Tensions rise as Coty subsidiary HFC Prestige International Operations Switzerland Sàrl files a lawsuit in a UK commercial court against Gucci and its parent company, Kering, over the Gucci fragrance and beauty license scheduled to expire in 2028.The suit, filed on October 20, names Gucci America Inc., Guccio Gucci S.p.A., and Kering SA as defendants. According to public records, the case concerns general commercial contracts and arrangements, though specific allegations have not yet been made public.The legal action comes on the heels of Kering’s €4 billion ($4.66 billion) partnership with L’Oréal. The strategic alliance includes exclusive rights to create, develop, and distribute Gucci fragrances and beauty products for 50 years, upon Coty’s current license's expiration. The transition is set to begin when Coty’s existing license expires in 2028.Kering and L’Oréal jointly emphasized that all existing contractual obligations with Coty would be honored at the time of the announcement. The loss of Gucci’s beauty license could wipe out roughly $500 million in annual sales and put in question Coty's ability to maintain its footing as an independent public company. Coty has held the Gucci beauty and fragrance license since 2016. According to Evercore ISI, the business represents about 8 percent of Coty’s total sales and 11 percent of its profits.Questioned by an analyst during the first-quarter fiscal 2025–26 earnings call, Coty CEO Sue Nabi confirmed, “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.