L'Oreal(US:LRLCY) Xin Hua Cai Jing·2025-10-22 11:14Core Insights - L'Oréal Group reported a Q3 2025 revenue of €10.33 billion, a 4.2% year-over-year increase, significantly higher than the 2.4% growth in Q2 2025 [2] - The total revenue for the first three quarters of 2025 reached €32.807 billion, reflecting a 3.4% year-over-year growth [2] Regional Performance - The European market showed steady performance with a 4.1% year-over-year revenue increase to €3.57 billion [2] - North America experienced a slowdown with only a 1.4% growth to €2.97 billion [2] - North Asia returned to growth with a 5.8% increase to €1.95 billion [2] - The combined performance of South Asia-Pacific, the Middle East, North Africa, and Sub-Saharan Africa was strong, growing by 12.2% [2] - Latin America saw a revenue increase of 4.4% [2] Business Segment Performance - All major divisions of L'Oréal achieved growth, with the professional products division leading at a 9.3% increase [2] - The skincare and beauty division grew by 5.1% [2] - The consumer products division saw a 3.8% increase [2] - The previously pressured luxury cosmetics division also returned to positive growth at 2.5% [2] Strategic Developments - On October 19, L'Oréal announced a strategic partnership with Kering, acquiring Kering's beauty division for €4 billion, marking the largest acquisition in the company's history [2] - L'Oréal's CEO expressed optimism about the impact of this partnership on annual sales and profit growth, reinforcing the company's position as a global leader in luxury beauty [2] Market Reactions - Despite the revenue growth in Q3, it was slightly below market expectations, with RBC predicting a 4.7% growth and Visible Alpha estimating 4.9% [3] - Analysts noted that underperformance in North America and Latin America contributed to the overall revenue falling short of expectations [3] - Following the earnings report, L'Oréal's stock price dropped by 6.38% to €372.6 [4]