THE WHAT? L’Oréal has reported Q3 12.0 percent like-for-like sales growth, with the Luxe division falling short to the mass Consumer Products division as the cost of living crisis continues to sway consumer purchasing decisions.
THE DETAILS Consumer products rose 10 percent like-for-like, while Luxe gained just 4.6 percent.
According to Bloomberg, the French beauty giant’s shares fell 6.3 percent in Paris trading due to concerns over the company’s previously fast-growing luxury arm.
Geographically, SAPMENA grew 30 percent, while Europe and North America increased 10.5 percent and 9.5 percent respectively.
THE WHY? Nicolas Hieronimus, CEO of L’Oréal, said: “In a context of unprecedented volatility, marked by the public health restrictions in China and inflation in the Western world, L’Oréal achieved a very solid quarter, continuing at a steady pace of growth compared to 2019.
“Benefiting from its rebalancing strategy, particularly in terms of geographic footprint, at the end of September the Group reported strong growth of +20.5%, with a significant positive impact of foreign exchange, and +12.0% like-for-like.”