L’Oréal’s Luxury Division Emerges as Top Revenue Generator, Showcasing Impressive Growth

L’Oréal, the global beauty giant, has seen its luxury division rise to the top as its largest revenue generator. Excitingly, the division experienced a remarkable 20.9% growth in like-for-like terms in 2021, resulting in a revenue of €12.34 billion. This impressive performance places the Luxe division, home to renowned brands such as Lancôme, Armani, and Yves Saint Laurent, at the forefront of L’Oréal’s revenue ranking.

Surpassing the consumer goods division, which generated a revenue of €12.23 billion, growing by 5.6%, L’Oréal Luxe demonstrates its dominance in the industry. However, it’s important to note that the consumer goods division, housing popular brands like Garnier and Maybelline, has yet to fully recover from the impact of the pandemic and has not returned to its pre-pandemic revenue levels. Nevertheless, its leading brand, L’Oréal Paris, continues to shine, with a stunning revenue of €6 billion alone.

L’Oréal Luxe’s success in 2021 can be attributed to its effective utilization of distribution channels, achieving balanced growth in both online and physical stores. This strategy allowed the division to capitalize on the recovery of the fragrance market, with its leading perfumes, including Yves Saint Laurent’s Libre, performing exceptionally well. Additionally, the successful launch of new fragrances, such as Alien Goddess by Mugler, further contributed to the division’s strong performance.

The luxury division also saw significant growth in the booming premium skincare sector, led by iconic brands Lancôme and Helena Rubinstein. A discreet relaunch of Helena Rubinstein in France played a crucial role in the division’s success. However, makeup products faced challenges due to the ongoing pandemic, remote working trends, and the widespread use of masks. Despite these obstacles, Lancôme and Shu Uemura emerged as top performers in the makeup category.

In addition to organic growth, L’Oréal Luxe expanded its portfolio through the strategic acquisition of US skincare brand Youth to the People. This move allowed the division to gain substantial market share in northern Asia and achieve highly satisfactory results in Europe. Furthermore, the division strengthened its presence in North America through a restructuring of its distribution organization.

Despite the struggles faced by the retail sector during the Covid-19 pandemic, L’Oréal’s global sales reached an impressive €32.28 billion in 2021. Comparing these figures to 2019, the company experienced an 8% revenue growth, and compared to 2020, a remarkable 15.3% revenue growth. These numbers demonstrate L’Oréal’s resilience and adaptability in the face of evolving market conditions.

With the luxury division leading in revenue generation, L’Oréal’s strategy to prioritize and invest in its premium brands has proven to be successful. As the company continues to navigate the challenges brought on by the pandemic, L’Oréal’s luxury division remains a key driver of its overall growth and success in the beauty industry.

Read more:
– L’Oréal Luxe: https://www.loreal.com/en/brands/l-oreal-luxe/
– Yves Saint Laurent Beauty: https://www.yslbeautyus.com/