L’Oréal sales increased in the third quarter of 2023 despite muted activity in mainland China and a decline in Travel Retail in Asia.
The French beauty giant reported an 11% growth in like-for-like sales to €10bn for the most recent quarter ending 30 September.
L’Oréal's largest markets, Europe and North America, grew by 16% and 11% respectively, offsetting the 4.8% slump in North Asia.
Despite a "muted recovery", sales in mainland China grew by 7.7% and an uplift in tourism in Hong Kong helped mitigate lower than expected sales.
But L’Oréal's Asian Travel Retail took a hit because of Beijing's Government crackdown on 'daigou' – personal shoppers who buy luxury goods overseas and sell them for a profit in China.
The clampdown slowed L’Oréal's overall Luxe Division which rose by double digits in all regions except Travel Retail Asia.
"Despite the slower than expected recovery of the beauty market in mainland China and the reset in Asian Travel Retail, L’Oréal kept its double-digit pace," said Nicolas Hieronimus, CEO of L'Oréal.
L’Oréal's Dermatological Beauty category – formerly Active Cosmetics – was the top performing division and grew by 28% in Q3.
La Roche-Posay is the strongest performing brand within the portfolio which also includes CeraVe, Vichy, SkinCeuticals and SkinBetter.