PARIS — L’Oréal said Wednesday that third-quarter sales declined 0.8 percent to 5.48 billion euros, or $7.26 billion, after being hit by negative currency effects and a slowdown in North America — where there was significant de-stocking.
Currency fluctuations negatively impacted revenues by 6 percent. On a like-for-like basis, sales grew 4.1 percent in the period ended Sept. 30.
During a conference call with financial analysts and journalists on Wednesday night, L’Oréal chairman and chief executive officer Jean-Paul Agon said it has been a “pretty good quarter everywhere, in terms of regions and divisions — except in one spot, which is the consumer division in the United States.”
Sales in North America were 1.31 billion euros, or $1.74 billion, down 2.7 percent on a reported basis and up 0.6 percent in like-for-like terms.
Agon said the consumer division had a robust start to 2013 in the U.S., with a full pipeline of launches and initiatives, but then the market slowed markedly and retailers in the country severely reduced their stock.
“The cuts in inventory were bigger than we had anticipated,” continued Agon. “But now…[at] the end of September year-to-date the situation is pretty healthy for us.”
He said, “It’s true that the market has quite significantly decelerated in the U.S.,” but said that the situation should rebalance there.
Agon expects the global cosmetics market will end the year up around 3.5 percent or 3.6 percent, about one point lower than in 2012.
Dollar figures are converted at average exchange for the period to which they refer.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty