L’Oreal Makeup Sales Recover After Restrictions Ease Worldwide
(Bloomberg) -- L’Oreal SA sales recovered as the easing of pandemic restrictions worldwide led consumers to use more makeup.
Sales jumped 34% in the three months through June on a comparable basis, the French cosmetics company said Thursday in a statement. Analysts had expected a 30% gain. L’Oreal benefited from easy comparisons with last year when many hair salons and non-essential stores were shut.
Strict lockdowns in 2020 led to a drop in demand for Maybelline New York makeup and Lancome perfume amid a dearth of social occasions. Thanks to the vaccine rollout and the end to many restrictions this year, demand for these products has improved.
“With the health situation still uncertain, the beauty market is gradually recovering,” with L’Oreal “significantly outperforming the market,” Chief Executive Officer Nicolas Hieronimus said in the statement. He added the group “is well-positioned to continue to grow at its pre-crisis pace.”
Revenue at the consumer products division rose 14% during the quarter, partly helped by demand for Maybelline’s Sky High Mascara and the Shine Loud lipstick by NYX Professional Makeup.
Demand for skincare products continued to power ahead, notably for the CeraVe and La Roche-Posay brands.
In Europe, a region that had trailed others in the recovery process, sales are “close to pre-crisis levels,” with the exception of travel retail, still “badly affected” by restrictions on international travel. Revenue in the region jumped 28% during the period.
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