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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast