With a 15% increase in sales, L’Oréal did better than analysts’ forecasts in the first quarter. Its luxury division, weighed down by China at the beginning of the year, did less well than its consumer products, which are nonetheless part of a premiumisation trend.
L’Oréal continues to move upmarket and consolidate its position as the world’s number one beauty company.
In the first quarter of 2023, its luxury division, which had moved up to first place in 2021, fell back to second place behind its consumer products division (Elsève, Garnier, Maybelline, L’Oréal Paris, etc.).
With an increase in turnover of +6.5% on a like-for-like basis to 3.7 billion euros, the luxury sector did less well than the consumer sector (+16% to 3.8 billion euros in turnover).
But if the consumer division “outperforms the market”, it is also because it “benefits from its premiumisation strategy (with more expensive products) while continuing to grow significantly in volume” says the cosmetics and perfumes giant.
Featured photo : © L’Oréal/ Mazarine