Salem Radio Network News Friday, May 20, 2022

Business

Luxury demand fuels L’Oreal’s quarterly sales growth

PARIS (Reuters) -L’Oreal on Thursday posted better-than-expected revenue growth for the third-quarter, fuelled by continued strong demand for its luxury lines.

The French group, which owns brands like Lancome and makes Armani cosmetics, saw luxury sales surge over 20%, as it benefited from e-commerce channels it expanded during the pandemic and stores that reopened.

Though mainland China continued to post double-digit growth during the quarter, helped by strong demand for hair and skincare products, sales there suffered from a resurgence of some regional coronavirus curbs.

China last year became the world’s second-largest market for beauty and personal care products after the United States, according to market research firm Statista, as a growing middle class and social media influence boosted demand for premium brands.

The company reported sales up 13.1% from July to September, excluding currency swings and acquisitions, materially beating analysts’ forecasts.

Consensus estimates cited by Deutsche Bank had predicted growth at around 8%, fearing that demand would taper off following a post-lockdown boom.

Sales had surged 33.5% in the previous three months, when L’Oreal and fashion labels benefited from booming Chinese and U.S. demand amid easing coronavirus curbs.

(Reporting by Mimosa Spencer and Sarah Morland; Editing by Elaine Hardcastle and Jonathan Oatis)

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