L’Oréal Reports 13 Percent Increase in Sales — Retail Bum

Cosmetics giant L’Oréal is continuing to ride the surge in demand for makeup, recording a 13% increase in Q1 sales.

The company’s sales for the quarter that ended in March came out at $9.46 billion, beating analysts’ expectations of an 8.9% increase in revenue.

Demand for L’Oréal’s products was primarily driven by the Americas and Europe, where sales were up by an average of 16.3%. In particular, L’Oréal registered a stronger demand for its consumer products and those offered by its dermatological beauty division, such as the CeraVe skincare line.

Meanwhile, sales in China remained subdued despite the lifting of Covid-19 lockdowns in the country. L’Oréal noted that while consumer demand and store traffic have resumed since February, low inventory levels in China have had a negative impact on its business.

“In a beauty market that remains very dynamic, L’Oréal has maintained strong growth momentum and posted an excellent first quarter,” said Nicolas Hieronimus, CEO of L’Oréal Group. “This performance, which has yet to benefit from China’s reopening, demonstrates the strength of L’Oréal’s balanced multipolar model.”

L’Oréal bought Australian luxury brand Aēsop from Natura & Co. for $2.53 billion last month, marking its largest acquisition to date. Aēsop currently operates 400 stores across the Americas, Europe, Australia, and Asia and has a nascent footprint in China, where its first store opened in 2022.

Originally published at https://retailbum.com on April 19, 2023.