PARIS — L’Oréal said Thursday that first-quarter sales gained 5.1 percent, driven partially by business from its consumer products, luxe and active cosmetics divisions. The French beauty giant also confirmed guidance for 2013.
Company revenues in the three months ended March 31 were 5.93 billion euros, or $7.83 billion at average exchange for the period. On a like-for-like basis, they grew 5.5 percent and, excluding currency fluctuations, revenues advanced 6.5 percent.
The results beat analysts’ estimates.
“Even though [L’Oréal’s] growth remained below double digits, New Markets — up 9.4 percent — saw its biggest growth in a year and second-best growth in two years,” stated initial perspectives published by Andrew Wood, an analyst at Sanford C. Bernstein & Co. “Even Western Europe and North America slightly outperformed expectations…and the total was dragged down by disappointing sales at The Body Shop and surprisingly negative sales in Dermatology, under pressure from generics in Europe and other factors. Within cosmetics, professional was noteworthy for the lack of growth…but consumer, luxe and active more than compensated.”
L’Oréal’s luxe division registered sales of 1.42 billion euros, or $1.88 billion, up 8.1 percent. Revenues from active cosmetics gained 6.2 percent to 497.6 million euros, or $657.2 million. Consumer products’ sales rose 5.5 percent to 2.92 billion euros, or $3.86 billion, while professional products’ revenues declined 0.4 percent to 752.6 million euros, or $994 million.
The Body Shop posted revenues of 181.9 million euros, or $240.3 million, a 0.8 percent gain. And L’Oréal’s Dermatology branch generated sales of 156.7 million euros, or $207 million, a 2.1 percent rise.
Business in North America advanced 8.5 percent to 1.37 billion euros, or $1.81 billion. New markets’ revenues grew 6.7 percent to 2.23 billion euros, or $2.95 billion. Sales in Western Europe increased 1.9 percent to 1.99 billion euros, or $2.63 billion.
“We are off to a very solid start,” said Jean-Paul Agon, L’Oréal chairman and chief executive officer, during a conference call with financial analysts and journalists on Thursday evening. “And we think that we should have again a solid year.”
He said L’Oréal expects to outperform the beauty market and improve its results in 2013.
Agon also noted a slight deceleration in the worldwide business so far this year.
“It seems that the market is slowing down a little bit, so it’s maybe going to be more something like 4 percent [growth in 2013 rather] than 4.5 [percent in 2012],” he said, adding that doesn’t mean L’Oréal is losing velocity. “On the contrary, what we are seeing in this first quarter is really encouraging.… Slowing down of the market doesn’t mean slowing down for us.”
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion