A girl view skincare merchandise at L’Oreal sales space in the course of the seventh China Worldwide Import Expo (CIIE) on the Nationwide Exhibition and Conference Middle (Shanghai) on November 5, 2024 in Shanghai, China.
China Information Service | China Information Service | Getty Pictures
French cosmetics large L’Oreal on Thursday reported lower-than-expected gross sales within the fourth quarter amid continued weak point within the Chinese language magnificence market and a slowdown in demand within the U.S.
The world’s largest magnificence model posted gross sales of 11.08 billion euros ($11.49 billion) within the three months to December, up 2.5% on a like-for-like foundation and simply shy of the 11.1 billion euros estimated by analysts in an LSEG ballot.
Full-year gross sales rose 5.1% to 43.48 billion euros versus the 43.33 billion euros forecast.
Fourth-quarter gross sales elevated on a like-for-like foundation throughout all areas besides North Asia, which recorded a 3.6% decline, extending a continued slowdown over latest quarters. Gross sales in North America, in the meantime, rose simply 1.4%, down from 5.2% progress within the prior quarter.
In an announcement accompanying the outcomes Thursday, CEO Nicolas Hieronimus mentioned the “Chinese language ecosystem remained difficult,” however pointed to a broader normalization of the worldwide magnificence market following a interval of macroeconomic pressures.
“We stay optimistic concerning the outlook for the worldwide magnificence market, and assured in our capacity to maintain outperforming it and to attain one other 12 months of progress in gross sales and revenue,” he mentioned.
The corporate, whose manufacturers embrace Lancôme, Maybelline and Kiehl’s, has been battling weaker shopper demand over latest quarters, significantly in the important thing Chinese language market — a pattern that has additionally beset high-end luxurious companies.
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