Kering will sell House of Creed to L’Oreal for EUR 4 billion, strengthening balance sheet and focusing on luxury fashion brands. Most luxury brands run beauty business through licenses, benefiting from larger cosmetics groups. Morningstar maintains fair value estimate for Kering, as beauty was not a significant part of investment thesis.

Read more at Morningstar: Sale of Beauty Business to L’Oreal Strengthens Balance Sheet; Shares Still Attractive