L'Oréal's Quarterly Sales Growth Hit a New Low Since the Epidemic Due to the Weak Chinese Market

L'Oréal's fourth-quarter sales grew 2.5%, the slowest growth since 2020, lower than analysts' expectations of 4.4%.

Sales in the fourth quarter reached 11.08 billion euros (11.49 billion U.S. dollars), an increase of 2.5% year-on-year, lower than the 3.4% increase in the third quarter.

Growth in North America slowed to 1.4%, far lower than the 5.2% growth in the third quarter, as inflation affected demand for skin care and cosmetics.

Sales in North Asia fell 3.6%, and sales shrank again in the quarter due to weak consumer spending in China.

The luxury goods division, which includes Valentino and Yves Saint Laurent Beauty, grew only 1%, lower than the 5% growth expected by analysts.

China's "Double Eleven" shopping festival performed poorly, and analysts believe that deep discounts led to over-buying and returns.

L’Oréal highlighted its global outperformance with full-year sales growth of 5.1%, despite a still-challenging market in China.

The company cited weak demand in China and slower growth in North America, its two largest markets, as key factors in the slowdown. Despite the challenges, full-year sales were up 5.1%, and L’Oréal is confident in its ability to outperform the global beauty market by 2025.