L'Oréal Q2 sales

L’Oréal reported a 5.3% increase in second-quarter sales, reaching €10.88 billion, but this fell short of analysts' expectations for a 6% gain. The company attributed the slower growth partly to a downturn in the Chinese beauty market, where consumer confidence remains low amid economic uncertainties. CEO Nicolas Hieronimus indicated that the Chinese market is expected to remain 'slightly negative' in the second half of 2024, complicating recovery efforts. Despite the challenges, L’Oréal's overall sales for the first half of the year rose 7.3%, driven by strong performances in Europe and emerging markets. The Dermatological Beauty and Consumer Products divisions continued to show growth, although the pace slowed in some areas due to decreased demand in the U.S. and China. Analysts suggest that L’Oréal's ability to innovate and penetrate emerging markets may help it maintain a competitive edge amid broader industry slowdowns.