In the second quarter of 2025, L’Oréal, the world’s leading beauty company known for brands like Lancôme and Garnier, reported a slight decline in sales, dropping 1.3% in reported figures. However, a closer look reveals that when adjusted for comparable factors, the company’s sales grew by 2.4%. What’s particularly noteworthy is that this growth was primarily attributed to its Professional Products division and robust performance in emerging markets, especially China. The company’s total sales for this quarter reached an impressive 10.74 billion euros.
Looking at the first half of the year, L’Oréal’s overall sales climbed to 22.47 billion euros, showing a 1.6% uptick when accounting for reported figures and a 3% increase on an adjusted basis. Interestingly, currency fluctuations had a negative impact, which detracted 1.9% from overall sales. CEO Nicolas Hieronimus expressed optimism about these results, indicating that the acceleration in like-for-like growth from the first quarter was anticipated and signals a strengthening beauty market worldwide.
Hieronimus emphasized the ongoing improvement in emerging markets, the slight recovery in mainland China, and gradual growth in North America, which collectively compensated for a downturn in Europe. He believes this validates L’Oréal’s multi-polar operational model, which allows the company to thrive across various global markets. Looking forward, there’s confidence that this upward trend will continue, driven by key product launches as part of the company’s beauty stimulus plan.
On the profitability front, L’Oréal reported a net profit—inclusive of non-recurring items—of 3.78 billion euros for the first half, reflecting a modest 1% increase. The company has also successfully improved its operating margin by 30 basis points in the same period, a feat attributed to careful management of operating expenses. To further bolster these gains, the firm is preparing for significant product launches, such as new fragrances from Prada and Miu Miu, which are expected in the second half of the year.
Analyzing L’Oréal’s performance by division, the Professional Products segment led with a 6.5% growth rate, generating 2.55 billion euros. The Dermatological Beauty division saw a 3.1% increase, while the Consumer Products division grew by 2.8%. The Luxe division also performed positively, with a 2% rise in sales. Regionally, the South Asia-Pacific, Middle East, North Africa, and Sub-Saharan Africa zones emerged as the fastest-growing areas for the group, with respective sales increases of 10.4% and 10.3%.
L’Oréal’s outlook remains positive despite challenges. Key product categories like fragrance and hair care exhibited strong growth, while certain regions, such as North Asia, experienced a slight decline. Nevertheless, Hieronimus remains confident that L’Oréal will continue to surpass global beauty market growth, projecting another year of sales increases and improved profitability. With ongoing navigation of economic and geopolitical shifts, the company appears well-positioned to face future challenges while maintaining its industry leadership.