Summary of L'Oréal Conference Call Company Overview - L'Oréal has expanded into the cosmetics and skincare market through a series of acquisitions, including Lancôme, Helena Rubinstein, and Maybelline, forming four main product lines: professional products, consumer products, luxury products, and dermatological products [2][3][4] Key Insights - **Growth Performance**: Over the past decade, L'Oréal's consumer products have seen slow growth at approximately 4% annually, while professional care (dermatological) products have grown at 16%, and luxury products have approached 10% annual growth. This has led to an increase in gross margin from around 70% to 74%-75% [2][6][7] - **Research and Development**: L'Oréal maintains a consistent R&D expenditure rate of about 3%, spending approximately €1.3-1.4 billion (over 10 billion RMB) annually, which supports innovation and enhances overall gross sales margin [2][8][9] - **Market Dynamics**: In the first half of 2025, the European and American markets faced pressure, particularly in North America, while the Asia-Pacific region showed signs of recovery, with China achieving a positive growth rate of 3% [2][12] - **E-commerce Growth**: The share of online sales increased from 5% in 2015 to 28% in 2023, stabilizing since 2021. Offline counters have performed well, crucial for brand positioning and recognition [2][13] Additional Important Points - **Acquisition Strategy**: L'Oréal's annual acquisitions are a key growth strategy, allowing for business expansion and product matrix enhancement. Without acquisitions, the company would maintain a 7% annual growth in the European and American markets [2][11] - **Market Potential in China**: The global cosmetics market is approximately €250 billion (around 2 trillion RMB), with China's market size reaching 300-400 billion RMB. L'Oréal's Paris brand is the largest in China, valued at about 15 billion RMB [18][19] - **Competitive Landscape**: Chinese cosmetics brands have strong potential in international markets, particularly in Southeast Asia, Japan, South Korea, and Europe, but they lag in R&D investment compared to established brands [20] - **Long-term Valuation**: L'Oréal's high valuation is attributed to its global consumer goods positioning, continuous R&D investment, and successful acquisitions that adapt to local consumer needs [16] Conclusion L'Oréal's strategic focus on R&D, acquisitions, and market adaptation has positioned it well in the competitive cosmetics landscape, particularly in emerging markets like China, while maintaining robust growth in professional and luxury segments.

Core Insights - L'Oréal plans to discontinue the Gowoonsesang Cosmetics business acquired last year, focusing solely on the Dr.G brand [1][9] - The decision affects all Gowoonsesang brands except Dr.G, including the makeup brand Healus and the vegan brand Vivid Draw [3][9] Brand Focus - Healus, launched in February 2024, is a makeup brand that aimed to promote comfortable and healthy beauty [4][6] - The brand has been operational for less than two years before being discontinued [6] Acquisition Context - L'Oréal announced the acquisition of Gowoonsesang Cosmetics in December last year, and the focus on Dr.G comes less than a year after the acquisition [7][9] - The business line will be renamed to "L'Oréal Korea–Dr.G," simplifying the brand identity [9] Strategic Implications - L'Oréal's decision to focus on Dr.G aligns with its broader strategy of streamlining operations and concentrating on brands with the highest growth potential [10][13] - The company has previously shown a preference for Dr.G in its communications regarding the acquisition [10] Market Trends - The trend of discontinuing non-core brands is not unique to L'Oréal, as other major beauty companies like Unilever and Kao have also announced brand closures amid increasing competition and economic pressures [16]

Group 1 - The first China International Consumer Products Expo has announced its initial list of participating brands, featuring a range of international luxury brands [2] - The brands span various categories including high-end luxury goods, cosmetics, apparel, footwear, bags, watches, home goods, textiles, silk, kitchenware, and handicrafts [2] - Notable brands include Kering's jewelry brands Boucheron, Pomellato, and Qeelin, as well as L'Oréal, Richemont's watch brands such as Baume & Mercier, Panerai, Vacheron Constantin, and Roger Dubuis [2] Group 2 - Several brands are set to launch new products specifically for the expo, including a new watch from Swiss brand Rado and exclusive product launches from L'Oréal [2] - L'Oréal will showcase its 16 beauty brands, offering immersive experiences for attendees [2] - Johnson & Johnson will participate with eight brands across skincare, maternal and infant care, and personal care categories [2]

