L’Oréal reported a 2.5% increase in fourth-quarter sales, marking its slowest growth since 2020 and falling short of analyst projections of 4.4%.
Revenue for the quarter reached €11.08 billion ($11.49 billion) on a like-for-like basis, down from 3.4% growth in Q3. North America’s growth slowed to 1.4%, a steep drop from 5.2% in Q3, as inflation dampened demand for skincare and makeup. North Asia sales shrank by 3.6%, extending a decline driven by weak consumer spending in China.
L’Oréal’s Luxe division, which includes Valentino and Yves Saint Laurent Beauty, saw just 1% growth, well below analysts’ expectations of 5%. The slowdown was exacerbated by a weaker-than-expected Singles Day shopping festival in China, where deep discounts led to overbuying and high return rates.
Despite challenges in two of its largest markets, L’Oréal posted 5.1% full-year sales growth and expressed confidence in outperforming the global beauty market in 2025.
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