By Francois Schott and Joshua Kirby

L'Oreal SA's license to sell Yves Saint Laurent-branded cosmetics and perfumes isn't at risk from the creation of a new beauty division at YSL parent group Kering, L'Oreal Chief Executive Nicolas Hieronimus said Friday.

The French cosmetics major has been licensed to sell YSL beauty products since 2008, when it spend 1.5 billion euros ($1.61 billion) to buy the division. The deal included an exclusive license to sell YSL perfumes, as well as those of Boucheron, also owned by French luxury-goods giant Kering. The Boucheron license was later transferred to Inter Parfums SA in 2011. L'Oreal also holds beauty licenses for brands including Prada Spa, Ralph Lauren Corp. and Giorgio Armani.

The deal with YSL is "very, very long term," with no risk of L'Oreal losing it, Mr. Hieronimus said during a presentation held to discuss the company's 2022 results.

Kering said earlier this month it was creating a new beauty division to be headed by former Estee Lauder executive Raffaella Cornaggia. The division will market cosmetics and perfumes products from Kering brands including Balenciaga and Bottega Veneta, but for now excludes YSL, as well as Kering's biggest house Gucci, whose beauty products are licensed to Coty Inc.

Kering and YSL didn't immediately respond to a request for comment regarding the brand's beauty license.

This story was translated in whole or in part from a French-language version initially published by L'Agefi-Dow Jones.

Write to Francois Schott at fschott@agefi.fr and to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

February 10, 2023 07:26 ET (12:26 GMT)

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