Core Viewpoint - Foreign beauty companies are focusing on profit recovery and operational efficiency through a series of transformation and restructuring plans from 2023 to 2024, with the common goal of restoring profits as they navigate a challenging market environment [1][4]. Summary by Sections Performance Results - Shiseido's sales in the first half of 2025 fell by 7.6% to 469.83 billion yen, but its core operating profit increased by 21.3% to 23.37 billion yen. L'Oréal's sales reached 22.473 billion euros, a 3% increase, while its operating profit was approximately 4.74 billion euros, up 3.1%, but lower than the previous year's growth of 8%. Estée Lauder's net sales dropped by 10% to 3.55 billion USD, with net profit declining by 52% to 159 million USD, although it turned a profit compared to the previous quarter [2][5]. Measures Taken - The companies have focused on three main strategies: 1. **Cost Control and Operational Efficiency**: Estée Lauder's restructuring plan includes layoffs affecting 1,800 to 3,000 employees, with further cuts of 5,800 to 7,000 jobs planned. L'Oréal has reduced advertising and promotional expenses to 7 billion euros and administrative costs to 4.2 billion euros, reflecting a commitment to cost control [6]. 2. **High-Margin Product Strategy**: Estée Lauder is expanding its high-end fragrance offerings, while L'Oréal has noted stronger growth in high-end brands compared to mid-range brands in the Chinese market [7]. 3. **Innovation and New Revenue Streams**: L'Oréal is implementing a "multi-polar model" to drive growth through technology, local supply chains, and forward-looking investments [8][9]. Market Transition - The shift towards profit recovery indicates a transition from growth-focused strategies to prioritizing profitability due to intensified market competition and shrinking profit margins. Companies like Estée Lauder have initiated profit recovery plans, emphasizing cost structure improvements and reduced high-risk innovations [11][12]. Future Goals - Shiseido aims to restore profitability by 2026, while Estée Lauder targets a return to double-digit profit margins by 2027. L'Oréal remains confident in maintaining high profit margins [14][15]. The companies are also adjusting their strategies to reduce reliance on the Chinese market, which has been a significant source of pressure due to declining sales [16].

Core Insights - Foreign beauty companies are focusing on "profit first" strategies, with significant changes being implemented as they approach the 2025 mid-year report [2][8] - Companies like Shiseido, L'Oréal, and Estée Lauder are experiencing varying degrees of sales and profit fluctuations, indicating a collective shift towards profit recovery [2][10] Financial Performance - Shiseido's sales fell by 7.6% to 469.83 billion yen in the first half of 2025, but core operating profit rose by 21.3% to 23.37 billion yen [2] - L'Oréal reported a 3% increase in sales to 22.473 billion euros, with operating profit growing by 3.1% to approximately 4.74 billion euros, although both figures were lower than the previous year's growth rates [2] - Estée Lauder's net sales dropped by 10% to 3.55 billion USD in the first three months of the year, with net profit down by 52% to 159 million USD, although it managed to turn a profit compared to the previous quarter [2] Strategic Initiatives - Companies are implementing cost control and operational efficiency measures, with Estée Lauder announcing significant layoffs as part of its restructuring plan [3][6] - L'Oréal has focused on strict management of operating expenses, resulting in a record operating profit margin of 21.1% in the first half of 2025 [4] - Shiseido's action plan aims to restore profits through cost reductions and improved operational efficiency, targeting a core operating profit margin increase from 4.97% to 7% by 2026 [8][10] Product Strategy - Estée Lauder is expanding its high-margin product offerings, including a new perfume line in collaboration with luxury brand Balmain [6] - L'Oréal's CEO noted that high-end brands are experiencing stronger growth compared to mid-range brands, indicating a strategic shift towards premium products [6] Innovation and Technology - Companies are leveraging technology and innovation to drive growth, with L'Oréal adopting a "multi-polar model" and investing in local supply chains [7] - All three major beauty companies are embracing AI for various applications, including virtual try-ons and data insights [7] Market Challenges - The shift towards profit recovery reflects the increasing market competition and pressure on profit margins faced by these companies [8][12] - L'Oréal's sales in the Chinese market have shown signs of recovery, but overall performance remains challenged by declining consumer sentiment and competition [11][12] - Estée Lauder has faced multiple quarters of declining sales in the Asia-Pacific region, prompting a strategic pivot to reduce reliance on the Chinese market [12]

