L'Oréal S.A. Q1 Revenue Grows Counter-Trend by 7.6% as Europe and North America Core Markets Recover | Earnings Insights

The world's largest beauty group, L'Oréal S.A., announced strong first-quarter results, showing robust resilience amid an overall consumption slowdown as demand for multiple product lines under its umbrella recovered. The company revealed on Wednesday that first-quarter sales reached €12.152 billion, representing a 7.6% year-over-year increase on a comparable basis. All four business segments recorded positive growth, with the Professional Haircare division (15.5%) and Dermatology-based Skincare division (10.8%) both achieving double-digit increases. This performance significantly outpaced the overall global beauty market. Regionally, the top two revenue markets, Europe (10.3%) and North America (11.4%), also achieved double-digit growth. In contrast, same-store sales in the North Asia region declined by 4%. Demand in the Middle East was suppressed due to ongoing conflicts, particularly evident in the UAE market. Chief Executive Officer Nicolas Hieronimus stated that the company not only outperformed the beauty market but also accelerated its expansion of market share globally, expressing confidence in achieving double-digit growth in both sales and profits over the coming year. On March 31, L'Oréal completed the acquisition of the beauty business from Kering Group for €4 billion. The acquired assets include the fragrance brand House of Creed, along with 50-year exclusive licenses for fragrances and beauty products from Bottega Veneta and Balenciaga, significantly bolstering its premium beauty brand portfolio. Following the earnings announcement, L'Oréal's American Depositary Receipts (ADRs) rose over 6% during trading. While the company's stock has fallen approximately 5.9% year-to-date in the Paris market, its performance far outstripped peers—U.S. beauty giant Estée Lauder saw its stock decline by 28% over the same period. Recovery in European and North American Regional Sales From a regional perspective, same-store sales in Europe grew by 10.3%, with particularly strong performance in the Spain-Portugal and Germany-Austria-Switzerland market groups, while e-commerce channels continued to accelerate. Same-store sales in North America increased by 11.4%, making it the second-largest mature market by revenue. The beauty market remained active overall, and L'Oréal continued to capture share through successful innovative products and retailer partnerships. Same-store sales in the North Asia region declined by 4%. Meanwhile, demand in the Middle East was suppressed due to ongoing conflicts, especially in the UAE market. L'Oréal noted that excluding the impact of IT system transformation, adjusted comparable revenue for the first quarter increased by 6.7%. Business Segments: Professional Haircare and Dermatology Skincare Lead; Premium Beauty Recovery Confirmed All four business segments recorded growth in same-store sales, with the Professional Haircare Division (PPD) and Dermatology-based Skincare Division (LDB) standing out. Professional Haircare same-store sales grew by 15.5%. New products such as Kérastase Gloss Absolu Crème and Redken Acidic Growth Full performed exceptionally well, and the integration of the Color Wow brand proceeded smoothly, with plans to roll out globally throughout 2026. Dermatology-based Skincare same-store sales grew by 10.8%. Driven by the Cicaplast series and Hyalu B5 Suractivated, La Roche-Posay maintained strong momentum. CeraVe confirmed business turnarounds across all global regions, and SkinCeuticals' A.G.E. Interrupter series continued to contribute to growth. The Luxury Division (Luxe) recorded a 5.2% increase in same-store sales, confirming its recovery trend. Fragrance remains the primary growth engine, with classic lines such as Prada Paradigme, YSL Libre, and Valentino Born in Roma performing strongly. The newly launched Emporio Armani Power of You also debuted impressively. The Consumer Products Division (CPD) saw same-store sales grow by 5.8%, significantly outperforming the global mass beauty market in terms of sales volume. Backed by a diverse product portfolio spanning professional skincare, mass makeup, and premium fragrances, L'Oréal maintained relatively steady growth even as competitors faced pressure.