THE WHAT? L’Oréal reported a 3.5% rise in first-quarter like-for-like gross sales, supported by robust European demand for skincare and perfume, regardless of a decline in North American income.
THE DETAILS Gross sales reached €11.7 billion (US$13.3 billion) for the three months ending March 2025. Progress was boosted by a 2-point profit from early shipments to China forward of an IT system replace. Excluding that, underlying development stood at 1.5%, above analyst expectations of 1.1%. North America gross sales fell 3.8%—a reversal from 1.4% development the earlier quarter—pushed by weaker demand within the make-up class. CEO Nicolas Hieronimus famous deteriorating US shopper sentiment and commerce pressures as key challenges. Round 30% of L’Oréal’s US-sold merchandise are imported, and the corporate is getting ready for tariff impacts within the second half of the 12 months by elevating costs and constructing stock.
In the meantime, efficiency in China was secure, displaying enchancment from prior quarters. European markets had been the strongest contributors, with skincare and perfume main the class development.
THE WHY? Whereas L’Oréal has persistently outperformed the worldwide cosmetics market lately, Q1 outcomes reveal shifting dynamics. North America, a key development focus for 2025, is displaying indicators of shopper pullback—significantly in color cosmetics—because of financial uncertainty and commerce tensions. The corporate’s efficiency in Europe and a stabilising development in China supplied offsetting power in private care classes.