Group 1 - Carriage Services (CSV) is currently outperforming its peers in the Consumer Staples sector with a year-to-date return of approximately 21.2%, compared to the sector average of 5.1% [4] - The Zacks Rank for Carriage Services is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 3.3% increase in the full-year earnings estimate over the past quarter [3][4] - Carriage Services is part of the Funeral Services industry, which ranks 36 in the Zacks Industry Rank, and has performed better than the industry average return of about 1% this year [6] Group 2 - Another strong performer in the Consumer Staples sector is L'Oreal SA (LRLCY), which has returned 26% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - The Consumer Products - Staples industry, which includes L'Oreal SA, is ranked 189 and has seen a decline of -3.7% since the beginning of the year [6] - Investors should monitor both Carriage Services and L'Oreal SA for potential continued strong performance in the Consumer Staples sector [7]

北京商报讯（记者 张君花）8月7日，北京商报记者获悉，欧莱雅韩国公司宣布任命Rodrigo Pizarro为新 任首席执行官（CEO)，该任命立即生效。欧莱雅韩国对外表示，Pizarro是一位在欧莱雅集团拥有30余 年全球从业经验的资深高管，曾主导过多个数据驱动项目。此次上任后，他计划通过战略化、以人为本 的管理方式，结合数字创新，带领欧莱雅韩国迈入新的增长阶段。 ...

Core Insights - The beauty industry is undergoing a transformation where packaging, traditionally seen as disposable, is being redefined as a durable good within a circular economy framework [1][2][5] - France is leading the way with a pilot project involving six perfume brands aimed at reusing bottles, marking a significant shift towards sustainability in high-end beauty [2][5] - The French law on waste reduction and circular economy mandates increasing reuse rates, pushing the beauty industry to rethink its operational models [2][24] Group 1: Industry Initiatives - Six major brands have formed alliances to promote sustainability, including the establishment of organizations like TRASCE and The Value of Beauty Alliance [2][5] - The "La Boucle Beauté" project, involving brands like Lancôme and Chanel, aims to test a large-scale perfume bottle reuse system [5][8] - The initiative includes a logistics system for collecting and cleaning used bottles, utilizing innovative CO2 cleaning technology to minimize environmental impact [8][12] Group 2: Regulatory Environment - The French "Anti-Waste and Circular Economy Law" (AGEC) sets specific reuse targets for packaging, requiring 7% reuse by the end of 2025 and 10% by 2027 [2][24] - The law includes over a hundred obligations and prohibitions aimed at eliminating single-use plastics by 2040, with phased targets for reduction, reuse, and recycling [24][26] Group 3: Challenges and Opportunities - The beauty industry generates millions of tons of packaging waste annually, with 95% of containers discarded after a single use, highlighting the need for a shift towards reuse [11][12] - The transition from recycling to reuse presents challenges in product design, cleaning standards, and logistics, requiring a collaborative ecosystem [12][14] - In China, the lack of mandatory policies and infrastructure for reuse presents a significant barrier, with current practices largely focused on recycling rather than establishing a verified reuse system [26][30] Group 4: Consumer Perception - Consumer acceptance of reused products is a critical barrier, as perceptions of hygiene and value affect willingness to participate in reuse programs [32][33] - Education and trust-building measures are essential to shift consumer mindsets towards embracing reused beauty products [32][33]

