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PARIS — French beauty giant L’Oréal’s third-quarter sales rose 7 percent, to 3.852 billion euros, or $4.829 billion at current exchange, year-on-year.
For the nine months ended Sept. 30, the company’s revenues reached 11.6 billion, an 8.3 percent gain over the prior-year period. Currency fluctuations positively affected L’Oréal’s sales by 0.9 percent, and the net impact of changes in consolidation — mainly resulting from the acquisition of the Body Shop, a business consolidated into L’Oréal starting July 1 — was plus 1.8 percent.
At comparable group structure and constant exchange rates, L’Oréal’s sales rose 5.6 percent.
“At the end of September, we have achieved a strong increase in sales, in line with our projections, with Western Europe confirming its sustained growth and with rapid expansion in the rest of the world, thanks to the strong advances made in the third quarter in Latin America, Eastern Europe and Asia, not including Japan,” Jean-Paul Agon, L’Oréal’s chief executive officer, said in a statement. “In North America, our businesses have, on the whole, improved both sell-through and market share in an environment which, as we had predicted, remains affected by consolidation in the retail sector.
“The Body Shop, part of the group since July 1, is a very promising acquisition and is strengthening the group sales growth,” he continued. “All these factors, together with our confidence in the prospects for the fourth quarter, mean that we can confirm our sales and profit targets for 2006.”
As reported, L’Oréal aims to end this year with double-digit earnings-per-share growth and sales up 6 percent.
This story first appeared in the October 13, 2006 issue of WWD. Subscribe Today.