L'Oreal CEO Sees Slower Beauty Market Growth as China Struggles [BNN Bloomberg (Canada)]
JP Morgan Chase & Co. (JPM)
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Source: BNN Bloomberg
Nicolas Hieronimus told investors at a JPMorgan event in Paris that he now sees the global beauty market growing between 4.5% and 5% this year from a previous forecast of 5% earlier this year, a L'Oreal spokesperson told Bloomberg News. Hieronimus blamed the downward revision on a flat market in China, the representative added. That country had long been a growth engine for L'Oreal, with consumers snapping up its high-end cosmetics offerings. Shares of L'Oreal fell as much as 5.1% in Paris and closed 3.4% lower. They've lost 6.2% so far this year. Rivals also slipped, with Estee Lauder Cos. down as much as 2.8% in New York and Nivea maker Beiersdorf AG closing 2.5% lower in Frankfurt. L'Oreal in April reported a 9.4% gain in like-for-like sales during the first three months of the year, which had allayed some concerns about the state of the beauty business. The company's next quarterly update is set for July 30. ©2024 Bloomberg L.P.
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