L’Oréal sales outperform global beauty market with hair and fragrance growth
L’Oréal has released its financial report for Q1, reporting sales of €11.73 billion (US$13.49 billion), an overall 4.4% sales growth, and 3.5% like-for-like growth. The company says fragrance and hair care were its fastest-growing categories, with Europe delivering robust growth. However, progress was reported to be the highest in emerging markets — particularly in Brazil, India, and Thailand.
The company also says it moderately outperformed the global beauty market, despite current global economic uncertainty.
“In what has been a particularly challenging and volatile operating environment, L’Oréal has started the year with growth in line with our projections. There were some good and less good surprises: the US was more challenging than anticipated, while China was slightly better than expected,” says Nicolas Hieronimus, CEO of L’Oréal.
“Europe was, once again, our single largest growth contributor, and emerging markets remained dynamic.”
Across divisions
L’Oréal’s Luxe division showed the highest growth, with 5.8% like-for-like and 7.3% reported. The company says all categories in the Luxe division contributed to growth, “reflecting the strength of L’Oréal Luxe Portfolio of complementary brands.”
The company’s launch of Lancome Absolute Longevity cream was one of the key drivers in the Luxe division, Fragrances and Makeup grew by double digits.
The company’s launch of Lancome Absolute Longevity cream was one of the key drivers in the Luxe division. Another division reported was Dermatological Beauty, which grew 2.7% like-for-like and 3.5% reported. La Roche-Posay was the most significant contributor to growth.
The Consumer Products division grew 2.3% like-for-like and 2.7% reported. The division continued to win in hair care, driven by successful product launches like those from L’Oréal Paris and Garnier.
L’Oréal Paris also launched its Big Deal mascara and a plump gloss to stimulate the weak US makeup market. Other launches included NYX’s Face Glue primer and setting spray, Maybelline’s Teddy Tint liquid lip, and Super Fluff brow mousse.
The division for Professional Products grew by 1.6% like-for-like and 2.7% reported. Fueled by its omnichannel strategy and “focus on reanimating the subdued salon market,” the division saw continued growth in its premium hair care products, where momentum was strong across major brands such as L’Oréal Professional and Kérastase.
The cosmetics company also launched the L’Oréal Airlight Pro hair dryer, which it reported to be successful in France and the US.
“Of the four global brands, L’Oréal Paris, Garnier, and NYX Professional Makeup were particularly dynamic,” says L’Oréal.
Differences by regions
Latin America showed 7.9% like-for-like and 0.4% reported, with Brazil and Mexico making the most substantial contributions.
The growth across regions showed SAPMENA (South Asia Pacific, Middle East, and North Africa) with 10.4% like-for-like growth and 12.2% reported, with its growth being broad-based across all categories and divisions.
Latin America showed 7.9% like-for-like and 0.4% reported, with Brazil and Mexico making the most substantial contributions.
In North Asia, ike-for-like sales grew by 6.9% and 8.4% was reported. Sales rose in Japan and Korea. Korean makeup brand 3CE by Stylenanda pursued its expansion in Southeast Asia. At the end of March, L’Oréal completed the acquisition of Korean dermo mass skin care brand Dr.G.
In Europe, sales grew 4.3% like-for-like and 4.9% reported, delivering a “solid growth despite a high comparison base, outperforming a market that continued to slow as anticipated,” notes L’Oréal. The company says it strengthened leadership in makeup, fragrance, and hair care.
In North America, like-for-like sales decreased by 3.8%, and reported sales decreased by 1.4%. Certain divisions, such as Professional Products and Luxe, “outperformed” the market, while Dermatological Beauty faced a slowing market. Consumer products remained dynamic.
“In the current context, our priorities are to drive growth and manage our profit and loss to offset the impact of tariff hikes, benefiting from an already very healthy gross margin. We will continue to put the right fuel behind our 37 international brands to reinforce our global leadership further,” stresses Hieronimus.
