L’Oréal has reported an uptick in sales in Q2 but narrowly missed analyst expectations for the quarter.
The French beauty giant saw like-for-like sales increase 2.4% to €10.74bn, bolstered by fragrance and hair care within its Professional Products and Consumer channels.
This fell short of investment research platform Visible Alpha's estimations of 2.9% growth for the quarter, which was cited by banking firm Jefferies.
On a reported basis, total sales fell 1.3% during the three months ended June 2025, as a slowdown in demand in Europe impacted the group’s results.
L’Oréal’s North Asia division also struggled in Q2, declining 8.8% to €2.44bn, although this was offset by a rebound in mainland China, which has returned to growth.
Despite missing analyst predictions, the Q2 results contributed to a half-year sales boost of 3% to €22.4bn.
Nicolas Hieronimus, CEO of L'Oréal, said: “As anticipated, L’Oréal’s like-for-like growth accelerated between [the] first and second quarter.
“The ongoing strength in emerging markets, the slight rebound in mainland China and the gradual recovery in North America more than offset the expected slowdown in Europe, once again validating our multi-polar model.”
Professional Products was the strongest performing category in Q2, with 11.5% sales growth fueled by premium hair care.
Hair care brand Kérastase was hailed for its performance, with an uplift in demand for its product Genesis by Kérastase.
Metal Detox by L’Oréal Professionnel, Acidic Bonding Concentrate by hair bond repair brand Redken and Food for Soft by hair businesses Matrix also supported growth.
L’Oréal also signed an agreement in June 2025 to acquire Color Wow to further strengthen its foothold in the premium hair care and styling categories.
Consumer Products, meanwhile, benefited from hair care as well as its skin care offering through the “early success” of Garnier’s Pimple Patch.
Luxe product division sales dropped by 1.6%, while Dermatological Beauty increased by 3.5% to €1.7bn – the latter being propelled by skin care brand CeraVe.
CeraVe continued to gain share in emerging markets as well as mainland China, and is regaining traction in the US, according to L’Oréal.
L’Oréal Groupe also confirmed in June that it is acquiring a majority stake in British premium skin care brand Medik8, following months of speculation.
The vitamin A-focused beauty brand will sit within the French giant’s Luxe Division.
Hieronimus added: “The acceleration was supported by a gradual improvement in global beauty market growth, which we expect to continue in the next two quarters.
“And it was boosted by the early success of our Beauty Stimulus Plan – which will become ever more impactful as we continue to roll-out our most recent blockbusters and as we have many exciting launches in the second half of the year.”