L’Oreal SA sales rose as European customers spent more on lipstick and skincare, offsetting a tepid recovery in the region that includes China.
Second-quarter sales were up 13.7% on a comparable basis, led by Europe and Latin America, the French cosmetics company said in a statement Thursday. Analysts had expected a gain of 11.7%. Growth in North America as well as North Asia missed estimates, though.
Analysts had warned that L’Oreal could see a slower-than-expected recovery from China after the country’s on-and-off lockdowns last year weighed on demand.
Read more: CHINA INSIGHT: Consumption Dash - Missing ‘Revenge Spending’
The leader in beauty products still saw single-digit growth at its luxury division, which includes Helena Rubinstein as well as Lancome skincare products. This division had surpassed the consumer products unit in revenue in 2021 and last year. So far this year, the mainstream unit has come back on top, as customers trade down to cheaper products amid high inflation.
Read more: US Consumer Weakness Erodes Sales at LVMH, BAT, Unilever
