PARIS, April 23 (Reuters) - Shares in L'Oreal jumped almost 9%, on track for their best day since 2008, after the French cosmetics group posted first-quarter sales growth of 6.7% on Wednesday, beating expectations with its fastest quarterly growth in two years.
The group said consumers in the U.S., China and Europe all bought more of its premium hair products and perfume in the quarter and it was optimistic about 2026 growth in both sales and profits, despite growing concerns about consumer confidence in the face of the Middle East war.
"L'Oreal has returned to form," said analysts at RBC, who had estimated growth at 5.6%.
Shares were up 8.9% at 375 euros by 0726 GMT. They had been down about 6% year to date, with worries about the ripple effects of the Middle East conflict weighing on the sector.
However, the maker of Kerastase shampoo, La Roche-Posay creams and YSL Libre perfume said first-quarter sales in China had improved, driven by demand for luxury products, while its emerging markets and particularly Vietnam saw high growth.
In Europe, its largest market, consumers were resilient and buying cosmetics to feel better in stressful times, CEO Nicolas Hieronimus told analysts, adding there was no change to consumption patterns since the outbreak of the Iran war.
"We are encouraged by the strength and breadth of Q1," said analysts at JPMorgan, adding they had raised their forecast for full-year sales growth to 4.8% from 4.1% earlier, despite an expected slowdown in the second quarter.
(Reporting by Dominique Patton; Editing by David Goodman and Clarence Fernandez)
By Dominique Patton
