L’Oréal Benefits From 'Skin-Care Comeback,' With Mass Makeup Slowing
This article was originally published in The Rose Sheet
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.
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L’Oreal is not only learning new tricks in today’s digital world but continuing to outpace the competitive pack, with sales up double digits in fiscal 2019 to €29.9bn.
L'Oreal Luxe's 10.5% like-for-like growth in fiscal 2017 substantially overshadowed the 2.2% LFL improvement in the firm's Consumer Products unit. "Maybe in the mass [channel] in the U.S. for the past two or three years, we didn't give consumers enough desire to want to buy beauty," but the company is committed to accelerating innovation and bringing consumers back, CEO Jean-Paul Agon says
The beauty giant's second-quarter performance reflects global momentum in specialty retail and online channels and accelerating growth in China in particular. Analysts previously expressed concerns that increased distribution away from department stores could dilute Lauder's prestige positioning, but the firm consistently has defended the shift as essential to its future with younger consumers