Latest news with #DominiquePatton
Business of Fashion
30-06-2025
- Business
- Business of Fashion
L'Oréal to Acquire Hair-Care Brand Color Wow
French cosmetics giant L'Oréal said on Monday it had signed an agreement to acquire haircare brand Color Wow, as it seeks to tap rapid growth in premium hair products. Hair care was the second fastest-growing category at L'Oréal last year after fragrances, driven by new launches for specific hair types and conditions. The company said earlier this year was targeting more innovation and growth in premium hair products, which it sells both online and in salons. Color Wow, based in the US and Britain, makes products for frizz control and curly hair. Terms of the deal were not disclosed. By Makini Brice and Dominique Patton; Editor: Susan Fenton Learn more: L'Oréal to Acquire British Skincare Brand Medik8 The world's biggest beauty company has acquired a majority stake in the English premium skin care line known for its science-backed serums.
Yahoo
08-02-2025
- Business
- Yahoo
L'Oreal CEO bullish on US as China sales stay weak
By Dominique Patton PARIS (Reuters) -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. L'Oreal has been popular for years among investors for outperforming peers, but persistently weak demand for consumer goods in China, where it has a significant market share, has affected its business. The Paris-listed shares were down by over 4% around 0912 GMT, as investors were concerned that sales also stayed below expectations in North America, as well as in the firm's luxury segment. Speaking to analysts, Chief Executive Nicolas Hieronimus said he was "bullish" L'Oreal could increase its presence in the United States, which the luxury industry expects to be the main growth engine for the foreseeable future. "We see the potential. We have the brands," he said, adding that the company was under-exposed in the country compared to its market share in other regions. "Consumption of particularly premium goods in U.S. will be dynamic," he said. Hieronimus added he wanted "to enter new territories", citing beauty supplements as a promising opportunity. He said the company was working with external manufacturers in the sector, but not looking at acquisitions. L'Oreal has taken stakes in some beauty clinics in China and North America to observe and understand the medical aesthetics market, he said. Last year, it acquired a stake in dermatology company Galderma. The company that makes products including Maybelline mascara, Lancome face cream and AirLight hairdryers, invests around 3% of its annual revenue, or 1.53 billion euros ($1.59 billion), in research and development. The 2.5% rise in fourth-quarter sales, reported after the market close on Thursday, was a slowdown from the 3.4% rise in the third quarter, and the slowest quarterly growth since 2020. Analysts had expected quarterly sales to rise more than 4%. Revenues in North Asia, which includes China, were down by 3.6%, after a 6.5% decline in the prior period. Fourth-quarter sales also grew more slowly than expected in North America, rising by 1.4%, down from growth of 5.2% in the third quarter while the luxe division, which markets the Valentino and Yves Saint Laurent perfumes, also missed expectations. Barclays analysts said the persistent weak sales at a company known for its operational excellence caused some uncertainty. "We think investors will remain nervous around whether this is symptomatic of deeper structural problems until growth inflects," the note added. Separately, L'Oreal said on Friday it struck a deal to produce beauty products for the popular fashion label Jacquemus which also includes taking a minority stake. Proceeds from selling a 2.3% stake in Sanofi back to the French pharma company this month will give L'Oreal additional financial firepower for acquisitions, Finance chief Christophe Babule said. ($1 = 0.9621 euros) Sign in to access your portfolio
Yahoo
08-02-2025
- Business
- Yahoo
L'Oreal quarterly sales grow at slowest since the pandemic
