Latest news with #L'Oreal
CNBC
9 hours ago
- Business
- CNBC
European stocks set to open higher as investors digest earnings season
L'Oreal missed second-quarter sales forecasts, posting a 2.4% increase, as growth in Europe slowed more than expected. The cosmetics group saw a small rebound in the U.S. and China, which helped to offset weakness in other regions. However, the company said it will push for exemptions from U.S. tariffs, warning the EU-U.S. trade deal would be costly. — Domi Suskova Siemens Healthineers has topped revenue forecasts for the third quarter, posting 7.6% growth to 5.7 billion euros ($6.6 billion) year on year. The German medical technology group raised the midpoints of its outlook, even as CEO Bernd Montag warned that geopolitical volatility remains high. — Michael Considine Santander posted a record net profit in the second quarter, coming in at 3.4 billion euros ($3.9 billion) and topping expectations. The Spanish lender also unveiled a 1.7 billion euro share buyback program as it reiterated its full year outlook. — Michael Considine Good morning from London. There's just under an hour and a half to go until stocks begin trading, with the futures tied to the Stoxx Europe 600 index pointing to a gain of 0.2% when stock markets open. Regionally, the U.K.'s FTSE 100 and Germany's DAX are expected to rise 0.2% as well. Meanwhile, France CAC 40 index is set to be nearly flat, according to FactSet data. European companies including Santander , BASF , UBS , HSBC , Siemens Healthineers , Mercedes-Benz , L'Oreal and Kering have reported earnings. — Ganesh Rao
Business Times
16 hours ago
- Business
- Business Times
L'Oreal sales disappoint on slowdown in Europe, North Asia
[LONDON] L'Oreal's sales missed expectations in the second quarter as the French beauty-products company faced weaker demand in North Asia and a slowdown in Europe, its biggest market. Like-for-like sales rose 2.4 per cent, the maker of shampoo and cosmetics brands such as Garnier and Lancome said on Tuesday (Jul 29). Analysts had expected a 2.7 per cent gain. European sales rose 2.4 per cent, well below the 4.2 per cent analyst consensus. L'Oreal, along with the rest of the beauty industry, has been grappling with consumer uncertainty as US President Donald Trump imposes his tariff agenda, triggering fears of a hit to global economic growth. The sector is also facing slowing demand for skincare and makeup in Europe, particularly in France, David Hayes, equity analyst at Jefferies, said in a note last month. L'Oreal's American depositary receipts traded 1.6 per cent lower after the company's update. Shares of L'Oreal have rallied 9.3 per cent this year, though they are still almost 5 per cent lower than 12 months ago. North America sales rose 8.3 per cent, well above the consensus 4 per cent among analysts, with L'Oreal citing demand for haircare products including Kérastase shampoo. Market conditions showed 'clear signs of improvement', the company said. Meanwhile, China returned to growth in the second quarter, according to L'Oreal, though like-for-like sales in North Asia, which includes the mainland, fell 8.8 per cent, exceeding the 6 per cent drop analysts expected. L'Oreal has been contending with a sharp spending decline in China, where confidence has been hit by stagnant wage growth and high youth unemployment. Comparable sales in L'Oreal's dermatological beauty unit, which has been a driver of growth and includes labels such as CeraVe and La Roche-Posay, rose 3.5 per cent, below analyst estimates. BLOOMBERG
Reuters
16 hours ago
- Business
- Reuters
L'Oreal to push for tariff exemption as US market improves
PARIS, July 29 (Reuters) - L'Oreal < opens new tab warned on Tuesday that the EU's trade deal with the U.S. would be costly and that the cosmetics maker would push for tariff exemptions, even as it reported improving demand for its makeup and hair products in the key U.S. market. The French group, whose brands include Maybelline makeup and CeraVe skincare, posted a 2.4% rise in second-quarter sales, missing forecasts as growth in Europe slowed more than expected and demand at travel outlets in Asia was subdued. However, a recovery in the United States, a small rebound in China, and double-digit growth in emerging markets helped to offset the slower rise in Europe, which accounts for a third of sales but is benefiting less as inflation eases. Sales in April-June totalled 10.74 billion euros ($12.38 billion), up 2.4% on a like-for-like basis from a year earlier, but undershooting the 2.9% growth seen in a Visible Alpha consensus estimate cited by Jefferies. Underlying growth, after stripping out the impact of phasing in a new IT system, was 3.7%, the company said. "I don't think it's a good deal," CEO Nicolas Hieronimus told Reuters of Sunday's framework deal imposing a 15% tariff on U.S. imports of a range of EU goods, including cosmetics. "We're going to be writing to all the European leaders and negotiators to see whether there's a loophole we could benefit from, because in the end it's going to be costly," he said. L'Oreal, which imports around 30% of its U.S. sales, could raise prices and move more production to the country where it has four factories, but is waiting for further negotiations between U.S. President Donald Trump and other nations to be finalised before making decisions, he added. The company expects a 35 to 40 basis points hit to 2025 sales growth, he said. Jefferies analysts expect perfume sales in the U.S. to slow in the second half after tariffs are implemented, though Hieronimus said L'Oreal's fragrance sales were currently growing by double-digits, compared to 7% for the broader market. There is "some pricing power on fragrances, but we have to also consider the elasticity of the demand," he added. Growth in the U.S. picked up in the second quarter, thanks to "a bit less uncertainty", as well as new makeup and haircare launches, Hieronimus said. China, however, is "not really rebounding", although L'Oreal recorded sales growth there for the first time in a year. ($1 = 0.8674 euros)
