Recently, a Coty Inc. subsidiary has filed a lawsuit against Gucci and its parent company Kering over issues related to the Gucci beauty and fragrance license, escalating tensions between the parties ahead of the license’s scheduled expiration in 2028.
HFC Prestige International Operations Switzerland Sàrl, a Coty subsidiary, lodged the case on Oct. 20 in a U.K. commercial court against Gucci America Inc., Guccio Gucci SpA, and Kering SA. According to public records, the case concerns general commercial contracts and arrangements, though specific allegations have not yet been made public.
The legal action follows the announcement of a new strategic alliance between Kering and L’Oréal, under which L’Oréal will gain exclusive rights to create, develop, and distribute Gucci fragrances and beauty products for 50 years once Coty’s current license expires. At the time of the announcement, Kering and L’Oréal jointly emphasized that all existing contractual obligations with Coty would be honored.
When asked about the lawsuit during Coty’s first-quarter fiscal 2025–26 earnings call, CEO Sue Nabi declined to comment on ongoing litigation but reaffirmed the company’s determination to uphold its contractual rights. “We will defend our rights until the last day, until the last hour of the contract,” she said. Nabi also stressed that Coty continues to operate the Gucci beauty license “under the same structure already in motion” and aims to resolve matters amicably with Kering.
In response, Kering issued a statement rejecting Coty’s claims, calling them “unfounded allegations” and vowing to “vigorously defend its rights” in the U.K. court proceedings.
Analysts have speculated whether the lawsuit could lead to an early termination of Coty’s Gucci license, which currently represents about 8 percent of Coty’s total sales and 11 percent of its profits, according to Evercore IRI. Coty has held the Gucci beauty and fragrance license since 2016.
While Coty remains open to discussions that could “create real value” for the company, Nabi emphasized that there is “no change to Coty’s existing license.” Meanwhile, L’Oréal CEO Nicolas Hieronimus and Kering COO Jean-Marc Duplaix both clarified that the Gucci license will remain with Coty until its official expiration in 2028.
