L’Oréal has released its first quarter results for 2019, following in the footsteps of LVMH, and the numbers reveal consistent growth in its activities. The cosmetics group reported sales of 7.55 billion euros between January and March, surpassing expectations with a growth rate of 7.7% at constant exchange rates and perimeter. Despite concerns of a slowdown in the Chinese market, L’Oréal continues to experience positive growth, building upon its strong performance in 2018.
L’Oréal attributes its growth to several key drivers, which have remained consistent throughout recent months. Luxury and Active Cosmetics, skincare, Asia, e-commerce, and Travel Retail continue to be the driving forces behind the company’s success. According to Jean-Paul Agon, CEO of L’Oréal, these growth drivers have played a crucial role in sustaining the company’s performance. However, performance within different divisions and regions remains varied, reflecting the contrasting nature of the market as a whole.
The L’Oréal Luxe Division saw impressive growth, achieving a +14.2% increase on a comparable basis and a +19% increase on a reported basis. Four brands in particular, Lancôme, Yves Saint Laurent, Giorgio Armani, and Kiehl’s, stood out with above-average performance in a selective and dynamic market. Successes in the skincare segment, such as Lancôme’s Génifique line and Kiehl’s Ultra Facial Cream, as well as popular makeup items like Armani Matte Lipstick and YSL’s Rouge Pur Couture The Slim, contributed to the brands’ growth. The Asia region, particularly China, India, Indonesia, and Malaysia, showed strong enthusiasm for these premium products.
Luxury’s growth was also driven by e-commerce and Travel Retail, in line with the overall trend observed across all of L’Oréal’s activities. Online sales experienced a remarkable growth rate of +43.7%, while L’Oréal’s Travel Retail sector positioned itself at +24.1%, reflecting the positive dynamics observed in airport sales throughout 2018.
Overall, L’Oréal’s first quarter results for 2019 exceeded expectations, building upon the company’s exceptional performance in 2018. The consistent growth drivers of Luxury and Active Cosmetics, skincare, Asia, e-commerce, and Travel Retail remain instrumental in driving L’Oréal’s success.
For more information:
– L’Oréal’s official announcement
– Forbes article on L’Oréal’s growth and the Chinese market
