L’Oréal’s emerging markets offset regional weakness, Interparfums eyes rebound

L’Oréal has posted improved half-year results, driven by strong momentum in emerging markets. Its like-for-like sales rose 10.3% in Latin America and 10.4% in the SAPMENA region. In contrast, Interparfums reported a slight second-quarter sales decline of 2%, citing earlier order timing and the completed phase-out of its Dunhill fragrance license.

L’Oréal reported a 3% like-for-like sales increase in the first half of 2025, reaching €22.5 billion (US$25.7 billion). Net profit rose 1% to €3.9 billion (US$4.3 billion). Operating margin improved by 30 basis points to 21.1% of sales.

“As anticipated, L’Oréal’s like-for-like growth accelerated between the first and second quarter. The ongoing strength in emerging markets, the slight rebound in mainland China, and the gradual recovery in North America more than offset the expected slowdown in Europe,” says Nicolas Hieronimus, CEO at L’Oréal.

Meanwhile, Interparfums posted a 2% decline in Q2 net sales to US$334 million. The Dunhill transition, finalized in August 2024, removed the brand from Interparfums’ portfolio and weighed on year-over-year comparisons, though the company views the impact as temporary.

For Interparfums, European operations climbed 6%, bolstered by Coach and Lacoste launches, while US-based operations dropped 20% amid softness in Guess and DKNY.

Both companies noted foreign exchange pressures, yet remain confident in long-term brand strength and innovation-driven growth.

L’Oréal advanced its acquisition strategy with new stakes in Medik8 and Color Wow, while Interparfums expects its portfolio and upcoming launches to drive stronger second-half performance.

Emerging markets drive growth

L’Oréal’s half-year performance showcases steady resilience. Group sales were up 3% like-for-like despite uneven regional conditions and currency headwinds. Growth accelerated from 2.6% in Q1 to 3.7% in Q2, buoyed by emerging markets and a return to growth in China.

The Professional Products Division led the charge, with 6.5% like-for-like growth, thanks to robust demand in Europe and emerging markets.

L’Oréal posted double-digit sales growth in Latin America, with standout performances in Brazil and Mexico.Kérastase, Redken, and L’Oréal Professionnel were key drivers, aided by the recent acquisition of Color Wow to strengthen the premium hair care portfolio. Operating margin for the division reached 22.4%.

Consumer Products followed with 2.8% like-for-like growth, driven by hair care innovations like Garnier Fructis’ Keratin Sleek and L’Oréal Paris Growth Booster. Gains were especially strong in India and Latin America, where Mexico and Brazil are cited as particularly dynamic markets.

However, makeup remained sluggish, with Nyx and Maybelline offsetting broader softness. The division’s operating margin rose 50 basis points to 22.5%.

L’Oréal Luxe recorded 2% like-for-like growth despite contraction in North Asia. Europe and emerging markets fueled sales, led by fragrances such as Myslf by Yves Saint Laurent and Born in Roma by Valentino.

Double-digit growth in Aesop and L’Oréal’s recent acquisition, Medik8, supported the company’s gains, and division profitability held steady at 22.3%.

Dermatological Beauty advanced 3.1% like-for-like, outpacing the global dermocosmetic market in sell-out terms. The division remains the most profitable, at 28.2%.

“Our numerous initiatives in the second half will benefit from strong brand support, notably our major upcoming launches, including the new Prada men’s fragrance and the first Miu Miu fragrance,” Hieronimus says.

“We expect to grow, even amidst the current economic and geopolitical tensions — and to achieve another year of growth in sales and an increase in our profitability.”

Interparfums’ second-half optimism

Interparfums’ net sales dropped 2% in Q2 2025, driven by the final wind-down of the Dunhill license. 

European operations rose 6%, powered by Coach and Lacoste. Coach for Men Eau de Parfum and Coach Women Gold contributed respective sales increases of 59% and 42%.

CEO Jean Madar calls Lacoste “well-positioned to become our next US$100 million brand,” reflecting ongoing brand momentum.

Jimmy Choo sales dropped 20% in the quarter but remained up 5% year-to-date, bolstered by Jimmy Choo Man Extreme and the I Want Choo line.Interparfums is expanding its reach with Solférino Paris, its first private-label haute parfumerie collection inspired by Paris.

Montblanc sales were flat, though the recent Explorer Extreme launch is expected to lift H2 performance. Roberto Cavalli and MCM also delivered growth, rising 23% and 3% respectively.

Net sales fall in US

In the US, net sales for Interparfums fell 20%, or 14% organically, as Guess and DKNY underperformed amid product launch delays and supply chain disruptions tied to tariffs.

“We remain agile and view this quarter as a period of momentary softness within an otherwise positive trajectory,” says Madar.

The company reiterates its full-year optimism, underpinned by strong retailer relationships, upcoming launches, and resilience in the prestige fragrance category.

Looking ahead, Interparfums plans to capitalize on its brand architecture across its European and US segments, aiming to resume growth momentum in Q3 and Q4.

Earlier this month, Interparfums unveiled its “first-ever” private-label haute parfumerie brand, Solférino Paris, marking a move into the niche fragrance space. The gender-neutral collection includes ten scents inspired by Parisian landmarks and was developed with perfumers from dsm-firmenich, Givaudan, and IFF.