A high-end Bottega Veneta perfume is hoped to be launched by the end of the year, followed by the first fragrances developed in-house for Balenciaga and Alexander McQueen. Duplaix told analysts that 2023 had been a “decent” year for Gucci Beauty, which is operated by Coty, despite the unit not launching enough new products.

The focus, however, was more on the development of Kering Beauté, the French group’s new arm was formed in February last year that is helmed by Raffaella Cornaggia, a longtime executive of American beauty conglomerate Estée Lauder. In July 2023, Kering splurged a reported $3.8 billion to acquire Creed, the luxury perfumery brand.

Duplaix said next year, Creed’s sales are expected to surpass €300 million ($323 million), and that it had secured a location for a freestanding store in Paris. He said that synergies from Creed – originally founded in 1760 – were already being leveraged to accelerate the development of Bottega Veneta fragrances.

Duplaix declined to comment on terms of Gucci’s beauty license with Coty, but hinted that a potential homecoming for the unit was still being explored. He said once the group had reached a “critical scale” for beauty, it would give the company space to consider “all options” around its beauty brands that are currently outsourced.

Coty’s Gucci licence is thought to expire in 2028 according to market sources; L’Oréal’s agreement with YSL Beauté is a long-term deal.

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For Coty, Is It Goodbye Gucci?

With its new beauty division, Kering clearly wants to exert more control over its fashion houses’ beauty businesses. That could spell trouble for the companies that currently hold lucrative fragrance and cosmetics licenses.