L'Oreal Shares Drop 7% After Q3 Sales Miss Expectations Amid Murky Outlook

Shares of the French cosmetics giant L’Oréal plunged around 7% after the company reported weaker-than-expected third-quarter sales, with revenues of €10.3 billion falling short of the 4.9% growth anticipated by analysts. Despite some positive signs such as growth in the Chinese market and recovery in the U.S., sales in North and Latin America were below forecasts, leading to investor concerns about L’Oréal’s growth momentum amid a murky outlook. Barclays analysts expressed skepticism about the company’s ability to outperform the beauty sector, citing unclear sources of growth and cautious full-year guidance. The sharp stock decline also sparked broader concerns about consumer spending trends in the luxury goods sector, with potential ripple effects on risk-sensitive assets like cryptocurrencies as reduced consumer confidence could dampen investments in related digital markets. Trading volumes surged, reflecting heightened market volatility, and L’Oréal’s performance was seen as indicative of wider economic uncertainties affecting discretionary spending. Investors and analysts remain watchful of L’Oréal’s next steps as the beauty industry grapples with increasing competition and shifting consumer behaviors.