L’Oréal Reports Q1 Sales Growth Despite US Decline in Makeup Demand

THE WHAT? L’Oréal reported a 3.5% rise in first-quarter like-for-like sales, supported by strong European demand for skin care and fragrance, despite a decline in North American revenue.

THE DETAILS Sales reached €11.7 billion (US$13.3 billion) for the three months ending March 2025. Growth was boosted by a 2-point benefit from early shipments to China ahead of an IT system update. Excluding that, underlying growth stood at 1.5%, above analyst expectations of 1.1%. North America sales fell 3.8%—a reversal from 1.4% growth the previous quarter—driven by weaker demand in the makeup category. CEO Nicolas Hieronimus noted deteriorating US consumer sentiment and trade pressures as key challenges. Around 30% of L’Oréal’s US-sold products are imported, and the company is preparing for tariff impacts in the second half of the year by raising prices and building inventory.

Meanwhile, performance in China was stable, showing improvement from prior quarters. European markets were the strongest contributors, with skin care and fragrance leading the category growth.

THE WHY? While L’Oréal has consistently outperformed the global cosmetics market in recent years, Q1 results reveal shifting dynamics. North America, a key growth focus for 2025, is showing signs of consumer pullback—particularly in colour cosmetics—due to economic uncertainty and trade tensions. The company’s performance in Europe and a stabilising trend in China provided offsetting strength in personal care categories.

The post L’Oréal Reports Q1 Sales Growth Despite US Decline in Makeup Demand appeared first on Global Cosmetics News.