L’Oreal Shares Dip on Sales

L’Oreal Shares Dip on Sales

THE WHAT?  L’Oreal’s shares declined by 5.5% following a report of lower-than-expected sales, with a 6.9% increase in fourth-quarter sales totaling 10.6 billion euros, missing the expected 10.9 billion euros.

THE DETAILS The shortfall was particularly noted in North Asia, where sales dropped by 6.2%, affected by the Chinese government’s tighter regulations on “daigou” resellers. CEO Nicolas Hieronimus acknowledged the disappointing performance in the Chinese market in 2023 but reported a positive trend in January 2024, with cautious expectations for the first half of the year and higher ambitions for the second half.

THE WHY? Despite these challenges, L’Oreal announced a share buyback program of 500 million to 750 million euros.

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