Peninsula.
Beyond international expansion, the objectives of the new global managing director are to accelerate digital transformation, broaden the product portfolio, and build sustainable, profitable growth for Delsey, a company founded in 1946.
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Amazon has agreed with Italy’s tax collection agency to pay 510 million euros ($582 million) to settle a tax dispute in the country, two sources close to the matter said on Wednesday.
Amazon logo is seen in this illustration created on February 11, 2025 – REUTERS/Dado Ruvic/Illustration/File Photo
However, in an unusual development, Milan’s prosecutors are in disagreement with the accord between the revenue agency and the U.S. tech company and plan to continue their investigation, two other sources said.
The prosecutors, who suspect evasion amounting to some 1.2 billion euros related to 2019-2021, expect to wrap up their probe early next year, according to the second two sources familiar with the investigation.
The prosecutors are also conducting two other investigations into the company – one involving alleged tax evasion relating to 2021-2024, and another involving alleged customs and tax fraud involving Chinese imports.
Topshop will be back in Australia from next February with a comeback launch in all 56 of key department store retailer Myer’s stores.
Cara Delevingne, the face of Topshop’s revival – Topshop
It’s the latest development in a relaunch story that has seen it inking online and physical store deals in multiple countries. It’s currently available physically in the UK, Ireland, Belgium, France, Denmark, Germany, the Baltic states, and Spain, and is continuing a long-term link-up with Nordstrom in the US. It’s planning around 20 international relaunches in 2026.
As with its relaunch in other countries, the Australian offer will be built around “sharp tailoring, statement outerwear and reworked denim” with long-time popular jeans styles.
Topshop’s brand director Henrik Matthiesen called the Myer deal an “important milestone as we reintroduce Topshop to the world. Working with Myer allows us to bring our renewed vision to the Australian market with energy, relevance and a stronger connection to how people want to dress today, all while building on Topshop’s iconic British heritage”.
And the department store chain’s chief merchandise officer Belinda Slifkas highlighted how the retailer is continuing to “refresh and elevate our womenswear offering with globally relevant, fashion-forward labels. We’re seeing a growing number of younger customers choosing Myer, and with Topshop’s arrival, we’re confident this will further strengthen our appeal and deepen our connection with this customer group”.
Topshop was last available in Australia as far back as 2020 and its return to the market will also see it available online there as well as in physical stores.
Its relaunch this year has grabbed headlines all the way as it has staged high-profile events like its Trafalgar Square runway takeover in the summer. It has also attracted plenty of interest by linking up with higher-end retailers such as Liberty, Printemps Haussmann, and Magasin du Nord.
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