"We need new stuff to get consumers excited:" L'Oréal CEO on Q3 sales results



We need new stuff to get consumers excited L Oreal CEO on Q3 sales results

L’Oréal Group reported that its sales had risen by 3.4% on a like-for-like basis for the third quarter of 2024 (1 July – 30 September) reaching €10,28bn – yet this was lower than what had been anticipated for the cosmetics firm.  

Sales down in derma division

Sales in the North Asia region, which mainly includes China, had declined by 6.5% for the third quarter, dropping from a decline of 2.4% in the second quarter of this year.

This region has previously accounted for around a quarter of all sales for the group, but post-Covid, consumer spending has dropped due to high unemployment and a property crisis in China.

Last week when LVMH – another French luxury business – shared its financial results for the same quarter, it also said that consumer confidence in China was at an all-time low.

In a conference call about the third-quarter results, CEO Nicolas Hieronimus noted that the company was still outperforming a “very negative market,” but that this was “not good enough.”

“The less expected, or should I say worse than expected, turbulences were in North Asia,” he said.

“In the Chinese ecosystem where markets turned even more negative, particularly in luxury, both in the domestic and in travel retail where traffic did not convert into purchases.”

“We were encouraged recently by the government’s stimulus measures and hope that they will result in a gradual pickup in consumer confidence,” he continued.  

Sales down in derma division

Hieronimus also noted the surprising drop in sales for its Dermatological Beauty division, as it faced a reduced demand for sun care and derma skin care products. This had been the fastest-growing division, but had slowed to 0.8%, compared with 10.8% in the second quarter.



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