L’Oreal CEO sees lasting US market growth
7:15 am Friday, July 30th, 2021
PARIS (Reuters) – Maybelline owner L’Oreal said on Friday the beauty company’s performance in the United States would likely remain strong through to the end of the year, despite ongoing uncertainty related to the coronavirus pandemic and shifting recommendations on mask wearing.
“I think you can count on the U.S. to be back for the long term,” CEO Nicolas Hieronimus, a L’Oreal veteran who took the helm in May, told analysts.
On Thursday the group reported second-quarter sales growth of 33.5%, boosted by strong U.S. and Chinese markets. The cosmetics giant, and high-end fashion labels like LVMH and Kering, have benefited from booming demand in both countries over the past quarter, marking a strong recovery and pushing past pre-pandemic levels lifted by pent-up demand as shops reopen.
U.S. consumption has recovered faster than in Europe, with perfume and make-up bouncing back strongly as socialising resumes, L’Oreal said.
The group has been working on boosting its e-commerce offering and rebalancing activities in the country, beefing up its skin care business, with its La Roche Posay label leading competitors in prescription skin care, Hieronimus said.
He added that the group aims to gain market share in the United States.
Vaccinated Americans have been allowed to ditch their masks but some exceptions remain.
(Reporting by Mimosa Spencer; Editing by Clelia Oziel)
