Key Takeaways:
- L'Oreal Q2 sales rose 6.3% to €11.6 billion, beating consensus of 5.7%.
- Professional products and dermatological beauty both grew by double digits.
- The company said it expects to continue outperforming the overall market.
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L'Oreal Q2 sales rise 6.3% as haircare demand drives beat
L'Oreal reported second-quarter sales of €11.6 billion, up 6.3% on a like-for-like basis and ahead of analyst expectations.
"Going into the second half, we are confident of continuing to outperform the overall market," the company said in a statement.
The professional products and dermatological beauty divisions both grew by double digits, while the luxe unit — L'Oreal's second-largest division — missed analysts' estimates. For the first half, sales reached €23.77 billion, up 6.8% like-for-like, beating the €23.6 billion consensus. Net profit rose to €3.55 billion from €3.37 billion a year earlier, while operating profit increased to €5.06 billion from €4.74 billion.
The better-than-expected results point to resilience in the global beauty market as consumers continue spending on personal care despite broader economic pressures. L'Oreal's performance was lifted by strong demand among hairdressers for professional styling products and the so-called lipstick effect, where shoppers trade down on big-ticket items but maintain spending on small indulgences.
The Paris-based maker of CeraVe skincare, Maybelline makeup and Valentino perfume posted growth across all geographic regions, the company said. The mass market brands also contributed to the beat, alongside premium haircare.
The guidance raise shows management expects consumer demand for beauty products to remain resilient. Investors will watch the first-half earnings call for updated commentary on regional trends and margin performance.
This article is for informational purposes only and does not constitute investment advice.
