04.20.22
Inflation didn't impact sales for the world's largest beauty company. First quarter sales at L'Oréal soared 19% and reached 9.06 billion euros ($9.78 billion at current exchange rates). The company noted results significantly outperformed the overall beauty market. Growth was reported in all divisions and geographic zones. In addition, traditional brick-and-mortar sales jumped 15.5%. On a like-for-like basis, sales increased 13.5% and were up 13.9% at constant exchange rates.
"In the first three months of the year, the growth trend continued in the global beauty market, with consumer purchasing behavior unaffected by inflation. L’Oréal pursued its premiumization and innovation strategy and continued to outpace the beauty market across all zones and divisions, recording strong growth by volume and value," said CEO Nicolas Hieronimus. "L’Oréal Luxe, Professional Products and Active Cosmetics all achieved double-digit growth, and our Consumer Products Division again outperformed the market despite supply-chain challenges. We made the most of our omnichannel strategy, with a clear revival in offline sales while e-commerce continued to grow, representing 25.8% of sales."
Hieronimus said growth was balanced across all geographic zones, with continued outstanding momentum in North America, double-digit growth in mainland China, and an acceleration in emerging markets as well as in Europe, where growth was muted by a number of lockdowns in early 2021.
By division, professional products, driven by haircare, recorded strong growth of 17.6% like-for-like and 22.7% reported. According to L'Oréal, the division maintained solid momentum in all geographic zones, with outstanding performance in the US, Germany, India and mainland China. It successfully capitalized on its omnichannel strategy, with an acceleration of in-salon sales, sustained growth across the SalonCentric network in the US, and a sharp increase in e-commerce sales. Top performers included Serie Expert by L’Oréal Professionnel and Prescriptions by Redken. Kérastase continued its upward trend, with the successful launch of Chroma Absolu a highlight. Success in hair color was largely due to the sustained growth of Shades EQ by Redken, and Inoa and Dialight by L’Oréal Professionnel.
Q1 sales within the consumer products division rose 6.9% like-for-like and 11.1% reported. Big gains were reported in Europe and in the US, despite supply chain difficulties. In Latin America and SAPMENA – SSA (South Asia Pacific, Middle East and North Africa), the division achieved standout performance, while results in North Asia were hurt by the slowdown of some e-commerce players in mainland China. By channel, growth was driven by the strong upswing in brick-and-mortar sales, while e-commerce continued to grow. L'Oréal said all major consumer product brands grew during the period. L’Oréal Paris enjoyed strong momentum in haircare, with the success of Hyaluron Plump, and in makeup, with True Match serum. The brand also gained more ground in emerging markets and especially in South Asia, with the launch of Glycolic Bright. Garnier showed a significant acceleration in skincare, buoyed by the global success of Fast Bright and its Vitamin C Brightening Serum. Both Maybelline New York and NYX Professional Makeup revitalized the makeup category, with highly successful launches for Colossal Curl Bounce mascara and Bare With Me Concealer Serum.
The Luxe division reported like-for-like growth of 17.5% like-for-like and 25.1% reported—outperforming the global luxury beauty market. L’Oréal Luxe achieved balanced growth across geographic zones. In fact, by the end of the quarter, the division held a historic market share in North Asia. The division gained market share thanks to the strength of its brand portfolio. The couture brands Yves Saint Laurent, Giorgio Armani, Prada and Valentino grew significantly faster than their markets. Lancôme consolidated its leadership in mainland China and its position among the Top 3 in the West. Fragrance sales were driven by scents like Maison Margiela Replica and Armani Privé. In skincare, sales rose on the strength of ultra-premium brands like Lancôme Absolue and Helena Rubinstein. Newly-acquired brands Takami and Youth to the People showed promise, too. Shu Uemura and Urban Decay recorded strong growth in makeup.
