L’Oreal seeks us ‘land of opportunity’ as China disappoints

The world’s largest beauty group L’Oreal On Friday, he said he plans to be less dependent on the Chinese consumer for growth, instead of aiming opportunities for flourishing in the US market.

“We see the United States as the land of opportunity,” said CEO Nicolas Harioimus during a profit presentation after the company’s launch Fourth quarter results Thursday.

Speaking during a question and answers session, Harióimus described China as “the great stranger” after the company reported a continuous decrease in the quarterly sales of North Asia in the middle of a “challenging” Chinese ecosystem.

North Asia sales fell 3.6% on a similar base in the fourth quarter, a more pronounced decrease than the 2.4% contraction prognosis in a consensus estimate cited by Citi Bank.

Until 2024, L’Oreal market growth in Continental China decreased around 4%, while retail travel in Asia fell approximately 10%, according to the data that the company shared on Friday. The beauty group added that China now represents 17% of total sales, a remarkable reduction in recent years.

“The great unknown is China,” HariOnimus continued. “We have counted in our own calculations for a flat market for China. We believe that retail travel will remain difficult and only good surprises of there can arise.”

The company, whose brands include Lancôme, Maybelline and Kiehl’s, has been fighting a demand for weaker consumers in the last quarters, particularly in the Chinese key market, a trend that has also harassed high -end luxury companies.

It occurs when sales of the fourth quarter increased in all regions to 11.08 billion euros ($ 11.49 billion), 2.5% higher in a similar way and just less than 11.1 billion euros estimated by analysts in analysts An LSEG survey.

US sales increased 1.4% similarly, below the growth of 5.2% in the previous quarter and the weakest among all other regions.

However, Harióimus said he was optimistic about opportunities in the US market, particularly in its Latin and growing Latin and multi -regular populations, which he would lead to “a variety of new beauty needs.”

He also pointed out the wealth of the American consumer, who said that “he would continue to drive the growth of our luxury division.”

“Today, we are quite optimistic in the United States, insurance of emerging markets, stable in our strength in Europe and a large question sign in China,” he said.

Harioimus did not evaluate the implications of the new US policies around trade and immigration under the administration of President Donald Trump.

Answering a separate question about the potential impact of US rates, which the economist warns flame inflation And suppressing consumer spending both in the United States and in the markets directed and China, Hieronimus said there were “many unknowns” in the macroeconomic environment.

Sales from all over L’Oreal increased 5.1% to 43.48 billion euros compared to the prognosis of 43.33 billion euros, the company reported Thursday.

The shares fell 4.5% on Friday when investors digest the results, extending a decrease of more than 20% last year.