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Gucci owner Kering to sell beauty division to L’Oréal for €4bn

about 8 hours ago
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The Gucci owner, Kering, is selling its beauty division to L’Oréal for €4bn (£3.5bn), as its new chief executive, Luca de Meo, seeks to turn around the French luxury company.The deal will give the French beauty group L’Oréal Kering’s fragrance line Creed, which was founded in 1760.The deal also includes rights to develop fragrance and beauty products under Kering’s fashion labels Gucci, Bottega Veneta and Balenciaga under a 50-year exclusive licence.In a significant shift in strategy, de Meo is trying to reduce Kering’s debt burden and refocus on its core fashion business.

The new 50-year deal with L’Oréal will start once Kering’s current deal with Coty for Gucci fragrances expires in 2028.The sale will help reduce Kering’s net debt, which totalled €9.5bn at the end of June, on top of €6bn of long-term lease liabilities, easing concerns among investors.It is de Meo’s first big move since he took the helm less than two months ago, as he pivots away from the strategy of his predecessor François-Henri Pinault, whose family controls the group.Kering set up its beauty business in 2023 after acquiring the perfume maker Creed for €3.

5bn to reduce its reliance on its Gucci brand, which makes up most of its profits.But the luxury group has struggled to ramp up the business, posting a €60m operating loss for the first half of the year.The company has also been battling declining growth at its largest brand, Gucci, as demand from the key Chinese market has slowed sharply in recent years.Gucci’s revenues fell by 25% in the latest quarter.The Italian fashion house underwent a shake-up under new management and creative director, Sabato de Sarno, but he was abruptly let go just two weeks before Milan fashion week in February.

He has been replaced by Demna, who left his post at Balenciaga in the summer and last month presented his first Gucci collection, ditching the traditional catwalk format for a film by Spike Jonze.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionAnalysts at Jefferies estimate the beauty division’s potential sales at €800m and an operating profit of €280m, assuming a licence fee of 10% on Gucci sales.“This is likely to be taken positively for L’Oréal, another ‘buy and roll’ transaction in what is still a ‘hot’ fragrance category,” they said.Analysts at Bernstein said: “We believe selling Kering Beauté at around the same price paid for Creed two years ago is a bitter but necessary medicine.”The Kering share price increased by 5% in early trading in Paris, while L’Oréal rose nearly 1%.

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From After the Hunt to the Last Dinner Party: your complete entertainment guide to the week ahead

After the HuntOut nowJulia Roberts stars in the latest from Challengers director Luca Guadagnino: a cancel-culture thriller set in the aftermath of an accusation of sexual assault on a college campus. She plays a philosophy professor at Yale, whose colleague Hank (Andrew Garfield) claims he is innocent of the charges against him.FrankensteinOut nowYears in the making, decades in the dreaming, Guillermo del Toro’s splendidly visceral take on one of literature’s true greats, starring Oscar Isaac as the eponymous scientist and an unrecognisable Jacob Elordi, asthe Creature, is long and messy and brilliant. It deserves to be seen on the big screen (though a Netflix release is following hot on the heels of this cinema release if you do miss it).SunlightOut nowComedian Nina Conti makes her directing debut with a deliciously dark road trip comedy that isn’t for the faint of heart

2 days ago
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The Guide #213: Should we mourn the demise of TV channels?

For seasoned tea-leaf readers of the future of TV in the UK, two stories will have stood out this week, swirling around at the bottom of their cups. There was the news that MTV is shutting down its music channels – sad for those of us who misspent their youth watching them, though hardly surprising either, given MTV’s decades-long shift away from music and towards rolling repeats of Teen Mom and shows about tattooists. And there was a media piece in the Guardian about the demise of British TV’s once-gold plated 9pm slot, which for the first time last month failed to achieve a rating of 1m or more among any of the major broadcasters.That second story was a little surprising. Overnight viewing figures are in constant decline in the streaming age, but even by those standards, not one solitary rating over 1m is eye-catching

3 days ago
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Jimmy Kimmel on the Republicans: ‘So much greed and hypocrisy and duplicity’

Late-night hosts spoke about Donald Trump’s attempts to transform the White House and how he was “cashing in bigly” on being president.On Jimmy Kimmel Live! the host spoke about Trump’s “goon squad” indicting his former national security adviser John Bolton while the president was still “brazenly lying about the economy”.This week Trump also met with Vladimir Putin, something he bragged about on social media before claiming that he is the only president to have ended a war. “All the other wars ended mysteriously by themselves,” Kimmel said.Trump also “still has his eye on the ballroom” hosting an event for investors willing to help fund a renovation

3 days ago
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Laurence Fox’s libel claim over racism accusations to go to retrial

Laurence Fox’s libel claim after he was called a racist on social media will go to a retrial, the court of appeal has ruled.The former actor was successfully sued by Simon Blake, who is now the chief executive of Stonewall, and the drag artist Crystal over a row on the social media platform Twitter, now called X.Fox, 47, called Blake and the former RuPaul’s Drag Race contestant, whose real name is Colin Seymour, “paedophiles” in an exchange about a decision by Sainsbury’s to mark Black History Month in October 2020.Fox called for a boycott of the supermarket and was called “a racist” by the men, as well as by the broadcaster Nicola Thorp, before he responded with the “paedophile” tweets which led to the initial libel claims.In two judgments in 2024, Mrs Justice Collins Rice ruled in favour of Blake and Seymour, and said Fox should pay them £90,000 each in damages

3 days ago
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Blue plaque to be unveiled at home of Thomas the Tank Engine creator

Eighty years since the first of a beloved fleet of trains was introduced to the world, a national blue plaque is being unveiled at the redbrick house in Gloucestershire where the Rev W Awdry worked on his railway stories.The addition of the new Historic England plaque to Wilbert Awdry’s old address in Stroud is expected to prompt fans of Thomas the Tank Engine and his fellow locomotives to make a pilgrimage to the street to pay their respects.Awdry’s daughter, Veronica Chambers, said the family was delighted: “It’s an enormous privilege and an honour. Father would have been very surprised.”The unveiling ceremony at Awdry’s former home, named Sodor after the fictional island his anthropomorphic engines inhabited, also forms part of this year’s Railway 200 celebrations

4 days ago
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Jimmy Kimmel: ‘Trump’s inner circle knows how dangerous the incessant misinformation from Fox News can be’

Late-night hosts recapped the many vile leaked messages from a Young Republicans group chat and Donald Trump’s ongoing Fox News-fueled delusions.“It’s hard to imagine, but one day this avalanche of insanity we get buried under, each day deeper and deeper than the next, will one day be taught in history books in every place other than Florida,” said Jimmy Kimmel on Wednesday evening. “What a stupid time to be alive.”To wit, Kimmel cited a Daily Beast report that Trump’s inner circle has become “alarmed” by the impact of Fox News on his decision-making. “Trump officials became concerned when Trump asked if he could get a reverse mortgage on the White House and one of those Terry Bradshaw walk-in tubs,” Kimmel joked

4 days ago
societySee all
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Don’t cut London’s affordable housing quotas, Labour MPs urge ministers and mayor

about 13 hours ago
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Will affordable housing be the casualty as London tackles its building emergency?

about 13 hours ago
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Dr Jill Tattersall obituary

1 day ago
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This gift to housebuilders from Labour is shameful | Letters

1 day ago
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Sue Barker obituary

1 day ago
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Betfred says gambling tax rise in budget will force it to shut all its UK shops

1 day ago