On Friday, shares in L’Oreal SA (EPA:OREP) fell after the company said that COVID-19 lockdowns in China had impacted performance at its vital luxury products division in Q3.
L’Oreal Luxe includes well-known brands like Kiehl’s skincare and Lancôme fragrances. Sales at L’Oreal Luxe increased by 4.6 per cent like-for-like during the period to €3.61B, below consensus estimates of 9 per cent.

The French personal care company said that returns at the business hit by repeated pandemic restrictions in China over the summer. The relocation of L’Oreal’s Asian travel retail unit and difficulties in sourcing fragrance bottles also affected returns.

On a group-wide basis, revenue rose by 9.1 per cent like-for-like to €9.58B, above estimates of 8.3 per cent organic sales growth, thanks to solid results for L’Oreal’s active cosmetics and consumer products businesses.

Reportedly, the demand for beauty supplies surged, especially in Germany, Spain and Britain. The company remained confident in its outlook for the worldwide beauty market, adding that it plans to post growth in sales and profits in 2022.