L’Oréal has posted better-than-expected second-quarter sales as shoppers continued to spend on haircare and make-up, despite wider pressure on household budgets.
The company, which owns brands including Maybelline, CeraVe and L’Oréal Paris, recorded sales of €11.6bn during the three months to the end of June.
Comparable sales increased 6.3 per cent after adjustments relating to the introduction of a new IT system, ahead of analysts’ expectations of 5.7 per cent growth.
The performance was supported by strong demand for new hair products and mascaras, alongside better-than-anticipated growth from L’Oréal’s consumer products division, its largest business unit.
Haircare sales performed particularly strongly in Europe, while the company also reported a “remarkable outperformance” across its online channels.
The results suggest beauty products are continuing to benefit from the so-called “lipstick effect”, where consumers purchase relatively affordable treats during periods of economic uncertainty.
L’Oréal chief executive Nicolas Hieronimus previously highlighted the trend as cost-of-living pressures prompted shoppers to seek smaller indulgences rather than more expensive discretionary purchases.
Sales in Europe, the group’s largest market, increased 6.7 per cent on an adjusted like-for-like basis during the quarter.
North American sales rose 5.9 per cent, broadly in line with expectations.
L’Oréal’s performance contrasted with weaker results from other parts of the luxury market. LVMH and Hermès both reported declining growth across their perfume and cosmetics operations during the week.
However, Unilever recorded underlying sales growth of eight per cent in its beauty and wellbeing division.
Growth in L’Oréal’s Luxe division, which accounts for around a third of group sales, reached 4.7 per cent but fell short of analysts’ forecasts.
The division achieved double-digit growth in China, although continued difficulties in the country’s travel retail market restricted its overall performance.
L’Oréal said quarterly growth had eased from 6.7 per cent during the first three months of the year, reflecting tougher comparisons with the previous period.
The group, whose portfolio ranges from mass-market skincare and cosmetics to designer fragrances and professional salon products, has seen its shares rise four per cent since the beginning of 2026.
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