L’Oreal sales lag estimates on soft performance at Luxe division
Its results improve in the second half of 2025, but are curbed by a slump in the travel retail business in Asia
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[PARIS] L’Oreal sales missed estimates in the final months of 2025, after the French beauty group’s luxury division disappointed.
Its sales rose 6 per cent on a like-for-like basis in the fourth quarter, the company said in a statement on Thursday (Feb 12), trailing behind analysts’ expectations of an increase of about 6.5 per cent.
The results at its Luxe division, with brands including Lancome and Yves Saint Laurent, improved in the second half of the year, but were still held back by a persistent slowdown in the travel retail business in Asia, it added.
Sales at the unit rose 4.5 per cent, below estimates.
L’Oreal’s results follow sluggish performances at smaller rivals Estee Lauder and Coty in the most recent quarter.
The French company has proven resilient to the consumer slowdown in part because of its broad range of offerings, from specialist skincare products to mass-market makeup from Maybelline, and pricey soaps and fragrances from Aesop.
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The region that includes China remained the weakest area, posting growth that was below estimates. The like-for-like sales in North America and Europe both topped expectations.
Its shares have gained 6.8 per cent so far this year, and risen 17 per cent in the past 12 months.
Its dermatological beauty unit was the top performer last quarter, with sales jumping 11.5 per cent, helped by new product launches at CeraVe and strong demand for La Roche-Posay. Consumer products, its largest unit, posted sales growth of 4.8 per cent, in line with estimates.
L’Oreal’s results follow a disappointing performance from the perfume and beauty division of Hermes earlier on Thursday. That unit faced a tough comparison basis, with the launch of a fragrance that found strong success during the Christmas shopping season the prior year. BLOOMBERG
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