L’Oréal has beat industry expectations with its Q3 results, with sales growing 5.1 percent to €6.09bn in the three months ending 30 September 2017, as opposed to the predicted 4.2 percent as forecasted by experts in a Reuters poll.
Luxury product sales achieved double digit growth, up 11.2 percent on a like-for-like basis – boosted by brands such as YSL, Giorgio Armani, Lancôme, Kiehls and Urban Decay – with newcomer IT Cosmetics also posting rapid growth.
The emerging markets were up 10.2 percent on a year-on-year, like-for-like basis. with Asia Pacific leading the pack, up 14.7 percent, with China also putting in a strong performance thanks to online and luxury sales. North America reported a 2.5 percent year-on-year, like-for-like growth.
The consumer products division was affected by struggles in the US and French markets, reporting a 2.3 percent growth, while e-commerce sales were on the up, rising 31.6 percent in Q3. Meanwhile the active cosmetics sector also reported a double digit rise, up 11.3 percent, with La Roche-Posay posting ‘solid growth’ in all zones.
Mr Jean-Paul Agon, Chairman and Chief Executive Officer of L’Oréal, said, “The growth in sales continues to be boosted by our digital lead, particularly with the sustained expansion of e-commerce sales at +31.6%. These good performances strengthen our confidence in our ability to once again outperform the cosmetics market in 2017, and to achieve growth in both our sales and profits.”