Coty, the global beauty company that owns brands such as Calvin Klein, Burberry and Hugo Boss, has dismissed any speculation that it might lose its licence to produce and distribute Gucci cosmetics in the near future.
“There will be no discussion on the renewal of any of our licences before at least 5 years”, Coty CEO Sue Naby told journalists on Thursday, in response to a question about whether Kering, the owner of Gucci, could take back the licence for its fashion label’s beauty products,
Coty has been the exclusive partner of Gucci for its fragrances and makeup since 2006, and the licence agreement was last renewed in 2016 for another 10 years. Gucci is one of Coty’s most successful and profitable brands, generating over $1 billion in annual sales.
The question arose after Kering announced last week that it had acquired Creed, a high-end fragrance label, marking its first major step in building an in-house cosmetic business. Kering, which also owns brands such Saint Laurent, Balenciaga and Alexander McQueen, has been expanding its presence in the luxury sector, while Coty has been undergoing a strategic transformation to focus its core categories and markets.
Coty, which is exploring a secondary listing in Paris, is holding an investor day in the French capital on Thursday to present its vision and growth plans. The company said it expects to return to organic sales growth in fiscal 2024 and achieve mid-single digit growth in the long term.