L'Oréal Q3 Sales Rise, Asia Travel Retail Shows Growth
The French beauty group reported €11.6 billion in third-quarter sales, up +7.7% on an adjusted like-for-like basis, with strong performance noted in South Korea and Hainan travel retail.
Strong Global Performance in Q3
L'Oréal achieved €11.6 billion in sales for its third quarter, ending 30 September, reflecting a +7.7% increase on an adjusted like-for-like basis. CEO Nicolas Hieronimus characterized this performance as "exceptional." For the nine months concluded on the same date, the beauty giant's sales reached €35.33 billion, marking a +6.9% rise.
The company stated it significantly outpaced the global beauty market, which saw approximately +5% growth during the third quarter. This growth was reported across all divisions and regions, with particularly strong showings from Professional Products and L'Oréal Dermatological Beauty, alongside a notable recovery in the Luxe division.
Mixed Travel Retail Trends in Asia
L'Oréal observed a return to growth in its travel retail sector during the third quarter, outperforming the overall market. South Korea contributed positively, driven by a rebound in travel activity.
Hainan's travel retail segment was described as "very positive." However, Mainland China's travel retail faced some challenges, which the company attributed to earlier retailer transitions at key airports. Specifically, Avolta took over from Sunrise Duty Free at Shanghai Pudong Terminal 1 and Satellite Hall 1.
Concurrently, China Duty Free Group replaced its subsidiary Sunrise at Pudong's T2 and S2 Satellite Hall, as well as at Hongqiao's T1. This required re-stocking efforts by L'Oréal within these new retail operations.
Category and Regional Drivers
Across the company, fragrances and haircare were primary drivers of category growth, while skincare continued to accelerate. Ecommerce revenue saw a substantial increase of approximately +17%, significantly ahead of the broader online market.
Geographically, the SAPMENA-SSA region (South Asia Pacific, Middle East, North Africa, and Sub-Saharan Africa) led regional growth, supported by strong momentum in all developed regions. Globally, the travel retail market turned positive in Q3, primarily fueled by strong acceleration in Europe and positive results in the Americas. North Asia's travel retail remained negative, though less so, showing mid-single-digit declines.
Implications for Asia's Premium Beauty Market
For Asia's beauty economy, L'Oréal's results highlight a continued premiumization trend, especially within China. Despite a slight slowdown in Q3, the Chinese market maintained dynamism, growing +2% to +3% for the nine months.
The most active segments in China were premium categories: luxury, dermatological, and professional products, which grew mid-single digits or higher, while the mass market remained flat. Brands such as Helena Rubinstein, SkinCeuticals, and Kerastase drove growth in these premium areas.
This suggests that brands focusing on high-value offerings and specialized beauty solutions will find ongoing opportunities in China. Furthermore, the recovery in Hainan and South Korean travel retail indicates a strengthening channel for premium beauty sales in these key Asian travel hubs.
Three newsletters, one newsroom.
The Beauty Brief delivers Asia's beauty week every Monday. Regulatory Radar tracks the rule changes that move markets. Trend Pulse decodes what consumers want next. All free to start.
