L’Oréal Group: Contrasted 2025 Results and Stated Ambition for Gucci Beauty

On February 15, its CEO, Nicolas Hieronimus, told analysts at a conference that the group would like to acquire the Gucci Beauty license before 2028, when the contract currently held by Coty expires. Discussions are reportedly underway between Coty and Kering, Gucci's parent company.

On the financial side, although results remained solid, they disappointed the markets. Revenue for 2025 stood at €44.05 billion, up slightly by 1.3% compared to the previous year. Net profit fell by 4.4% to €6.13 billion.

It was the fourth quarter in particular that prompted mixed reactions from investors. Sales for the period reached €11.24 billion, representing a moderate increase of +1.5% in published data and +6% in comparable data. Analysts had expected higher figures, notably the American investment bank Jefferies, which had anticipated 8% growth in the last quarter of 2025, which was supposed to represent the annual peak in sales.

In detail, the Dermatological Beauty division confirmed its role as a driving force, thanks to the solid performance of brands such as La Roche-Posay and CeraVe. This division posted growth of 11.5%, well above forecasts. Dermatological brands are benefiting from the rise in medical recommendations and demand for specialized care, particularly in North America and Asia.

In this context, the prospect of an early merger with Gucci Beauty appears strategic for L'Oréal. Gucci's beauty license was a key element of last year's agreement between Kering and the beauty group, as the Pinault family's heavily indebted luxury group sought to strengthen its financial structure. The division, which includes luxury fragrances such as House of Creed, as well as beauty and fragrance licenses from Kering brands such as Gucci, is now considered a “discontinued operation” in the group's 2025 results.

For L'Oréal, integrating Gucci Beauty would expand its portfolio of luxury brands, which already includes many prestigious and profitable international names.

As the global luxury beauty market, which could reach €636 billion by 2030, enters a more selective growth phase, the ability to secure strategic licenses could prove decisive in the next growth cycle.

Alongside these portfolio challenges, L'Oréal is accelerating its technological efforts. At CES 2026 in Las Vegas, the group presented two major innovations harnessing the power of infrared light: the Light Straight + Multi-Styler, dedicated to hair care and styling, and the LED Face Mask, designed to optimize skin care. These technologies were recognized with a CES® 2026 Innovation Award, confirming the group's ambition to establish itself as a leading player in Beauty Tech.

In the same vein, L'Oréal also announced the creation of a Beauty Tech hub in India. This new center will be tasked with developing beauty solutions based on artificial intelligence, drawing in particular on generative AI and agentic AI, in order to accelerate the personalization of products and services on a global scale.