L’Oréal Cosmetics Company (OTCMKTS: LRLCY) reported strong first quarter revenue growth on Tuesday. The Company said sales rose 11.4% to USD 8.58 Billion, up 7.7% on a like-for-like basis. Analysts expected a 6.6% comparable sales growth.
“Despite a volatile, uncertain and contrasted economic environment, this positive start to the year gives us confidence in our capacity to outperform the market in 2019 and see another year of growth in sales and profits” said Jean-Paul Agon, Chairman and CEO of L'Oréal.
The Company attributed its better-than-expected results to heightened demand for luxury skincare. Its four billionaire-brands, Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl's all posted more than 15% growth mainly driven by the Asia Pacific region.
The cosmetics giant said comparable sales in its Consumer Products Division rose 3.3% thanks to anti-aging face care as well as a successful makeup launch. It also reported a 2.2% comparable sales increase in its Professional Products Division led by growth in the Asia Pacific. L’Oréal’s Active Cosmetics Division posted another quarter of double digit growth, reaching USD 848 Million in sales.
E-commerce and Travel Retail were highlighted as major successes for L’Oréal. E-commerce grew by 43.7% worldwide, and Travel Retail continues to grow well passed the USD 2.26 Billion dollar mark it hit in 2018.
In the first three months of 2019, L'Oréal announced it had been recognized by the Bloomberg Gender-Equality Index as one of 230 companies demonstrating commitment to gender equality. The Company was also honored as one of the world’s most ethical companies by the Ethisphere Institute, a global leader in promoting corporate ethics.