Active division recorded strong growth of 18.0% like-for-like and 22.4% reported. The division gained market share in each zone. All Zones achieved double-digit growth, led by North America and in SAPMENA – SSA. Online sales growth continued while brick-and-mortar outlets saw a sharp upswing, driven by professional channels. Active brands built on their partnership with healthcare professionals. La Roche-Posay’s strong performance was fuelled by the ongoing success of Cicaplast and Effaclar and boosted by the launch of UVmune sun protection. CeraVe maintained outstanding momentum in all Zones. Growth at Vichy was fuelled by Dercos and a solid performance in sunscreens.
By region, European sales grew 16.4% like-for-like and 15.8% reported. The biggest gains came in the UK, Spain and Italy. European sales were diven by strong growth in the fragrance and makeup categories. Online sales declined slightly due to strong comps, but were up significantly vs. two years ago.
Sales in North America grew 12.6% like-for-like and 21.5% reported. By channel, e-commerce continued to grow and brick-and-mortar sales bounced back strongly, according to the company. Sales gains were recorded in all segments; with professional product sales rising sharply, especially in the SalonCentric channel.
Sales in North Asia rose 9.4% like-for-like and 18.0% reported. The gains came despite a wave of Covid-19 infections. L’Oréal Luxe achieved strong market-share gains. Consumer product sales rose on the strength of makeup and haircare sales.
Sales within the SAPMENA Zone grew 15.8% like-for-like and 18.7% reported. The company reported a strong recovery in South-East Asia and in South Asia, and strong performance in India and Gulf countries.
In Sub-Saharan Africa (SSA), L’Oréal recorded notable performance in South Africa and Kenya. Active Cosmetics achieved exceptional growth. L’Oréal Luxe posted outstanding growth, driven by ongoing momentum in both women’s and men’s fragrances. The Consumer Products Division experienced a clear recovery in makeup.
Finally, in Latin America, sales 22.2% like-for-like and 33.9% reported. L’Oréal recorded outstanding performance in Mexico and Chile, while Brazil saw strong growth. The Consumer Products division made significant market share gains. L’Oréal Luxe and Active Cosmetics reaffirmed their No.1 position. The Professional Products division also recorded a solid performance as consumers are returning to salons. L’Oréal enjoyed strong growth in all major categories, most notably in haircare, skincare and fragrances.
"In the first three months of the year, the growth trend continued in the global beauty market, with consumer purchasing behavior unaffected by inflation. L’Oréal pursued its premiumization and innovation strategy and continued to outpace the beauty market across all zones and divisions, recording strong growth by volume and value," said CEO Nicolas Hieronimus. "L’Oréal Luxe, Professional Products and Active Cosmetics all achieved double-digit growth, and our Consumer Products Division again outperformed the market despite supply-chain challenges. We made the most of our omnichannel strategy, with a clear revival in offline sales while e-commerce continued to grow, representing 25.8% of sales."
Hieronimus said growth was balanced across all geographic zones, with continued outstanding momentum in North America, double-digit growth in mainland China, and an acceleration in emerging markets as well as in Europe, where growth was muted by a number of lockdowns in early 2021.
By division, professional products, driven by haircare, recorded strong growth of 17.6% like-for-like and 22.7% reported. According to L'Oréal, the division maintained solid momentum in all geographic zones, with outstanding performance in the US, Germany, India and mainland China. It successfully capitalized on its omnichannel strategy, with an acceleration of in-salon sales, sustained growth across the SalonCentric network in the US, and a sharp increase in e-commerce sales. Top performers included Serie Expert by L’Oréal Professionnel and Prescriptions by Redken. Kérastase continued its upward trend, with the successful launch of Chroma Absolu a highlight. Success in hair color was largely due to the sustained growth of Shades EQ by Redken, and Inoa and Dialight by L’Oréal Professionnel.
