L'Oreal 1Q Sales Were in Line With Expectations; China Picked Up -- Earnings Review

By Giulia Petroni

L'Oreal SA reported on Thursday sales for the first quarter of 2020. Here's what you need to know.

SALES: The French cosmetics and consumer-products company reported sales at 7.22 billion euros ($7.89 billion) compared with EUR7.55 billion for the same period in a year earlier. On a like-for-like basis, sales decreased 4.8%. The company previously said it expected a 5% decline.

WHAT WE WATCHED:

-DIVISIONS: At a divisional level, the professional products business registered the worst performance with a 10.5% decline, like-for like. Luxe and consumer products followed, with a 9.3% and 3.6% decline, respectively. Active cosmetics instead delivered growth of 13%.

-CHINA: In spite of the lockdown impact on sales in February, the region registered 6.4% sales growth on a like-for-like basis in the first quarter. Management said China experienced a quick bounce back and is expected to have growth of between 5% and 10% in April, reaching a strong double-digit sales growth in the second quarter.

-E-COMMERCE: The internet became a significant distribution channel and growth driver amid the pandemic, limiting the impact of store closures. According to the company, it grew 53% and currently represents about 20% of sales.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

April 17, 2020 06:39 ET (10:39 GMT)

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