Gucci owner, Kering, is nearing a sale of its beauty division to L’Oréal, according to people familiar with the situation.
According to the Wall Street Journal, the sale is thought to be around US$4 billion (A$6.16 billion) and is a move set to revive the luxury giant's fortunes.
Kering launched its beauty division in 2023 with the aim of capitalising on the growth of cosmetics and perfumes by making products in-house.
This would mark a major move by Kering’s new CEO, Luca De Meo, who took office in September to address the company’s high-debt issue.
The Gucci owner’s net debt reached 9.5 million euros at the end of June.
The debt came as the company struggled to reverse slowing sales at its largest brand, Gucci, as it was hit hard by a lack of consumer demand, particularly in China, which had led growth in the sector for more than a decade.
Since De Meo’s appointment in mid-June, shares in the company have surged by around 60%.
