L'Oreal's Online Sales Grow in China Despite Coronavirus

By Giulia Petroni

L'Oreal's online sales of makeup and skincare products in China are currently stronger than a year ago in spite of the coronavirus epidemic, Chief Executive Jean-Paul Agon said Friday.

The virus is expected to have a temporary impact on beauty products consumption in the region due to closed stores and travel bans, but the slowdown is being offset by a very advanced e-commerce system, Mr. Agon said at the Consumer Analyst Group of New York Conference.

"Sales of beauty products on e-commerce are stronger than last year," he said, adding that companies such as Alibaba Group Holding Ltd., JD.com, Inc. and Vipshop Holdings Ltd. are overcoming delivery issues in some parts of the country.

E-commerce represented almost 50% of L'Oreal's business in China last year, the CEO said, and beauty is believed to be the best-performing category in the region.

L'Oreal posted fourth-quarter sales of 7.88 billion euros ($8.51 billion), up 11% from the same period the previous year and rising 9.6% on a like-for-like basis.

The company is confident it can outperform the beauty market and grow its profits in 2020, Mr. Agon said.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

February 21, 2020 12:30 ET (17:30 GMT)

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