Asian demand boosts L’Oreal’s higher-than-expected sales
L’Oreal's share price has climbed more than six per cent today on the back of higher-than-expected sales growth.
Late last night the French cosmetics giant posted revenues of €6.47bn (£5.75bn) in the July to September period, rising 6.2 per cent from the previous year and 7.5 per cent on a like-for-like basis.
Buoyed by rising demand for its luxury brands in Asian markets, the firm’s performance trumped analysts estimates of 5.79 per cent growth.
Chief executive Jean-Paul Agon said: “After an acceleration in the third quarter, with the highest quarterly growth rate for 10 years, L'Oréal's sales have shown strong growth over the first nine months of the year.”
Bernstein analyst Andrew Wood commented: “L’Oreal’s stock has been lacklustre in recent weeks, giving up some year-to-date gains, as investors worried about slowing top-line momentum, but the strong third quarter should drive a good, positive stock reaction.”