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.



Chanel Riffs the Black Bow and Chunky Knits at Grand Palais in Paris

A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier
A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier
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Chanel Riffs the Black Bow and Chunky Knits at Grand Palais in Paris

A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier
A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier

Trim, tweed tailored suits and flowing dresses adorned by decorative black bows showcased Chanel's fall-winter runway collection in Paris on Tuesday.

Under the soaring glass-and-steel dome of the Grand Palais, models strode through a sparse set, built around an enormous black ribbon sculpture curling up into the air.

Kicking off the show were suit jackets and mini-skirts or shorts in tweed, all in monochrome, some covered by dresses or skirts in sheer fabric with extra ruffles emphasising the hem.

Black bows embellished the looks, whether tied under the neck, worn as hair attachments or fixed to brimmed hats, skirts or thick-heeled boots.

Moving away from the strict palette of black and ivory, the French fashion house also showed chunky knits in raspberry or mint green and a red tweed ensemble in the form of a bustier minidress, trousers and over-the-elbow gloves, Reuters reported.

There were also glossy, black overcoats, oversize pearl accessories and a puffer jacket - distinctly Chanel, with rows of bows.

Chanel fans are awaiting the arrival of Matthieu Blazy, who fills the high profile designer role left vacant since the departure of longtime Karl Lagerfeld collaborator, Virginie Viard, last June.

Blazy, whose first show will be in October, is credited with the recent success of Kering-owned Bottega Veneta.

Paris Fashion Week winds up on Tuesday, after featuring shows from some of the world's biggest brands including Dior , Hermes and Louis Vuitton, as well as Stella McCartney and Victoria Beckham.