PARIS — A Coty Inc. subsidiary has launched a lawsuit against Gucci and its parent company Kering, which pertains to the Gucci beauty and fragrance license, in a U.K. commercial court.
HFC Prestige International Operations Switzerland Sàrl, a subsidiary of Coty, filed a case against Gucci America Inc., Guccio Gucci SpA and Kering SA on Oct. 20 in the U.K., according to public records. The case type deals with general commercial contracts and arrangements.
A copy of the lawsuit, and what it specifically alleges, could not immediately be obtained.
The news comes after it was revealed on Oct. 19 that as part of a new Kering-L’Oréal alliance, L’Oréal has the rights to enter into a 50-year exclusive license for the creation, development and distribution of fragrances and beauty products for Gucci, beginning once the current license with Coty expires. That is expected in 2028. Kering and L’Oréal also said jointly at the time that Kering’s obligations would be respected regarding the existing license agreement.
On Wednesday, following the publication of Coty’s first-quarter fiscal 2025-26 results, Sue Nabi, company chief executive officer, was asked by a financial analyst during an analysts’ call about the lawsuit filed “against Kering for breach of contract,” according to a transcript.
Nabi is quoted as saying: “I will not comment on ongoing litigations, and I can tell you that we will defend our rights until the last day, until the last hour of the contract.”
For its part, Kering, when reached Friday about the case, stated: “With respect to the English court proceedings initiated by Coty in relation to the Gucci license, the Kering group categorically rejects the unfounded allegations advanced by the Coty group and will vigorously defend its rights.”
Gucci Flora Gorgeous Gardenia Intense
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Analysts have over the past few weeks been wondering whether there could be an early Gucci license termination.
Nabi, during the recent analysts’ call, was asked the question and said: “There is no change to Coty’s existing license, and our ability to operate the Gucci beauty license or contractual rights remain in place and continue as agreed. Coty will continue to manage and operate Gucci beauty under the same structure already in motion. Overall, we continue to solve this amicably with Kering.”
Of a potential deal for early contract ending, Nabi said: “We are always open to evaluate any proposal if — and only if — this creates real value for the company.”
According to Evercore IRI, the Gucci business accounts for about 8 percent of Coty’s overall sales and about 11 percent of its profits. Coty has held the Gucci license since 2016.
On Oct. 21, during a call with analysts and journalists to discuss third-quarter and nine-month sales, Nicolas Hieronimus, L’Oréal CEO, was asked whether the Gucci fragrance and beauty license might go to L’Oréal earlier than 2028.
“The Gucci license belongs to Kering,” Hieronimus said, adding L’Oréal is not privy to any discussions between the companies and that it would be inappropriate for him to ask about the subject.
The following day, during a call to discuss Kering results, group chief operating officer Jean-Marc Duplaix clarified that the plan is to wait for the Gucci license to expire.
