L’Oreal’s Q2 2016 Earnings Preview

-2.58%
Downside
97.27
Market
94.76
Trefis
LRLCY: L'Oreal logo
LRLCY
L'Oreal

lrlcy half yearly expectations 2016 final

Highlights For The Company So Far In 2016

  • L’Oreal has undertaken a host of acquisitions so far in 2016.
    • On July 22nd, L’Oreal announced the agreement to acquire US based prestige beauty company, IT Cosmetics, for $1.2 billion. Touted as one of the most rapidly growing U.S. prestige beauty brands, IT Cosmetics was established in 2008 by Jamie Kern Lima and Paulo Lima and is co-owned by TSG Consumer Partners.
    • In July, L’Oreal has made an offer to France-based family owned Rivadis Group to acquire Société des Thermes de Saint-Gervais-les-Bains, the spa group situated in Mont-Blanc, and the license to use the Saint-Gervais Mont-Blanc beauty brand.
    • Also in July, L’Oreal had announced the decision to acquire Atelier Cologne. Established in 2009, Atelier Cologne is found in stores such as Neiman Marcus, Sephora, Fortnum & Mason, and Galeries Lafayette. The brand has a presence in 40 countries with 800 points of sale.
    • In January, L’Oréal USA acquired Raylon Corporation– a full-service wholesale distributor of salon professional products.
  • In July, L’Oréal inaugurated its new Research & Innovation Center in Johannesburg to study the African hair and skin requirements as well as the beauty regimen of sub-Saharan consumers. This is L’Oreal’s seventh R&I hub globally.
  • In May 2016,  L’Oreal announced a partnership with Founders Factory, a global digital accelerator and incubator based in London. The exclusive partnership will enable the companies to invest in Beauty tech startups across the world along with the opportunity to co-create two new companies every year.

Have more questions on L’Oreal? See the links below.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for L’Oreal