The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Sales growth at Maybelline maker L'Oréal was faster than expected in the third quarter, as momentum remained strong in across Asia, its number one market, despite turmoil in Hong Kong.
Luxury goods companies and retailers have felt the pinch following months of street protests in Hong Kong which put off visitors and forced shops to temporarily shut their doors, though some are making up for lost business in mainland China.
L'Oréal, which has done well in recent years thanks in large part to its high-end cosmetics brands like Lancôme, said on Tuesday that third quarter sales were up 11 percent to €7.18 billion ($7.98 billion).
On a like-for-like basis, which strips out currency swings and acquisitions, revenues rose 7.8 percent, largely surpassing the 6.3 percent increase expected by analysts and accelerating from the 6.8 percent growth notched up a quarter earlier.
By Camille Raynaud and Sarah White; editor: Maya Nikolaeva.
By selling existing formulas under their own name, retailers can tap into the lucrative beauty market without investing in custom formulations. But that doesn’t mean the private label model is an easy win.
The San Francisco-based company is hoping to tap growing consumer demand for financing for cosmetic treatments among other services.
Once thought of as long-term disruptors who would change the way we shop forever, multi-brand online retailers that sell cosmetics, skincare, fragrance and more are facing multiple headwinds.
Prestige makeup is fashion’s category expansion du jour. But even the market’s most powerful players could learn a thing or two from its celebrity-backed competition.