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L’Oreal ‘Surfing’ Makeup Wave To Projected Strong Finish For FY 2016

This article was originally published in The Rose Sheet

Executive Summary

Acquired brands NYX and Urban Decay are leading growth in L’Oreal’s makeup business, up 15% for the year to date. Strong demand for color cosmetics in the mass and luxury channels drove the firm’s Q3 sales, surpassing analyst expectations, if not L’Oreal’s.

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L’Oréal Benefits From 'Skin-Care Comeback,' With Mass Makeup Slowing

The French beauty giant has reported back-to-back quarters of sluggish mass-market makeup growth, particularly in the US, but strong performances from luxury and skin-care products drove sales up 4%, reported, during the first half of fiscal 2017. L'Oreal is eager to reinvest proceeds from its sale of The Body Shop to increase profitability in the back half of the year, company leadership says.

Cosmetics News In Brief: Unilever Moves Into Makeup; L'Oreal Divests The Body Shop; More

"The color cosmetics category has been showing high growth rates, driven by social media content, channel diversity and democratization of professional makeup techniques," Unilever's Personal Care President Alan Jope notes in a June 19 release announcing the acquisition of Hourglass Cosmetics. More news in brief.

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Clarisonic announced plans in late 2016 to outsource device manufacturing and focus on innovation, and the brand figures in parent L’Oreal’s vision for a “comeback” in skin care. The newly launched Clarisonic Smart Profile Uplift system combines core cleansing technology with a specialized Firming Massage Head for benefits across 15 signs of aging, the company says.

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