On June 27, Bloomberg reported, citing a spokesperson for L’Oréal SA, that L’Oréal Group CEO Nicolas Hieronimus expressed to investors at a JPMorgan event in Paris that he now expects this year’s global beauty market growth rate to decrease from the initial forecast of 5% to between 4.5% and 5%.
The L’Oréal spokesperson added that the Chinese Mainland market has long been a growth engine for the Group; however, the current flat performance in the Chinese Mainland is the primary reason for Nicolas Hieronimus lowering the forecast.
Following the news, L’Oréal Group’s stock, listed on the Paris Stock Exchange, fell 3.4% on June 27, closing at 422.85 euros with a current market value of 218 billion euros. Other major peers, such as the American company Estée Lauder, Japan’s Shiseido Group, and Germany’s Beiersdorf Group, also saw varying degrees of stock price declines.
The first-quarter data released by L’Oréal Group in April had temporarily alleviated industry concerns about the beauty market: in that quarter, L’Oréal Group’s sales increased by 8.3% year-on-year to 11.24 billion euros, a growth of 11.8% at constant exchange rates, and 9.4% on a comparable basis (based on a comparable brand portfolio and fixed exchange rates); all of the Group’s divisions saw growth, with the Consumer Products Division and the Dermatological Beauty Division performing exceptionally well.
For more performance data, see Luxe.CO’s historical report: L’Oréal Group’s First-Quarter Sales Grew 9.4% Year-on-Year, with a 6.2% Increase in the Chinese Mainland.
L’Oréal Group will release its second-quarter and first-half performance report on July 30.
| Source: Bloomberg, Fortune, Yahoo Finance
| Image Credit: L’Oréal Group official website
| Editor: LeZhi
