L’Oreal, the largest beauty company in the world, is hopeful for a swift rebound once lockdown measures are lifted in Europe and the US. The company is confident that consumers will flock back to hair salons, which will significantly boost their business. In China, where restrictions have eased and online sales have surged, L’Oreal has already witnessed a bounce-back in beauty sales. While makeup sales have been adversely affected by the confinement measures, skin and hair-care products have performed exceptionally well. Jean-Paul Agon, the CEO of L’Oreal, anticipates a return to normal consumption levels once stores reopen.
Despite reporting a 4.8% decline in comparable sales for the first quarter, L’Oreal maintains a positive outlook. The company’s success in China, its largest market, has led it to project a revenue increase of over 10% for the April to June period. L’Oreal also foresees a strong demand for its professional hair care products later in the year, as many consumers express a desire to fix their hair color.
In terms of the beauty industry as a whole, a recent survey reveals that people are most eager to get haircuts and eyebrow waxing done as soon as lockdowns are lifted. To compensate for lost business, cosmetics companies have been focusing on increasing online sales. Zalando, for instance, has witnessed a significant surge in orders for skin care, nail care, hair care, and beauty accessories. However, not all products are experiencing the same level of demand. Luxury cosmetics brands such as Estee Lauder and LVMH have observed a decline in sales, whereas L’Oreal, which also sells more affordable ranges in supermarkets, is better positioned in the market.
L’Oreal’s first-quarter sales reached 7.2 billion euros ($7.8 billion), signaling a 4.3% drop on a reported basis compared to the previous quarter. The company has postponed some product launches initially planned for the second quarter and has temporarily reduced advertising spending in order to manage costs. While analysts predict a further decline in sales for the second quarter due to ongoing closures in Europe and the US, L’Oreal remains optimistic about its recovery.
– For more information on L’Oreal and their products, visit the official L’Oreal website here.
– To stay updated on the latest beauty trends and news, check out this beauty industry news website here.