Core Insights - The beauty industry is experiencing an unprecedented surge in celebrity endorsements, with over a hundred announcements in the first half of 2025, indicating a shift towards a "short and quick" marketing strategy [1][4][34] - The reliance on celebrity endorsements has intensified, with brands struggling to define their identity while depending heavily on star power for sales [1][34] Group 1: Trends in Celebrity Endorsements - The endorsement landscape has become fragmented, with brands seeking to reach broader audiences by employing multiple types of endorsements such as "ambassadors" and "friends" [3][4] - A significant portion of endorsements (approximately 21%) are categorized as "ambassadors" and "friends," while 24% belong to niche endorsements [4] - The trend of celebrities endorsing multiple brands has become common, leading to frequent "overlap" where one celebrity represents various products across different categories [18][28] Group 2: Impact of Endorsements on Product Launches - Nearly 90% of celebrity endorsements are closely tied to new product launches, serving as a key promotional strategy for brands [15][34] - The beauty industry is witnessing a rise in endorsements for niche categories like fragrances, with brands like Jo Malone and Mugler actively engaging younger celebrities to enhance their market presence [22][28] Group 3: Market Dynamics and Brand Strategies - The beauty sector is under pressure to deliver quick results, leading to a focus on celebrity endorsements as a rapid solution for driving sales and traffic [35][37] - The internal pressure for performance metrics has resulted in brands increasingly relying on celebrity endorsements as a primary strategy for achieving sales targets [37][38] - The current market environment has made it more cost-effective for brands to secure endorsements in the first half of the year, as prices for celebrities have decreased due to oversupply and market fluctuations [43][44] Group 4: Evolution of Endorsement Strategies - The nature of endorsements has shifted from long-term brand-building partnerships to short-term sales-driven campaigns, with contracts often lasting only 3-6 months [47][50] - Brands are now prioritizing celebrities based on their ability to drive sales rather than their alignment with brand values, marking a significant change in endorsement criteria [47][50] - The rise of athlete endorsements is notable, as brands seek to leverage the authenticity and positive image associated with sports figures [28][31] Group 5: Future Directions for Brands - To build lasting consumer relationships, brands must move beyond reliance on celebrity endorsements and focus on creating emotional connections and community engagement [58][61] - Strategies such as IP collaborations, content production, and enhanced customer relationship management are essential for fostering long-term brand loyalty [58][59] - The shift from a "celebrity-centric" approach to a "community-centric" model may provide a more sustainable path for brands to connect with consumers [61]

Group 1: Financial Performance - Hermès reported a 9% sales growth in Q2, reaching €3.9 billion, with all regions showing growth [15] - Adidas achieved a 7.3% increase in net sales to €12.1 billion, with a significant 70% rise in operating profit to €1.2 billion [2] - Prada's net revenue for H1 reached €2.74 billion, reflecting a 9.1% growth at constant exchange rates [3] - Canada Goose experienced a robust start to the fiscal year with a 22.4% increase in global revenue to CAD 107.8 million [10] - L'Oréal's sales for H1 were €22.47 billion, with a 1.6% growth, and an operating profit margin of 21.1% [9] - SMCP reported a 2.7% increase in sales to €601.1 million, with growth in all regions except Asia [11] Group 2: Management Changes - Kering appointed Luca de Meo as CEO, offering a €20 million signing bonus, which positively impacted the stock price [4] - PUMA appointed Andreas Hubert as COO, aiming to streamline operations by integrating various functions [8] - Arena announced Mark Pinger as the new Chief Brand Officer, effective October 1, 2025 [8] - Jil Sander's CEO Serge Brunschwig resigned after six months in the position [14] Group 3: Brand and Market Insights - The performance of Prada's main brand declined by 1.9%, while Miu Miu surged by 49.2%, indicating a divergence in brand performance [3] - Hermès' leather goods sales grew by 14.8%, while the watch segment faced challenges with a 5.5% decline [15][16] - L'Oréal's digital transformation efforts are beginning to show results, with a growth acceleration from Q1 to Q2 [9] - The luxury market is showing resilience, with brands like Canada Goose capitalizing on strong demand [10]