PARIS — L’Oréal’s first-quarter 2025 gross sales development beat expectations amid a unstable market buffeted by financial and geopolitical pressures.
A blended impact was famous within the three months ended March 30, together with the U.S. being tougher than anticipated, whereas China was barely higher than foreseen.
“Europe was, as soon as once more, our single largest development contributor, and rising markets remained dynamic,” stated Nicolas Hieronimus, chief government officer of L’Oréal, in a press release printed after the market shut Thursday.
The maker of Lancôme, Kiehl’s and Garnier merchandise stated within the assertion that its gross sales within the interval reached 11.73 billion euros, up 4.4 % in reported phrases and three.5 % on a like-for-like foundation.
The world’s largest magnificence firm stated its gross sales development benefited from phasing linked to the 2024 and 2025 IT transformation, which resulted in a constructive web affect of 100 million euros.
Monetary analyst consensus had anticipated L’Oréal’s first-quarter gross sales to achieve 1.3 % in natural phrases.
L’Oréal Paris EverPure Glossing Shampoo and Conditioner.
Courtesy L’Oréal Paris
“Within the present context, our priorities are to drive development and handle our P&L to offset the affect of tariff hikes — with the advantage of an already very wholesome gross margin,” continued Hieronimus. “We’ll, in fact, proceed to place the proper gas behind our 37 worldwide manufacturers to additional reinforce our world management.”
L’Oréal seems to be in place to climate the mounting storm whipped up by U.S. import tariffs.
“L’Oréal’s U.S. enterprise is comparatively resilient to potential U.S. tariffs, with 5 factories within the U.S. and with a majority bought within the U.S. being made regionally,” wrote Jeremy Fialko, head of shopper staples analysis, Europe, in a be aware. He added the L’Oréal Luxe and Dermatological Magnificence divisions’ merchandise are imported from the European Union, however well-positioned to cushion the tariffs’ affect as a result of their excessive margins.
“In addition they have some merchandise manufactured in Mexico and Canada,” continued Fialko. “Subsequently, by far the largest threat comes from any shopper hesitancy linked to the tariffs or a squeeze on earnings ensuing from worth rises elsewhere. That stated, L’Oréal might profit ought to friends have to cost extra aggressively to offset the tariff hit.”
Hieronimus stated he’s assured L’Oréal will proceed to outperform the worldwide magnificence market, which the group expects will develop regardless of financial and geopolitical tensions, and to realize once more development in gross sales and earnings.
“We anticipate development to speed up progressively,” he stated.
