The key facts
- L'Oréal's third-quarter sales amounted to €11.6 billion ($13.0 billion), up 11.9% year on year
- Growth across all divisions, including the luxury segment, and in all regions, including North Asia
- CEO Nicolas Hieronimus described the results as 'exceptional' and reaffirmed confidence in sales and profit growth for the full year
Double-Digit Growth Despite Stagnation in the Luxury Sector
L'Oréal said on Thursday that its sales in the third quarter grew at a double-digit rate, which, according to AFP, suggests that the French cosmetics giant appears to have avoided the stagnation affecting much of the luxury industry. The company, which owns the Garnier, Lancôme and Maybelline brands, reported sales of €11.6 billion ($13.0 billion) for the three months to the end of September, significantly beating analysts' expectations.
Growth Across All Divisions and Regions
The figure rose 11.9% compared with the same period last year, with growth recorded across all divisions, including the luxury division. Sales increased in all regions, including the North Asia region. The company noted that China was the key driver, with sales there growing almost three times faster than the overall market, while the luxury segment also showed growth. It is noted that China had remained the main driver of luxury market growth until recent years.
Management's Assessment
Chief Executive Officer Nicolas Hieronimus described the third-quarter results as 'exceptional'. 'The global beauty market has once again proven its resilience in challenging conditions — and we continued to significantly outperform it,' AFP quoted him as saying. Hieronimus reaffirmed his confidence that L'Oréal will again be able to grow sales and profit this year, but did not provide specific figures. According to AFP, the company largely avoided the problems faced by luxury groups thanks to its mass-market and professional segment products.
