L’Oreal shares rose 5% on Friday as the French cosmetics giant beat expectations with strong sales growth in the first quarter, calming fears of a slowdown in the United States.
L’Oreal shares were up 5.0% by 07:45 GMT, their biggest gain since January 2023. The stock had lost 6% this year through Thursday’s close.
After the market closed on Thursday, the world’s largest beauty products company reported sales growth of more than 12% in both North America and Europe, driven by its mass-market and dermatology portfolios, helping offset weakness in the luxury segment.
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“An extremely resilient quarter despite concerns,” Barclays analysts said. While L’Oreal acknowledged the slowdown in the US, the company was “pleasantly surprised by growth” in both the US and Europe, they noted.
The update from the French company lifted the entire sector, pushing shares of US rival Estee Lauder up about 5% on Thursday and Coty up 3%.
They noted that L’Oreal’s ability to redistribute advertising and promotion investments around the world and across different categories and demographics allows it to optimize global growth and make it more sustainable.
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