BUZZ-L'Oreal reassures with Q1 growth, shares jump

Reuters04-19

** Shares in L'Oreal rise about 5% after the French cosmetics giant beat expectations on Q1 sales as mass-market makeup outshone luxury

** Q1 sales rise 9.4% to 11.24 bln euros ($11.95 bln), above consensus expectations of 6.1% cited by Jefferies

** Stifel says the biggest positive surprises come from Europe and Consumer Products, while North Asia and Luxe are not worse than feared

** RBC notes Q1 growth materially beats expectations even when adjusted for a positive one-off from IT systems change and insurance

** "We anticipate a strongly positive share price reaction," Stifel says, as investors have been cautious so far due to U.S. data softness, a warning from ULTA , and weak cosmetics retails sales data in China

** Between ULTA's warning and Tuesday's close, L'Oreal shares lost about 3.7% in value, before paring the losses to 1.7% at Thursday's close

** "We think the market trends suggest the worst is over (in Asia)," J.P.Morgan says, which should give some reassurance to Shiseido and Kose

** The stock is heading for a best day in 15 months if gains hold

($1 = 0.9406 euros)

(Reporting by Piotr Lipinski)

((piotr.lipinski@tr.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment