Luxury products and emerging markets fuel L’Oréal Q3 growth

Luxury products and emerging markets fuel L’Oréal Q3 growth

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.”