Asharq Al-Awsat
19 hours ago
- Business
- Asharq Al-Awsat
L'Oreal Posts 2.4% Rise in Second-Quarter Sales
L'Oreal reported a 2.4% rise in second-quarter sales on Tuesday, missing forecasts as growth in Europe slowed more than expected and demand at travel outlets in Asia was subdued. The French cosmetics group, whose brands include Maybelline makeup and CeraVe skincare, said sales in April-June totaled 10.74 billion euros ($12.38 billion), up 2.4% on a like-for-like basis from a year earlier, but undershooting the 2.9% growth seen in a Visible Alpha consensus estimate cited by Jefferies. Underlying growth, after stripping out the impact of phasing in a new IT system, was 3.7%, the company said. Growth in the global cosmetics market has slowed sharply in recent quarters from the highs of a post-pandemic surge, when inflation contributed to rising sales values. The sector, and in particular perfume that is predominantly produced in Europe, is also facing higher costs from US President Donald Trump's tariffs. L'Oreal CEO Nicolas Hieronimus said he planned to continue to lobby for an exemption to US tariffs on European cosmetics, even after Brussels agreed to a deal on Sunday that imposes a 15% tariff on US imports of EU cosmetics. "I don't think it's a good deal," he told Reuters in an interview. "We're going to be writing to all the European leaders and negotiators to see whether there's a loophole we could benefit from, because in the end it's going to be costly," he said. L'Oreal, which imports around 30% of its US sales, could raise prices and move more production to the country where it has four factories, but is waiting for further negotiations between Trump and other nations to be finalized before making decisions, he added. Analysts at Jefferies expect perfume sales in the US to slow in the second half after companies hike prices, though Hieronimus said L'Oreal's fragrance sales were currently growing by double-digit figures, compared to 7% for the broader market. There is "some pricing power on fragrances, but we have to also consider the elasticity of the demand," he added.
Yahoo
a day ago
- Business
- Yahoo
L'Oreal to push for tariff exemption as US market improves
By Dominique Patton PARIS (Reuters) -L'Oreal warned on Tuesday that the EU's trade deal with the U.S. would be costly and that the cosmetics maker would push for tariff exemptions, even as it reported improving demand for its makeup and hair products in the key U.S. market. The French group, whose brands include Maybelline makeup and CeraVe skincare, posted a 2.4% rise in second-quarter sales, missing forecasts as growth in Europe slowed more than expected and demand at travel outlets in Asia was subdued. However, a recovery in the United States, a small rebound in China, and double-digit growth in emerging markets helped to offset the slower rise in Europe, which accounts for a third of sales but is benefiting less as inflation eases. Sales in April-June totalled 10.74 billion euros ($12.38 billion), up 2.4% on a like-for-like basis from a year earlier, but undershooting the 2.9% growth seen in a Visible Alpha consensus estimate cited by Jefferies. Underlying growth, after stripping out the impact of phasing in a new IT system, was 3.7%, the company said. "I don't think it's a good deal," CEO Nicolas Hieronimus told Reuters of Sunday's framework deal imposing a 15% tariff on U.S. imports of a range of EU goods, including cosmetics. "We're going to be writing to all the European leaders and negotiators to see whether there's a loophole we could benefit from, because in the end it's going to be costly," he said. L'Oreal, which imports around 30% of its U.S. sales, could raise prices and move more production to the country where it has four factories, but is waiting for further negotiations between U.S. President Donald Trump and other nations to be finalised before making decisions, he added. The company expects a 35 to 40 basis points hit to 2025 sales growth, he said. Jefferies analysts expect perfume sales in the U.S. to slow in the second half after tariffs are implemented, though Hieronimus said L'Oreal's fragrance sales were currently growing by double-digits, compared to 7% for the broader market. There is "some pricing power on fragrances, but we have to also consider the elasticity of the demand," he added. Growth in the U.S. picked up in the second quarter, thanks to "a bit less uncertainty", as well as new makeup and haircare launches, Hieronimus said. China, however, is "not really rebounding", although L'Oreal recorded sales growth there for the first time in a year. ($1 = 0.8674 euros)
