L'Oréal reported sales of $22.47 billion (€22.47 billion) in the first half of 2025, representing a 3.0% increase on a like-for-like basis and a 1.6% increase at published rates. The company's growth accelerated from 2.6% in the first quarter to 3.7% in the second quarter, after adjusting for IT transformation phasing. All divisions showed growth, with Professional Products leading the charge, and the Consumer Products Division showing initial signs of recovery in North America, particularly in makeup. Strongest growth categories were perfumes and haircare.
Geographically, emerging markets showed double-digit growth, and mainland China returned to growth. However, L'Oréal's sales disappointed due to a slowdown in Europe and North Asia. Despite this, European sales still rose by 2.7% on a like-for-like basis in the second quarter. The operating margin increased by 30 basis points to 21.1%, with all divisions recording a margin above 22%.
Analyst reactions, such as UBS upgrading L'Oréal to 'Buy' after reviewing LVMH's perfume and cosmetics division trends, suggest positive sentiment for the stock. Nicolas Hieronimus, L'Oréal's CEO, highlighted the company's continuous dynamism in emerging markets and rigorous cost management. The net income excluding non-recurring items amounted to $3.78 billion (€3,783.0 million).
