L’Oréal managed to raise its sales by almost a tenth in the first quarter of 2024. The luxury and travel segments slowed down, but this was more than offset by the mass brands.
No Chinese comeback
The French beauty brand reports a 9.4 % rise in sales (on a comparable basis) to 11.24 billion euros in the quarter ending on 31 March. The group above brands such as Maybelline and Elsève exceeded analysts’ expectations: they had feared for a major downturn in the United States and China – the world’s biggest beauty markets.
Indeed, its luxury brands did not do too well (growing only 1.8 %), despite the fact that L’Oréal acquired Aesop only last year. Especially in China, sales are not recovering as expected – although L’Oréal’s 6.2 % growth, is still far better than the market average of 1 %. Moreover, China is cracking down on the phenomenon of “daigou”; Chinese who buy luxury items abroad cheaper, only to resell them in China at a profit.
Fears of a downturn in the United States proved unjustified (yet), as sales rose by more than 12 % in both North America and Europe. The group’s mass-market brands, such as L’Oréal Paris and Elsève, account for more than a third of sales and grew 11.1 % like-for-like. The fast-growing dermatological products division, including La Roche-Posay and CeraVe, even grew by 21.9 %.
