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 — L'Oréal SA reported second-quarter sales that missed analysts' estimates as rising demand for its beauty products in North America was offset by worsening conditions in its home market of France.
Sales excluding acquisitions, disposals and currency swings grew 4.3 percent, Paris-based L’Oréal said Thursday after European markets closed. Analysts predicted 4.6 percent, according to the median of 17 estimates compiled by Bloomberg. Sales in Western Europe rose 1.4 percent, missing analysts’ estimates.
Western Europe “is being held back by a very difficult market in France,” L’Oréal said.
The maker of Maybelline and Urban Decay makeup is looking to make acquisitions and roll out more premium-priced products in the US to help spur growth at a time when it is facing a slowdown in Hong Kong and Latin America. Last week the company agreed to acquire IT Cosmetics for $1.2 billion in its largest acquisition in eight years, adding more than 300 skin-care and makeup products to its lineup. Last month, it bought niche perfume maker Atelier Cologne.
ADVERTISEMENT
The company reiterated its full-year forecast to outperform the broader market.
By Matthew Boyle; editors: Matthew Boyle and Thomas Mulier.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.