The world's largest cosmetics company posted €12.15 billion in sales, well above analyst expectations of 3-4% growth
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A first-quarter 2026 sales report from L'Oréal showing €12.15 billion in revenue — a 7.6% like-for-like increase — sent the company's shares surging roughly 9%, a gain that, according to CNBC, would be its strongest single-day performance since November 2008.
The result far exceeded what analysts had anticipated — roughly 3-4% growth, according to CNBC. Excluding one-off items tied to the company's IT transformation, the adjusted like-for-like figure settled at 6.7%.
"We not only outperformed a beauty market that remains dynamic but accelerated our market share gains around the world," CEO Nicolas Hieronimus said in a statement. Despite "current geopolitical and macroeconomic uncertainties," he said the company expects "another year of growth in sales and profit."
Growth was broad-based, with all four of L'Oréal's divisions finishing the quarter in positive territory. The Professional Products unit was the standout, posting adjusted like-for-like expansion of 13.1%, followed by Dermatological Beauty — home to brands including La Roche-Posay and CeraVe — which advanced 10.2%. The Luxe division rose 5.6%, with China delivering high single-digit growth, the company said. Consumer Products, the largest division by sales, grew 4.1%.
Geographically, Europe was the top contributor by volume, with sales of €4.37 billion, up 5.5% on an adjusted like-for-like basis. North America grew 7.6% on the same measure. The SAPMENA-SSA region, which covers South Asia, the Middle East, Africa, and sub-Saharan Africa, was the fastest-growing region at 15.4%. North Asia grew 4.8%, driven by a mid-to-high single-digit expansion in China.
Fragrances and haircare were the standout product categories, the company said. E-commerce grew in double digits, with particularly strong momentum in emerging markets and Europe.
Reported sales growth of 3.6% was held back by a negative currency impact of 5.5%, driven by the euro's strength against the dollar. The exchange rate at March 31 stood at $1.1532 per euro, L'Oréal said.
The close of L'Oréal's €4 billion purchase of Kering Beauté — the fragrance and cosmetics arm of Gucci's parent company — also came on March 31, according to CNBC. The deal included the House of Creed and 50-year exclusive licenses for fragrances and beauty products under the Bottega Veneta and Balenciaga brands, the company said.
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