By Dominique Patton PARIS (Reuters) - French cosmetics group L'Oreal reported on Thursday the slowest quarterly rise in growth since the height of the pandemic, missing expectations, as Chinese demand stayed weak and growth in North America slowed. The figures conclude a challenging year as the Chinese economy failed to gain traction and inflation in the United States dented demand for skincare and makeup in two of the company's biggest markets. The 2.5% rise in fourth-quarter sales was a slowdown from the 3.4% rise in the third quarter, and the slowest quarterly growth since 2020. The owner of brands from Maybelline mascara to Lancome facecream said sales for the three months to end-December were 11.08 billion euros ($11.49 billion), up 2.5% on a like-for-like basis, versus expectations for a 4.4% rise, according to a consensus compiled by LSEG. The company had said in October fourth-quarter sales growth would be comparable to the prior quarter's. "We expect the shares to react negatively tomorrow, and call commentary to remain cautious on both visibility and the pace of growth recovery," analysts at Jefferies said. Paris-based L'Oreal lost market share in China's mass market last year to domestic rivals such as Proya, analysts say, and its CeraVe and other products recommended by dermatologists face growing competition in developed markets. Fourth-quarter sales grew 1.4% in North America, much less than the 5.2% reported in the third quarter, and well below analyst expectations. In North Asia, revenues were down by 3.6%, after a 6.5% decline in the prior period. The Luxe division, which markets the Valentino and Yves Saint Laurent perfumes, grew 1%, much slower than a consensus forecast of 5%, driven by weakness in North Asia. SINGLES DAY China accounts for a large share of North Asian sales, and has a bigger than usual impact in the fourth quarter due to its online shopping festival, known as Singles Day. Expectations for the event were low this year, and analysts said heavy discounts to stimulate shopping could have meant customers overbought and then returned items. L'Oreal has not commented on returns. Weakness in China has had a broad effect on companies that depend on discretionary spending. Luxury bellwether LVMH last week reported lower than expected perfume sales for the quarter. Other large companies, including spirits maker Pernod Ricard have said they see little sign of a pick-up in consumer demand in China, the world's second-biggest economy, adding to a gloomy outlook for 2025 as executives try to navigate growing global trade tensions. L'Oreal said mainland China sales declined by low-single digits for the full year of 2024, implying a low-single digit decline in the fourth quarter, said Jefferies. The "Chinese ecosystem remained challenging", L'Oreal said in a statement, but added the company outperformed on the global market with growth of 5.1% over the full year. "We remain optimistic about the outlook for the global beauty market, and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profit," it said. ($1 = 0.9641 euros) (This story has been corrected to say revenues in North Asia were down by 3.6%, not 3.4%, in paragraph 8) Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Pernod cuts sales outlook as China's tariffs and weak economy bite
By Dominique Patton and Emma Rumney PARIS/LONDON (Reuters) -Pernod Ricard cut its sales forecasts for 2025 and beyond on Thursday as tariffs, especially affecting its Martell cognac brand in China, weigh on the French spirits maker during an already tough time for the industry. The world's second-largest western spirits maker pulled forward its half-year results to report steep sales declines of 7% and 25% in the U.S. and China respectively, warning of a low single-digit sales decline this year, having previously expected modest growth. Shares in the maker of Absolut vodka and Mumm champagne, however, rose 3%, with analysts saying the results and outlook were in line with their expectations. Pernod's deteriorating outlook was largely attributed to Chinese duties on cognac, which Beijing imposed in response to European Union tariffs on electric vehicle imports, as well as weakness in Asia travel retail, exacerbated by the political situation in South Korea. China remained very weak, it said, with early signs of a very soft Chinese New Year and a significant drop in gifting. The company now also faces the threat of U.S. tariffs on Mexico, Canada and the European Union, which would affect products ranging from Irish and Canadian whiskies like Jameson to tequila and agave brands like Codigo 1530. Pernod said such intense geopolitical uncertainties forced it to revisit its guidance. It said 2026 would be a transition year and guided for between 3% and 6% organic sales growth for 2027-2029 compared to 4% to 7% previously. Diageo, the world's top spirits maker, withdrew its medium-term sales goals entirely earlier this week after facing pressure from investors who saw them as unrealistic. "It is helpful for Pernod to attempt to quantify the next few years however many questions remain," said Laurence Whyatt, analyst at Barclays, saying tariffs in particular clouded the outlook for its upcoming financial year starting July 1. Sign in to access your portfolio
