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LRLCF's 4Q24 results were disappointing, with organic sales growth slowing to 2.5% y/y, down from 6.9% in 4Q23, and gross margin declining. The luxury segment's growth struggles, particularly in North Asia, and a weak consumer spending environment in China are significant concerns. Broad-based demand weakness in mass beauty and active cosmetic segments, coupled with a poor macroeconomic environment, impairs LRLCF's growth prospects.
Investors interested in Cosmetics stocks are likely familiar with Helen of Troy (HELE) and L'Oreal SA (LRLCY). But which of these two stocks offers value investors a better bang for their buck right now?
Despite the disappointing results in China and a challenging market, L'Oréal managed to grow in all product divisions and once again achieved outperformance. The fundamentals remain rock solid and the company is excellently positioned to achieve sustainable growth for a very long time. The company fits well in a balanced dividend growth portfolio and currently offers a great mix of dividend yield, growth, safety, and consistency.
L'Oréal S.A. (OTCPK:LRLCF) Q4 2024 Earnings Conference Call February 7, 2025 3:00 AM ET Company Participants Nicolas Hieronimus - CEO Christophe Babule - CFO Myriam Cohen-Welgryn - President, L'Oréal Dermatological Beauty Omar Hajeri - President, Professional Products Cyril Chapuy - President, Luxe Alexis Perakis-Valat - President, Consumer Products Conference Call Participants Olivier Nicolai - Goldman Sachs Celine Pannuti - JPMorgan Jeremy Failko - HSBC Iain Simpson - Barclays Tom Sykes - Deutsche Bank Sarah Simon - Morgan Stanley Charles Scotti - Kepler Cheuvreux Rogerio Fujimori - Stifel Virginie Jacoberger - Les Echos Nicolas Hieronimus So good morning, again and welcome to this 2024 Annual Results Presentation.
L'Oreal SA (EPA: OR) seems to have had enough disappointments out of China. For future growth, the beauty giant now plans on turning to the United States which it called a “land of opportunity” on its earnings call last night.
The world's largest beauty group L'Oreal said Friday that it plans to become less dependent on the Chinese consumer for growth, instead targeting burgeoning opportunities in the U.S. market. "We see the U.S. as the land of opportunity," said CEO Nicolas Hieronimus during an earnings presentation following the release of the company's fourth-quarter results Thursday.
Cosmetics giant L'Oreal is upbeat on the United States for the year ahead, it said on Friday, even as its shares were dragged down by its slowest quarterly sales since the height of the pandemic, following weak Chinese demand.
French cosmetics giant L'Oreal has struck a partnership deal with Jacquemus that includes L'Oreal taking a minority stake in the independent fashion label, L'Oreal said on Friday.
French cosmetics giant L'Oreal on Thursday reported lower-than-expected fourth-quarter sales amid continued weakness in the Chinese beauty market and a slowdown in demand in the U.S. The world's largest beauty brand posted sales of 11.08 billion euros ($11.49 billion) in the three months to December, up 2.5% on a like-for-like basis and just shy of the 11.1 billion euros estimated.
L'Oréal will raise €3 billion by selling 29.6 million Sanofi shares back to Sanofi to cut its stake in the drugmaker. The French cosmetics giant, which also owns Garnier and Lancome, sold the shares back to Sanofi for €101.5 apiece as part of an effort to "optimize" its balance sheet after a recent acquisition spree.