L'Oreal shares slumped on Wednesday as the chief executive of the highly valued cosmetics company didn't express huge confidence over upcoming sales.
The cosmetics company reported $11.98 billion in third-quarter sales, which underwhelmed expectations.
L'Oréal S.A. (OTCPK:LRLCF) H1 2025 Earnings Call July 30, 2025 3:00 AM ET Company Participants Christophe Babule - Executive VP & CFO Eva Quiroga-Thiele - Head of Investor Relations Laurent Schmitt - President & CEO Nicolas Hieronimus - CEO & Director Conference Call Participants Ashley Wallace - BofA Securities, Research Division Callum Elliott - Sanford C.
I maintain a hold rating on L'Oreal as recovery in China and the US is offset by persistent headwinds in Luxe and dermatological beauty divisions. LRLCF's 2Q25 results showed mixed performance: strong North America and China rebounds, but Luxe sales declined and dermatological beauty growth slowed sharply. US tariffs on EU beauty imports introduce a new risk, particularly impacting high-margin luxury and fragrance segments and adding pressure to near-term profitability.
L'Oréal S.A. is one of the world's leading consumer staples companies thanks to its diversified portfolio of beauty brands. It is the beauty company that spends the most on R&D; L'Oreal continuously acquires majority stakes in innovative start-ups to gain their know-how. Mid-high single digit growth, strong and growing profit margins, and reasonable price multiples make LRLCF stock a buy.
The companies will initially collaborate in two areas: L'Oréal's AI-spun ads and product recommendations.
L'Oréal S.A. (OTCPK:LRLCF) Q1 2025 Sales/ Trading Statement Call April 17, 2025 12:30 PM ET Company Participants Eva Quiroga - Head of IR Nicolas Hieronimus - CEO Christophe Babule - CFO Laurent Schmitt - Global Head of Corporate Finance and Financial Communications Conference Call Participants Guillaume Delmas - UBS Charles Scotti - Kepler Cheuvreux Celine Pannuti - JPMorgan Jeremy Failko - HSBC Olivier Nicolai - Goldman Sachs Sarah Simon - Morgan Stanley Tom Sykes - Deutsche Bank Ashley Wallace - Bank of America Operator Welcome to the conference call regarding L'Oreal sales at 31st of March 2025.
The world's largest beauty company, L'Oreal, has invested $160 million to revamp its North America Research & Innovation Center, its largest investment in R&I in its 110 years history, located in Clark, New Jersey.
Hieronimus said he is "not overly concerned" over the impact of White House tariffs on L'Oreal, as the group produces most of its goods sold in the U.S. in the North American country. Some of the cosmetics titan's luxury products, such as fragrances, are nevertheless exported from Europe.
Makeup company L'Oréal S.A. issued a recall on all lots of acne cream Effaclar Duo due to concern that benzene, a known carcinogen, is in the product.
L'Oreal CEO Nicolas Hieronimus discusses the U.S. market, tariffs, European competitiveness and Chinese demand in an exclusive interview at the firm's newly opened R&I facility in New Jersey.
L'Oreal CEO Nicolas Hieronimus discusses the company's $160 million investment in its new U.S. R&I facility in an exclusive interview with CNBC.