Cosmetics group L’Oréal posted robust sales growth over the third quarter, lifted by brisk demand in Europe and the United States, which helped offset disruptions in China due to COVID-19 restrictions.
Nicolas Hieronimus, chief executive officer of L’Oréal, said all markets progressed in the period, although lockdowns weighed heavily on the company’s largest division, L’Oréal Luxe, in the key Chinese market.
L’Oréal, the group behind Maybelline mascara and Lancome skincare, posted sales of 9.58 billion euros, up 9.1 percent, like-for-like, slightly outpacing analyst expectations for 8.3 percent organic sales growth.
Curbs on travel in China, including its popular duty-free tourist destination Hainan, dragged down the performance of the company, which posted growth overall of just 0.3 percent, but business sped up in September.
In the United States, sales grew 9.3 percent despite a slow July, with a strong return of demand during the back-to-school period.
Sales grew 10.5 percent in Europe, with L’Oréal flagging market share gains in key markets such as Germany, Spain and Britain.
Consumer goods and luxury companies have posted strong trading updates as shoppers shrug off higher prices and continue to spend.
Learn more:
Selling Lipstick and Stockpiling Cash: How Beauty Brands Are Preparing for a Recession
The category is often thought to be recession proof, but brands are preparing for some turbulence.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Fashion News Click Here
