Markets remained cautious :: Now Smell This

The Paris-based companies on Monday announced the sale of niche fragrance house Creed to L’Oréal, as well as a 50-year exclusive license to develop beauty lines for Bottega Veneta and Balenciaga under the beauty giant’s umbrella. The agreement also grants L’Oréal an option for Gucci Beauty—currently licensed to Coty until at least 2028, and a 50/50 joint venture in the wellness and longevity categories. […]

Still, markets remained cautious: Kering’s shares rose 4% on Monday but ended down 3.9% on Friday following a 10% drop in quarterly sales. L’Oréal slipped about 1% on the day of the announcement and ended the week down 0.2% after logging sales growth that came below analysts’ expectations—a sign that investors expect results from the transaction only over the medium term.

— Read more in How Much More Can L’Oréal Grow After €4 Billion Deal with Kering? at BeautyMatter.