Q1 sales within the consumer products division rose 6.9% like-for-like and 11.1% reported. Big gains were reported in Europe and in the US, despite supply chain difficulties. In Latin America and SAPMENA – SSA (South Asia Pacific, Middle East and North Africa), the division achieved standout performance, while results in North Asia were hurt by the slowdown of some e-commerce players in mainland China. By channel, growth was driven by the strong upswing in brick-and-mortar sales, while e-commerce continued to grow. L'Oréal said all major consumer product brands grew during the period. L’Oréal Paris enjoyed strong momentum in haircare, with the success of Hyaluron Plump, and in makeup, with True Match serum. The brand also gained more ground in emerging markets and especially in South Asia, with the launch of Glycolic Bright. Garnier showed a significant acceleration in skincare, buoyed by the global success of Fast Bright and its Vitamin C Brightening Serum. Both Maybelline New York and NYX Professional Makeup revitalized the makeup category, with highly successful launches for Colossal Curl Bounce mascara and Bare With Me Concealer Serum.
The Luxe division reported like-for-like growth of 17.5% like-for-like and 25.1% reported—outperforming the global luxury beauty market. L’Oréal Luxe achieved balanced growth across geographic zones. In fact, by the end of the quarter, the division held a historic market share in North Asia. The division gained market share thanks to the strength of its brand portfolio. The couture brands Yves Saint Laurent, Giorgio Armani, Prada and Valentino grew significantly faster than their markets. Lancôme consolidated its leadership in mainland China and its position among the Top 3 in the West. Fragrance sales were driven by scents like Maison Margiela Replica and Armani Privé. In skincare, sales rose on the strength of ultra-premium brands like Lancôme Absolue and Helena Rubinstein. Newly-acquired brands Takami and Youth to the People showed promise, too. Shu Uemura and Urban Decay recorded strong growth in makeup.
Active division recorded strong growth of 18.0% like-for-like and 22.4% reported. The division gained market share in each zone. All Zones achieved double-digit growth, led by North America and in SAPMENA – SSA. Online sales growth continued while brick-and-mortar outlets saw a sharp upswing, driven by professional channels. Active brands built on their partnership with healthcare professionals. La Roche-Posay’s strong performance was fuelled by the ongoing success of Cicaplast and Effaclar and boosted by the launch of UVmune sun protection. CeraVe maintained outstanding momentum in all Zones. Growth at Vichy was fuelled by Dercos and a solid performance in sunscreens.
By region, European sales grew 16.4% like-for-like and 15.8% reported. The biggest gains came in the UK, Spain and Italy. European sales were diven by strong growth in the fragrance and makeup categories. Online sales declined slightly due to strong comps, but were up significantly vs. two years ago.
Sales in North America grew 12.6% like-for-like and 21.5% reported. By channel, e-commerce continued to grow and brick-and-mortar sales bounced back strongly, according to the company. Sales gains were recorded in all segments; with professional product sales rising sharply, especially in the SalonCentric channel.
Sales in North Asia rose 9.4% like-for-like and 18.0% reported. The gains came despite a wave of Covid-19 infections. L’Oréal Luxe achieved strong market-share gains. Consumer product sales rose on the strength of makeup and haircare sales.
Sales within the SAPMENA Zone grew 15.8% like-for-like and 18.7% reported. The company reported a strong recovery in South-East Asia and in South Asia, and strong performance in India and Gulf countries.
In Sub-Saharan Africa (SSA), L’Oréal recorded notable performance in South Africa and Kenya. Active Cosmetics achieved exceptional growth. L’Oréal Luxe posted outstanding growth, driven by ongoing momentum in both women’s and men’s fragrances. The Consumer Products Division experienced a clear recovery in makeup.
Finally, in Latin America, sales 22.2% like-for-like and 33.9% reported. L’Oréal recorded outstanding performance in Mexico and Chile, while Brazil saw strong growth. The Consumer Products division made significant market share gains. L’Oréal Luxe and Active Cosmetics reaffirmed their No.1 position. The Professional Products division also recorded a solid performance as consumers are returning to salons. L’Oréal enjoyed strong growth in all major categories, most notably in haircare, skincare and fragrances.