The world's largest cosmetics group, L'Oreal Co., announced robust first-quarter results, with demand recovering across multiple product lines, demonstrating strong resilience against a backdrop of overall slowing consumer spending.
Data released by the company on Wednesday showed first-quarter sales reached 12.152 billion euros, representing a 7.6% year-on-year increase on a comparable basis. All four of its business divisions recorded positive growth, with the Professional Products (15.5%) and Dermatological Beauty (10.8%) divisions both achieving double-digit increases, significantly outperforming the global cosmetics market as a whole.
Geographically, the two largest revenue markets, Europe (10.3%) and North America (11.4%), also saw double-digit growth. Same-store sales in the North Asia region declined by 4%. Consumer demand in the Middle East was constrained by ongoing conflicts, with the UAE market being particularly affected.
CEO Nicolas Hieronimus stated that the company not only outperformed the cosmetics market but also accelerated its market share expansion globally. He expressed strong confidence in achieving both sales and profit growth for the coming year.
On March 31st, L'Oreal Co. completed the acquisition of the cosmetics business from Kering Group for 4 billion euros. The acquired assets include the perfume brand House of Creed. Furthermore, L'Oreal secured exclusive 50-year licensing rights for the perfume and cosmetic products of the Bottega Veneta and Balenciaga brands, significantly enriching its portfolio of high-end beauty brands.
Following the earnings release, L'Oreal's American Depositary Receipts (ADR) rose by over 6% during the trading session. While the company's share price has declined by approximately 5.9% year-to-date on the Paris market, this performance is far superior to that of its peers—US cosmetics giant Estée Lauder has seen a 28% decline over the same period.
**Recovery in European and North American Sales**
From a regional perspective, European same-store sales grew by 10.3%, with the Spain-Portugal and Germany-Austria-Switzerland market clusters performing particularly well. The e-commerce channel continued to accelerate.
North American same-store sales increased by 11.4%, making it the second-largest mature market by revenue. The overall cosmetics market in the region remained active, and L'Oreal Co. continued to gain market share through successful product innovations and strong retailer partnerships.
Same-store sales in the North Asia region fell by 4%. Meanwhile, consumer demand in the Middle East was suppressed by persistent conflicts, with the UAE market being notably impacted.
L'Oreal Co. noted that excluding the impact of an IT system transformation, the adjusted comparable revenue growth for the first quarter was 6.7%.
**Business Divisions: Professional Haircare and Dermatological Beauty Lead, High-End Cosmetics Recovery Confirmed**
All four business divisions reported growth in same-store sales, with the Professional Products Division (PPD) and the Dermatological Beauty Division (LDB) delivering particularly strong performances.
Same-store sales for the Professional Products Division grew by 15.5%. New products such as Kérastase Gloss Absolu Crème and Redken Acidic Growth Full performed excellently. The integration of the Color Wow brand is also progressing smoothly and is set for a full global rollout by 2026.
The Dermatological Beauty Division saw same-store sales increase by 10.8%. La Roche-Posay maintained strong momentum driven by its Cicaplast range and Hyalu B5 Suractivated. CeraVe confirmed a business turnaround across all global regions, and SkinCeuticals' A.G.E. Interrupter range continued to contribute to growth.
The L'Oréal Luxe division (High-End Cosmetics) reported a 5.2% increase in same-store sales, confirming a recovery trend. Perfumes remained the largest growth driver, with classic lines like Prada Paradigme, YSL Libre, and Valentino Born in Roma continuing their strong performance. The newly launched Emporio Armani Power of You also had a very promising start.
The Consumer Products Division (CPD) achieved 5.8% growth in same-store sales, significantly outperforming the global mass-market cosmetics segment in sell-out terms.
Leveraging its diverse product portfolio, which spans professional skincare, mass-market color cosmetics, and high-end fragrances, L'Oreal Co. maintained relatively stable growth momentum while peers faced significant pressure.
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