By Andrea Figueras
Shares in L'Oreal surged after sales recovered from a period of slow growth despite difficult market conditions.
The beauty giant on late Wednesday reported sales of 12.15 billion euros ($14.22 billion) for the first quarter . This was 7.6% higher compared with the same period a year prior on a like-for-like basis. The result beat expectations and was better than the 6% increase posted for the fourth quarter of 2025.
The stock was up 8.2% at 373.20 euros in European morning trading. Since the start of the year, shares have jumped 1.8%.
"L'Oreal has returned to form, delivering solid underlying growth," analysts at RBC Capital Markets Wassachon Udomsilpa and James Edwardes Jones write in a note, adding that the strong performance trend is likely to continue.
The group--which houses brands like L'Oreal Paris, Garnier and Maybelline New York--said it expects profit and sales growth for the full year. "We not only outperformed a beauty market that remains dynamic but accelerated our market share gains around the world," Chief Executive Nicolas Hieronimus said.
Deutsche Bank's Tom Sykes noted that, although the results point to an underlying acceleration, the market might be cautious about extrapolating too much.
L'Oreal and the wider beauty industry have been grappling with a slowdown in demand over the past few years, as well as headwinds from tariffs in the U.S. and rising competition from new brands.
Despite this and amid an uncertain environment marked by geopolitical turmoil and economic challenges, the company called a great start to the year and sounded a positive tone about the growth outlook for the global beauty market.
Analysts at Barclays said that the company's standout performance in the first three months isn't a one-off, "but rather a clear reflection of the group's underlying structural strength and long-term positioning."
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
April 23, 2026 03:58 ET (07:58 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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