In the third quarter, L’Oreal reported a robust 11.1% surge in sales, primarily driven by solid growth in Europe and the United States. However, this growth slightly missed expectations for a strong rebound in the Chinese market.
The renowned Paris-based beauty conglomerate, home to an extensive brand portfolio from Maybelline to Lancome, disclosed Q3 sales of 10 billion euros, marking an 11.1% increase on a like-for-like basis at comparable scope and constant exchange rates. This figure fell just short of the anticipated 11.5% rise, according to consensus estimates from Barclays.
It’s worth noting that L’Oreal’s sales in North Asia, predominantly from mainland China, experienced an unexpected 4.8% decline. This underperformance was attributed to changes in China’s travel retail policy, notably affecting the daigou channel. Nevertheless, in mainland China, where the beauty market is described as experiencing a «muted recovery,» the company achieved a commendable 7.7% sales growth while continuing to gain market share.
China has been closely scrutinized by investors due to factors such as high youth unemployment and a property crisis, which have complicated the country’s post-pandemic economic resurgence. L’Oreal, the leading player in China’s $78.9 billion beauty and personal care market in the past year, has consistently expanded its market presence in the region over recent months. Notably, L’Oreal’s luxury division holds the dominant position in the high-end cosmetics segment.
L’Oreal’s extensive brand lineup encompasses skincare, makeup, and fragrance offerings under various labels, including Maybelline and local favorite Yuesai, as well as premium brands like Lancome, Yves Saint Laurent, Valentino, and Prada.
