Article Summary: Coty confirmed Gucci Beauty's license will transfer to L'Oréal a year ahead of schedule, while posting a surprise revenue increase and naming Soraya Benchikh as its new CFO.
Coty just confirmed the industry’s worst-kept secret. Gucci Beauty is leaving for L’Oréal a full year ahead of schedule.
Coty confirmed its Gucci Beauty license will transfer to L’Oréal in mid-2027, a year ahead of schedule, as the company posted a surprise revenue increase and named former British American Tobacco finance chief Soraya Benchikh as its new CFO, effective September 1, 2026.
This news matters because Gucci Beauty has long been Coty’s crown jewel license. Furthermore, the timing lands during a quarter that otherwise beat Wall Street expectations, giving Coty a rare bright spot to lean on.
Why Is Gucci Beauty Leaving Coty?
Gucci and L’Oréal entered a 50-year exclusive beauty license in July, moving the transition up by one year. The original license was set to expire with Coty on June 30, 2028. Instead, Coty will continue operating Gucci Beauty until at least June 30, 2027, under a $400 million early-transition agreement with Kering.
According to WWD, interim CEO Markus Strobel said the Gucci Beauty exit will cause “a step-down in sales and profit in FY28.” Coty plans to offset that impact through cost reductions and by leaning harder into newer portfolio additions, including Marc Jacobs Beauty and fragrances under Swarovski, Etro and Marni.
Who Is Coty’s New CFO?
Soraya Benchikh becomes Coty’s chief financial officer effective September 1, 2026, succeeding Laurent Mercier. She most recently served as CFO of British American Tobacco, following nearly four years at Diageo. Per Business of Fashion, the appointment follows Coty’s July 2 restructuring, which consolidated research, development and supply chain into a single function.
Benchikh started her finance career at General Electric and Gillette before moving through senior roles at BAT, including President of BAT France. Strobel called her “a seasoned global executive with a strong track record of financial and operational leadership,” positioning her as the right fit for Coty’s post-Gucci era.
What Does This Mean for Gucci Fragrance and Makeup?
Coty’s Q4 net revenue rose 1% to $1.26 billion, beating Wall Street estimates of $1.19 billion. However, the company reported a net loss of $144.3 million for the quarter, wider than the $72.1 million loss reported a year earlier. Full-year sales fell 5% to $5.8 billion, and Coty is now calling fiscal 2027 a “transition year.”
Coty still holds licenses for Hugo Boss, Burberry, Marc Jacobs and Calvin Klein fragrances, giving the company a broad portfolio to lean on once Gucci departs. A strategic review is also underway that could lead to the sale of consumer beauty brands such as CoverGirl and Rimmel, as Coty narrows its focus to its stronger-performing categories.
The ownership of Gucci fragrance remains straightforward on paper, but the operational handoff between Coty and L’Oréal will take shape gradually through mid-2027. Runway will track how this transition affects Gucci’s beauty and fragrance offerings as the timeline unfolds. For more of this year’s biggest designer and beauty industry news, visit Runway Magazine’s designers coverage and Runway’s Gucci Cruise 2027 coverage.
