L’Oreal Posted A Robust Q3 2016 Indicating That The Second Half Of The Year Might Emerge Stronger Than The First Half

LRLCY: L'Oreal logo

L’Oreal’s third quarter 2016 results surpassed the performance of its previous two quarters this year. The company continued to grow both organically and inorganically. It performed well in its important markets and is growing impressively in several of its New Markets. It witnessed a 3.6% topline growth in the third quarter of 2016 (5.6% like-for-like). The strong growth in the quarter was a result of factors including: Consumer division’s performance outpacing that of the market due to the success of NYX Professional Makeup, Ultra Doux’s global rollout, and a strong performance in North America. L’Oreal Luxe also grew impressively due to the success of its makeup and fragrance segments and its increasing market share in important regions such as China and the U.S. Despite the slowdown in dermocosmetics market in Europe, L’Oreal’s Active Cosmetics has been growing steadily.

The company is especially going strong in North America and Europe (except France) and outperforming the overall markets in those regions. Many of L’Oreal’s New Markets including Southern Asia, Latin America, and Eastern Europe are growing significantly. The company’s e-commerce sales grew by 32% year-over-year in Q3 2016. All these point towards a better second half of 2016 performance by the company and another healthy year overall.


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