L’Oréal plans to more than triple sales of Gucci-branded beauty products following the acquisition of the licence from Kering next year, as the French cosmetics giant reported strong first-half results despite challenges such as US tariffs and geopolitical tensions.

The world’s largest beauty company finalized its €4 billion purchase of Kering’s beauty business earlier this year, acquiring control over the beauty licences for Gucci, Balenciaga, and Bottega Veneta. Gucci’s beauty line, currently licensed to Coty, generated approximately €600 million in sales last year, a fraction of the brand’s fashion revenue. By comparison, L’Oréal’s existing licence for Saint Laurent beauty, held since 2008, generates around €3 billion annually.

Nicolas Hieronimus, L’Oréal’s chief executive, said the company aims to elevate Gucci into a multibillion-euro beauty brand. He indicated that the first products under L’Oréal’s stewardship would likely launch in 2028, following the official transfer of the licence in July 2027. Preparations for the brand relaunch will begin in September, with an initial focus on expanding makeup and fragrance offerings.

In the second quarter, L’Oréal reported adjusted like-for-like sales growth of 6.3 percent, reaching €11.6 billion, exceeding market expectations. The results included an adjustment for timing effects related to an ongoing IT system overhaul. The company highlighted strong performances in its professional products and dermatological divisions, both posting double-digit growth.

L’Oréal’s luxury segment, its largest division, saw a 4.7 percent increase in sales on an adjusted basis. Growth was driven by double-digit gains at niche brands such as Aesop and Creed. The company also experienced an uptick in sales in China, which CEO Hieronimus attributed to improving consumer confidence tied to a stronger domestic stock market and advances in technology sectors, including artificial intelligence and robotics.

However, L’Oréal noted a €30 million negative impact on sales in the second quarter from the ongoing conflict in the Middle East. This decline was primarily due to reduced consumer spending in travel retail locations and luxury malls across the region.

Overall, L’Oréal’s results reflect resilience amid external pressures, with strategic moves to expand its luxury beauty portfolio through high-profile brand acquisitions and product development.