L’Oreal Shares Fall after Asian Sales Disappoint

This photo taken on February 16, 2018 shows a board with the L'Oreal logo outside of the L'Oreal plant, in Lassigny. (AFP)
This photo taken on February 16, 2018 shows a board with the L'Oreal logo outside of the L'Oreal plant, in Lassigny. (AFP)
TT

L’Oreal Shares Fall after Asian Sales Disappoint

This photo taken on February 16, 2018 shows a board with the L'Oreal logo outside of the L'Oreal plant, in Lassigny. (AFP)
This photo taken on February 16, 2018 shows a board with the L'Oreal logo outside of the L'Oreal plant, in Lassigny. (AFP)

Shares in L'Oreal fell 7.5% in early trading on Friday after the French cosmetics company reported fourth quarter sales growth that fell short of market expectations, reflecting a disappointing performance in Asia.

L'Oreal reported a 6.9% rise in fourth quarter sales after the market closed on Thursday, slower growth than in the previous quarter. Sales totaled 10.6 billion euros ($11.4 billion), shy of expectations for 10.9 billion euros, according to consensus estimates cited by Barclays

L'Oreal's travel retail business suffered from tighter control by the Chinese government of resellers known as "daigou". The resellers purchase inventory at lower prices in other markets and resell them at a discount in the mainland.

Analysts at Barclays said that they had expected Asia travel retail issues to take longer to be resolved than the market expected. They added that L'Oreal's top-line sales performance represented a "rare headline miss".

Analysts at Deutsche Bank said L'Oreal's performance in North Asia was "well below expectations."

"We are of the view that headwinds in China are structural not just cyclical," they said in a note.

L'Oreal nevertheless outperformed its main rival Estee Lauder. Sales at Estee Lauder declined 8% overall in the same quarter.

The company also said on Friday it had signed a licensing agreement with high end fashion label Miu Miu for beauty products.

L'Oreal expects to launch the first fragrances in 2025 under the agreement, which encompasses the creation, development, and distribution of beauty products.



Nike to Launch New Women's Fitness Brand with Kim Kardashian's Skims

The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
TT

Nike to Launch New Women's Fitness Brand with Kim Kardashian's Skims

The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)

Nike will launch a new women's activewear brand in the US this spring in partnership with Kim Kardashian-owned shapewear clothing company Skims, as CEO Elliott Hill works to bolster its portfolio to better compete with upstart brands.

Product innovation and a return to focus on its core sports roots have been at the forefront of Hill's mission to revive sales at Nike, which have been lagging strong growth at Hoka and New Balance, Reuters reported.

The company's bid to appeal to women, who made up about 40% of its customers in 2023, was evident in Nike's first Super Bowl ad in nearly three decades, featuring star women athletes including Jordan Chiles, Caitlin Clark, Sha'Carri Richardson, A'ja Wilson and Sabrina Ionescu.

Skims was launched in 2019 and is valued at around $4 billion. It has seen a strong demand for its shapewear.

Nike said on Tuesday the new brand, called NikeSKIMS, would include training apparel, footwear and accessories for women.

The first collection will be launched at some retail locations in the US as well as at NikeSKIMS' website. The brand would launch globally in 2026, expanding into more retail locations, as well as in the wholesale segment.

The brand would sit alongside other names under Nike's kitty, including Converse, Jordan, ACG and Nike SB.

Nike's shares were up 3% on Tuesday.