L'Oreal 2Q Sales Grow 5.3%, Slower than Forecast

The logo of French cosmetics group L'Oreal is seen on a company building in Paris, France, February 7, 2024. (Reuters)
The logo of French cosmetics group L'Oreal is seen on a company building in Paris, France, February 7, 2024. (Reuters)
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L'Oreal 2Q Sales Grow 5.3%, Slower than Forecast

The logo of French cosmetics group L'Oreal is seen on a company building in Paris, France, February 7, 2024. (Reuters)
The logo of French cosmetics group L'Oreal is seen on a company building in Paris, France, February 7, 2024. (Reuters)

French cosmetics giant L'Oreal reported a 5.3% rise in second-quarter sales, below expectations and likely further rattling investors already worried about the lack of rebound in the important Chinese market.

The Paris-based company, which owns the Maybelline and Lancome brands, said on Tuesday that sales in the quarter reached 10.88 billion euros ($11.75 billion), up 5.3% on a like-for-like basis from a year earlier, but undershooting the 5.9% growth seen in a consensus compiled by Visible Alpha.

The company reported negative growth in the North Asia region, hit by weak consumer confidence in China and compared with the strong surge in demand at the same time a year ago.

L'Oreal CEO Nicolas Hieronimus had said last month that the global beauty market was growing more slowly than earlier predicted, at about 4.5%-5%, largely due to a lack of rebound in the Chinese market.

Shoppers in China, which has been one of the world's fastest growing beauty markets, are cutting back on spending over worries about job insecurity and a prolonged real estate slump.

The world's No. 2 economy grew less than expected in the second quarter, prompting consumers to buy fewer creams and lipsticks, both online and in stores.

L'Oreal, whose products span the mass market to the high-end luxury segment, had been expected to outpace its peers, but still see the impact of broadly slower growth.

Its sales in North Asia, which come mostly from mainland China, were down 2.4% like-for-like, compared with a decline of 1.1% in the first quarter.

"In mainland China, the beauty market was negative in the second quarter on a tough comparison base, exacerbated by lasting low consumer confidence," said the company in a statement.

Luxury bellwether LVMH last week said its perfumes and cosmetics sales grew 4% in the second quarter, slowing from 7% in the first three months of the year.

Shares in L'Oreal, Europe's 6th most valuable listed company, with a market capitalization of about 211 billion euros, have lost 12% so far this year, compared to a 31% fall at US peer Estee Lauder.



Fashion Commission Celebrates Winners of 'Traditional Handcrafts Revival in Saudi Fashion' Competition

The competition reinforces the Kingdom's cultural identity on the global fashion stage and highlights the potential of Saudi craftsmanship to inspire innovation in modern design. (SPA)
The competition reinforces the Kingdom's cultural identity on the global fashion stage and highlights the potential of Saudi craftsmanship to inspire innovation in modern design. (SPA)
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Fashion Commission Celebrates Winners of 'Traditional Handcrafts Revival in Saudi Fashion' Competition

The competition reinforces the Kingdom's cultural identity on the global fashion stage and highlights the potential of Saudi craftsmanship to inspire innovation in modern design. (SPA)
The competition reinforces the Kingdom's cultural identity on the global fashion stage and highlights the potential of Saudi craftsmanship to inspire innovation in modern design. (SPA)

The Saudi Fashion Commission concluded its "Traditional Handcrafts Revival in Saudi Fashion" initiative with a special awards ceremony in Riyadh on Sunday.

The initiative aligns with the Ministry of Culture’s Year of Handicrafts 2025 vision to promote traditional handcrafts by highlighting Saudi traditional attire, celebrating the Kingdom's rich cultural heritage, and supporting local creative talents.

The competition aimed to integrate traditional handcraft techniques into contemporary fashion, creating a bridge between the past and present. Participants engaged in specialized workshops led by fashion experts, exploring ways to merge traditional craftsmanship with modern design principles.

The program provided a holistic experience, teaching not only the techniques of handcrafts but also deepening participants' understanding of their historical and cultural significance.

A total of 235 applicants competed in the initiative, with 25 finalists selected for the final stage. The winning designs were showcased during the Saudi Cup 2025, coinciding with Founding Day celebrations. A distinguished panel of judges, comprising leading figures in fashion, arts, and heritage, selected the top ten designs.

The competition reinforces the Kingdom's cultural identity on the global fashion stage and highlights the potential of Saudi craftsmanship to inspire innovation in modern design.