L’Oreal shares slide as cosmetics giant cites weakness in China



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L’Oreal shares fell as much as 8% on Friday as the cosmetics giant said it’s continuing to see pressure from mainland China and what it called the reset in travel spending.

The maker of its namesake brand
OR,
-7.09%
as well as Garnier and Lancome products said fourth-quarter comparable sales grew 6.9%, after 11% sales growth for the year. Analysts polled by Visible Alpha had expected 11.6% comparable sales growth for the year.

Its annnual profit rose 8% to €6.18 billion ($6.66 billion), as sales rose to €41.18 billion from €38.26 billion. Analysts had expected a profit of €6.25 billion on sales of €41.49 billion.

Its outlook was vague, as L’Oreal said it remains optimistic on the outlook for the beauty market and its ability to outperform it.

JPMorgan kept a neutral rating on the company, noting it traded on 33 times estimated 2025 earnings excluding its stake in Sanofi.



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