French beauty giant L’Oreal SA reported third-quarter sales that comfortably exceeded market forecasts, propelled by robust demand for premium skincare and professional salon hair products. The company announced Thursday that group sales climbed 7.7% on an adjusted like-for-like basis during the period, outpacing predictions from financial analysts.
Driving this growth were standout performances in specific divisions, most notably the professional products unit—which supplies hairdressers and beauty parlors—and the dermatological beauty business, both of which registered double-digit growth. L’Oreal’s stock has risen approximately 13% over the course of the year. Market analysts attribute this resilience to cash-strapped consumers prioritizing smaller indulgences, such as specialized skin repair products, even as the wider luxury-goods industry faces significant headwinds.
Regionally, the company recorded notable strength in North Asia, which encompasses China. Sales in the region rose 7.8% in the third quarter, beating analyst estimates by more than 3 percentage points. This performance stands in contrast to struggles experienced by other high-end brands in the same market; earlier on Thursday, Hermès International SCA reported flat sales across a comparable region as companies selling high-end fashion and leather goods encounter a tougher economic climate.
L’Oreal attributes its relative insulation from global economic turbulence to its diversified product model, which spans multiple price points. The company’s portfolio ranges from entry-level Garnier shampoos to high-end luxury creams from brands such as Aesop and SkinCeuticals.
Performance varied across emerging and developing markets. The region comprising India, South Africa, and the United Arab Emirates outperformed the rest of the company’s portfolio with double-digit sales growth that easily beat projections, helping to counterbalance weaker economic conditions and softer sales in Latin America.
