L’Oreal stock pops on Q1 earnings, on track for biggest gain in 18 years
Shares of the world’s largest cosmetics company L’Oreal popped as much as 10% after it reported strong growth ahead of expectations after the bell on Wednesday.
Organic sales rose 7.6% in the first quarter to 12.2 billion euros ($14.3 billion), compared to expectations of around 3%, according to analysts. Stripping out the impact from one-off items, growth was 6.7% in the quarter.
“We not only outperformed a beauty market that remains dynamic but accelerated our market share gains around the world,” CEO Nicolas Hieronimus said.
“Our e-commerce leadership allows us to double down on the winning channel with spectacular results across all regions, especially emerging markets,” he added in a statement. “The second half 2025 recovery in our two largest countries, the US and China, continued and we outpaced the market in both.”
Underlying growth was “very impressive,” said Barclays analysts. “Cosmetics markets growth of 4% is showing no signs of slowing,” they said. “Its [L’Oreal’s] beauty stimulus plan is resulting in even stronger share gains even in volatile times.”
Shares were last seen up 9%, on track for their largest daily gain since November 2008.
L’Oreal shares were down 2% over the past 12 months coming into Thursday trading.
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