This marked a sequential deceleration, compared with the 6.4 percent like-for-like company growth in the first quarter and 5.7 percent uptick in the second quarter of 2012.
“The most notable slowdown was in Professional (+0.1 percent), which saw its lowest quarterly growth since 2009. Luxe (+6.6 percent) also weakened (down from +12 percent in the first quarter and +8.7 percent in the second quarter) and the New Markets (+8.1 percent) stayed in single digits for the fifth quarter in the last six, while Western Europe (-0.6 percent) stayed in negative territory,” said Andrew Wood, an analyst at Sanford C. Bernstein & Co., in a research note. “North America remained L’Oréal’s star performer (+7.1 percent).”
Also on a like-for-like basis, the company’s Consumer Products division’s sales grew 4.9 percent in the third quarter. Its Active Cosmetics division’s revenues increased 5.6 percent, while The Body Shop and Dermatology sales rose 5.1 percent and 3.1 percent, respectively.
In the nine months ended Sept. 30, L’Oréal registered revenues of 16.73 billion euros, or $21.45 billion at average exchange, up 10.9 percent. On a like-for-like basis, sales gained 5.6 percent.
L’Oréal chairman and chief executive officer Jean-Paul Agon during a conference call Tuesday night confirmed that the fourth quarter will be “slightly better” than the third quarter for the company, due to some of the recent well-received second-half product launches, such as the women’s fragrances La vie est belle from Lancôme and Manifesto from Yves Saint Laurent.
As for the Professional Products division, he said, “We believe that the next quarter will be better for us” and that the third quarter “was a low point.”
Regarding the beauty industry at large, Agon said: “We are quite confident for the evolution of the market.” He explained it’s growing between 3 percent and 4 percent in the U.S., for instance, that in new emerging markets such as Latin America it is “still very positive,” and “pretty solid” in France, the U.K. and Germany.
Agon added L’Oréal continues to believe the overall beauty market should be pretty solid through the end of this year and also in 2013.
He maintained L’Oréal’s 2012 targets of outperforming the cosmetics business, which the company estimates will grow approximately 4 percent worldwide this year, and to achieve growth in sales and profits.
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