By L’Oréal’s Q4 earnings report showed slower-than-expected sales growth of 2.5%, reaching €11.08 billion ($11.9 billion). This marks a significant deceleration compared to previous quarters, driven by declining demand in China and North America. Analysts had forecasted a 3.9% growth rate, highlighting the market’s underperformance.
The luxury division, which includes high-end brands like Lancôme and Kiehl’s, saw sales rise only 1%—a major slowdown from its previous 3.4% average. North Asia, a key revenue contributor, remained a challenging market due to shifting consumer habits and economic pressures.
CEO Nicolas Hieronimus acknowledged the headwinds but remained bullish on long-term growth, introducing a beauty stimulus plan to boost demand. Additionally, he called for European policymakers to streamline regulations and support industrial competitiveness.
Despite current setbacks, L’Oréal continues investing in supply chain resilience and sustainability-focused innovations to strengthen its market position. Investors remain watchful of the company’s 2025 performance as it navigates economic uncertainties.