L'Oreal, the world's largest beauty company, reported fourth-quarter sales that fell short of market projections due to continued weakness in the Chinese beauty market and a slowdown in demand in the United States.
L'Oreal, the world's leading beauty brand, reported fourth-quarter sales that fell short of analyst expectations, driven by persistent weakness in the Chinese beauty market and a deceleration in demand in the United States. The company generated sales of 11.08 billion euros ($11.49 billion) in the three months ending December, marking a 2.5% increase on a comparable basis and narrowly missing the projected 11.1 billion euros.
Like-for-like sales growth was observed across all regions except North Asia, which experienced a 3.6% decline, continuing a slowdown observed in recent quarters. North American sales, while still positive, rose by a modest 1.4%, down from the previous quarter's 5.2% growth. L'Oreal's performance across all divisions was positive, spearheaded by accelerated growth in the dermatological beauty and professional products segments.In a statement accompanying the results, CEO Nicolas Hieronimus acknowledged the 'challenging Chinese ecosystem' but highlighted a broader normalization of the global beauty market following a period of macroeconomic pressures. He expressed optimism about the global beauty market's prospects and L'Oreal's capacity to outperform it, projecting another year of sales and profit growth. The company, known for its diverse portfolio of brands including Lancôme, Maybelline, and Kiehl's, has faced challenges from weakening consumer demand, particularly in the crucial Chinese market, a trend also affecting high-end luxury companies.
L'oreal Beauty Industry Sales China US Macroeconomic Pressures Consumer Demand
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