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L’Oreal shares fell as much as 8% on Friday as the cosmetics giant said it’s continuing to see pressure from mainland China and what it called the reset in travel spending.
The maker of its namesake brand
OR,
as well as Garnier and Lancome products said fourth-quarter comparable sales grew 6.9%, after 11% sales growth for the year. Analysts polled by Visible Alpha had expected 11.6% comparable sales growth for the year.
Its annual profit rose 8% to €6.18 billion ($6.66 billion), as sales rose to €41.18 billion from €38.26 billion. Analysts had expected a profit of €6.25 billion on sales of €41.49 billion.
Its outlook was vague, as L’Oreal said it remains optimistic on the outlook for the beauty market and its ability to outperform it.
JPMorgan kept a neutral rating on the company, noting it traded on 33 times estimated 2025 earnings excluding its stake in Sanofi.
