Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Euronext Paris  >  L'Oréal    OR   FR0000120321

L'ORÉAL

(OR)
  Report
SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Beauty boom: L'Oreal sales rebound after lockdowns ease

10/22/2020 | 10:23pm EST
FILE PHOTO: Vials of L'Oreal's luxury range Kerastase Fusio-Dose hair treatment products are displayed at Cuttour hair salon in Jewel Changi Airport in Singapore

PARIS (Reuters) - L'Oreal, the French company behind Maybelline cosmetics and Garnier shampoo, said on Thursday it was back to revenue growth in the third quarter as it performed well with Chinese customers and kept up its product launches.

Like companies in the luxury goods sector, L'Oreal was hit hard by coronavirus lockdowns earlier this year when stores and airport retailers shut down. It was also hurt by hair salons having to close temporarily, as it sells professional products.

But revenues have since recovered in most divisions, including in the mass market unit that produces ranges like Garnier for sale in supermarkets.

Overall sales came in at 7 billion euros ($8.27 billion), for the July to September period, rising 1.6% from a year earlier on a like-for-like basis, which strips out currency effects and acquisitions.

That compared to a 19% year-on-year drop in the previous quarter, and analysts had expected sales to remain in negative territory.

The biggest improvement came not at L'Oreal's best known make-up brands like Maybelline, but from its active cosmetics division, which caters to dermatological conditions with labels like Vichy, La Roche Posay and CeraVe, which it bought in 2017.

Chairman and Chief Executive Jean-Paul Agon - who is preparing to hand over the CEO reins to company veteran Nicolas Hieronimus in May 2021 - told analysts on a conference call that the group had taken market share in this segment.

Asked about a potential "wellness" boom, as people took care of themselves during coronavirus lockdowns, he added however that this had not been a major factor in the active cosmetics growth.

Agon said that L'Oreal had also outperformed rivals in the key Chinese market, where it has a strong presence, echoing improving demand in Asia noted by luxury goods makers such as Hermes and Louis Vuitton.

"The fact that Chinese consumers do not travel anymore is a pity for travel retail but a bonanza for the business we do in China," Agon said.

LUXURY LAGS

The group, which has launched a perfume campaign for a Valentino fragrance starring Lady Gaga, also said it had kept investing in marketing despite the crisis, and benefited from a further pick-up in its online sales.

But the performance of its luxury products unit, home to Lancome and which makes cosmetics for Armani, lagged that of other divisions, and remained in negative territory. This was partly due to the impact of travel restrictions, the group said.

L'Oreal has remained upbeat about the outlook for beauty products throughout the coronavirus crisis and despite concerns that lockdowns would discourage people from wearing make-up.

Agon said he was cautious about the current rise in COVID-19 cases including in Europe - and ensuing restrictions on movement - but still expected growth in fourth quarter sales, and the group confirmed that it expected like-for-like sales to expand in the second half of 2020 as a whole.

($1 = 0.8460 euros)

(Reporting by Sarah White; Editing by David Goodman, David Evans and Alexandra Hudson)

By Sarah White


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
CHRISTIAN DIOR SE -0.55% 431.6 Real-time Quote.-5.52%
L'ORÉAL 1.14% 309.3 Real-time Quote.17.16%
LVMH MOËT HENNESSY - LOUIS VUITTON SE 0.05% 496 Real-time Quote.19.75%
All news about L'ORÉAL
11/27L'OREAL : Take part in the L'Oréal adventure
PU
11/19LVMH MOËT HENNESSY LOUIS VUITTON : Perfect Diary parent's shares soar in U.S. de..
RE
11/13China drafts rules to govern its booming livestreaming sales industry
RE
11/12Alibaba, JD.com say U.S. was top seller to China during Singles' Day event
RE
11/11Alibaba's Singles Day sales top $74 billion, planned rules hit shares
RE
11/10L'ORÉAL : Applies Digital Makeover to Sales Efforts
DJ
11/09LOREAL : Morgan Stanley from Sell to Neutral
MD
11/05L'Oreal turns to Google as coronavirus spurs virtual make-up shift
RE
11/04L'Oreal Reorganizes Geographical Zones
DJ
11/04L'OREAL : L'oréal announces new organisation of geographic zones
PU
More news
Financials
Sales 2020 27 894 M 33 370 M 33 370 M
Net income 2020 3 743 M 4 478 M 4 478 M
Net cash 2020 3 558 M 4 256 M 4 256 M
P/E ratio 2020 46,6x
Yield 2020 1,31%
Capitalization 173 B 207 B 207 B
EV / Sales 2020 6,08x
EV / Sales 2021 5,52x
Nbr of Employees 87 974
Free-Float 42,2%
Chart L'ORÉAL
Duration : Period :
L'Oréal Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends L'ORÉAL
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 289,23 €
Last Close Price 309,30 €
Spread / Highest target 21,4%
Spread / Average Target -6,49%
Spread / Lowest Target -34,0%
EPS Revisions
Managers
NameTitle
Jean-Paul Agon Chairman & Chief Executive Officer
Alexis Perakis-Valat President-Consumer Products Division
Barbara Lavernos Chief Operating & Technology Officer & EVP
Christophe Babule Chief Financial Officer & Executive Vice President
Laurent Attal Vice President & GM-Research & Innovation
Sector and Competitors
1st jan.Capitalization (M$)
L'ORÉAL17.16%206 867
DABUR INDIA LIMITED9.03%11 932
PIGEON CORPORATION17.93%5 452
PALTAC CORPORATION16.60%3 751
GUANGDONG MARUBI BIOTECHNOLOGY CO., LTD.-8.71%3 353
EDGEWELL PERSONAL CARE COMPANY15.25%1 939