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L’Or\u00e9al’s<\/strong> skincare and beauty product brands are expected to make a significant contribution to the company’s sales growth in the third quarter, thanks to the presumed acceleration in purchases in China<\/strong>.<\/p>\n <\/p>\n At the stock market’s closing on Thursday, the French company will reveal its third-quarter results, with global sales expected to increase by 11.5%<\/strong> organically compared to the previous year, according to a consensus cited by Barclays. Additionally, sales in North Asia<\/strong>, primarily driven by mainland China, have increased by 14.4%.<\/strong><\/p>\n <\/p>\n However, investors will be watchful for any indications suggesting that Chinese consumers are turning to more affordable or locally sourced products.<\/p>\n <\/p>\n “Investor nervousness about a slowdown in China appears to be high,”<\/em> said Iain Simpson<\/strong>, an analyst at Barclays, noting that disappointing reports from LVMH and Est\u00e9e Lauder<\/strong> have raised concerns about L’Or\u00e9al’s outlook.<\/p>\n <\/p>\n L’Or\u00e9al, which markets a range of brands in China, from Maybelline<\/strong> to the domestic brand Yuesai<\/strong> to the luxury brand Lanc\u00f4me<\/strong>, held the largest share of the Chinese beauty and personal care products market last year, valued at $78.9 billion.<\/strong><\/p>\n <\/p>\n Its shares have outperformed those of its competitors but still saw a decrease of around 9%<\/strong> over the past six months, compared to a 45%<\/strong> decline for Estee Lauder.<\/p>\n <\/p>\n <\/p>\n The post-pandemic spending wave is slowing in Europe and the United States, while in China, an uneven recovery has dashed hopes for a strong economic rebound. Last week, LVMH’s third-quarter results showed a slowdown in the growth of its perfumes and cosmetics sales, dropping from 16%<\/strong> in the previous quarter to 9%<\/strong>. This observation has prompted investors to lower their expectations for spending in the high-end market segment.<\/p>\n <\/p>\n JPMorgan<\/strong> analysts slightly reduced their annual sales growth forecast for L’Or\u00e9al to 12.1%<\/strong> at constant exchange rates, citing a slowdown in North Asia.<\/p>\n <\/p>\nGrowth revision<\/h2>\n
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