L’Oréal Stories Q1 Gross sales Development Regardless of US Decline in Make-up Demand

THE WHAT? L’Oréal reported a 3.5% rise in first-quarter like-for-like gross sales, supported by sturdy European demand for skincare and perfume, regardless of a decline in North American income.

THE DETAILS Gross sales reached €11.7 billion (US$13.3 billion) for the three months ending March 2025. Development was boosted by a 2-point profit from early shipments to China forward of an IT system replace. Excluding that, underlying progress stood at 1.5%, above analyst expectations of 1.1%. North America gross sales fell 3.8%—a reversal from 1.4% progress the earlier quarter—pushed by weaker demand within the make-up class. CEO Nicolas Hieronimus famous deteriorating US client sentiment and commerce pressures as key challenges. Round 30% of L’Oréal’s US-sold merchandise are imported, and the corporate is getting ready for tariff impacts within the second half of the yr by elevating costs and constructing stock.

In the meantime, efficiency in China was steady, displaying enchancment from prior quarters. European markets had been the strongest contributors, with skincare and perfume main the class progress.

THE WHY? Whereas L’Oréal has persistently outperformed the worldwide cosmetics market in recent times, Q1 outcomes reveal shifting dynamics. North America, a key progress focus for 2025, is displaying indicators of client pullback—significantly in color cosmetics—on account of financial uncertainty and commerce tensions. The corporate’s efficiency in Europe and a stabilising development in China supplied offsetting power in private care classes.