L’Oreal sales jump 13.5 per cent in market beating first quarter
L’Oreal has reported booming sales growth as consumers brushed off concerns about inflation and picked up luxury cosmetics.
Sales across L’Oreal’s portfolio, which includes luxury brands such as Yves Saint Laurent, Giorgio Armani, Prada and Valentino, jumped 13.5 per cent in the first quarter on a like for like basis as the global beauty market continued to lure shoppers. The cosmetics giant reported sales of €9.06bn (£7.5bn) for the first three months of the year, up from €7.6bn a year prior.
“ Against the backdrop of the invasion of Ukraine and strengthened sanitary measures in China, L’Oréal had a strong first quarter,” commented Nicolas Hieronimus, the chief executive of L’Oreal.
“In the first three months of the year, the growth trend continued in the global beauty market, with consumer purchasing behaviour unaffected by inflation,” he added.
Hieronimus said L’Oreal “continued to outpace the beauty market” across all geographic zones and business divisions.
Like for like sales increased by 22 per cent in Latin America, 12 per cent in North America and 16 per cent in Europe – L’Oreal’s largest market – where intake neared €2.5bn.
Analysts for the consultancy firm Third Bridge said that strong results for L’Oreal indicate the “beauty boom” is continuing a “momentous run.”
Nonetheless, senior analyst Ross Hindle warned that China, a “key growth engine” for the group, continues to face a “subdued performance as lockdowns stifle demand.”
Read more: L’Oreal to only use renewable ingredients by 2030