A favorable time for L’Oreal
The shares of L’Oreal started surging as the result of reporting strong quarterly results.
The shares ascended more than 6% early on Wednesday, following the report of its third quarter sales. L’Oreal marked the most successful quarterly jump in sales in more than a decade due to active demand in Asia.
L’Oreal succeeded in showcasing such a performance despite the protests that lasted months in Hong Kong. The said political unrest heavily affected the businesses in mainland China.
“Growth in luxury (cosmetics) was fantastic,” analysts at Bernstein stated in a note on L’Oreal.
L’Oreal’s sales earnings went beyond the analysts’ expectations. The company reported that their third quarter sales soared 11% to 7.18 billion euros ($7.98 billion). L’Oreal has been performing well in the business in recent years thanks to its high-end cosmetics brands like Lancome.
According to Reuters, revenues went up 7.8% beating the analyst expectation of 6.3% increase. Also, it was an ascension from the 6.8% growth notched up a quarter earlier.
Commenting on the figures, Jean-Paul Agon, Chairman and Chief Executive Officer of L’Oréal, stated,
“Overall, L’Oréal’s strong performance during the quarter and in the first nine months reinforces our confidence in the dynamism of the cosmetics market, despite a volatile and contrasted environment, and in our ability to outperform it, in order to achieve another year of growth in our sales and profit.”
(Reference: Reuters, CNBC, Globe Newswire)