America caused disappointing numbers for L’Oréal | RetailDetail

America caused disappointing numbers for L’Oréal

America caused disappointing numbers for L’Oréal

French cosmetics group L’Oréal has had sales of 5.8 billion euro in the second quarter of 2013. That is 4.2% more than in the same period of 2012, but the result is far lower than the growth of 5.1% the company had in the first quarter. The rise in demand for cosmetics worldwide is clearly slowing down.

Demand in North America weakens

Especially in North America L’Oréal – the company of brands such as the shampoos of Garnier, the skin creams of Lancôme and the perfumes of Victor & Rolf –sales are losing momentum. At a comparable basis, sales growth was 4.5% in the second trimester.

 

In the first quarter that had been 6.3%. Of worldwide sales of 5.8 billion euro, 1.37 billion euro were made in North America.

 

The weakening in North America is a general problem, not only for L’Oréal. Last year the market in the US rose by 4.5%. In the first half of 2013 the rise was barely above 3%. This was something CEO Jean-Paul Agon had not expected given the current good performances of the American economy.

 

Growth countries most important for L’Oréal

In other regions things fared better for the company. On the new markets in Latin America, Asia and Africa, comparable sales of L’Oréal grew by 10.3% to 2.1 billion euro in the second quarter. This currently makes them the most important markets of the brand.

 

In Western Europe, the traditional home base for L’Oréal that was hit by an economic crisis, the rise in sales was limited to 1.7%. Total sales for the second quarter in that region came to 1.9 billion euro.

 

For the entire year L’Oréal is aiming at a global growth of 3.5% to 4%. Financial results will be announced by the end of August.

Questions or comments? Please feel free to contact the editors


Australian cult brand Aesop opens in Belgium

04/06/2018

Aesop, an Australian beauty brand, is to open a first store in the Belgian fashion capital Antwerp. It would be the first own store for the chain in the Benelux. 

Henkel stays steady in difficult market conditions

09/05/2018

Despite negative exchange rates and logistical issues in the United States, Henkel still sees positive signs in the first quarter. Its glue division outperformed the laundry and beauty divisions.

P&G wants 100 % recyclable packaging by 2030

17/04/2018

Procter & Gamble has announced new sustainability targets for 2030, as it has already – for the largest part – reached its 2020 targets. One of its goals is to make sure that all packaging is recyclable or reusable.

Zalando launches beauty product sales

23/03/2018

Zalando launched its beauty product range in Germany today, which it announced in October. Markets outside of Germany will follow later.

CK Hutchison owner steps down

19/03/2018

Li Ka-shing, CK Hutchinson’s owner and CEO, will step aside mid-May. The 89-year old will then pass on the baton to his eldest son, Victor Li, who will then take control of chains like Kruidvat and ICI Paris XL.

Europe wants global ban on animal testing for cosmetics

27/02/2018

Several Members of the European Parliament say the current European ban on animal testing for cosmetic purposes needs to be extended to a global one.