L'Oreal Sales Growth Strong in Q3 Despite China Headwinds
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L'Oreal reported strong sales growth in Q3, up 11.1% like-for-like, driven by Europe and North America. However, sales in China missed expectations, down 4.8%.
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The decline in China was due to impacts on travel retail in Hainan/South Korea from tighter controls on daigou resellers. L'Oreal expects this impact to be temporary.
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In mainland China, sales grew 7.7% in the first 9 months. L'Oreal continues to gain market share, despite a muted recovery.
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L'Oreal saw no signs of trading down among consumers in Europe, despite high inflation.
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The luxury division slowed to 3.2% growth, suggesting high-end purchases are being reined in globally.