L'Oréal recently reported a +6.4% increase in sales in the first quarter of 2012, year over year based on a comparable structure and identical exchange rates. The beauty firm also reports growth in all branches and divisions.
The first months bode well for the year, as all divisions and all geographic zones are expanding, according to Jean-Paul Agon, chairman and CEO of L’Oreal. “The worldwide cosmetics market remains strong, and trends are favorable for all brands. L'Oréal Luxe is achieving remarkable growth, bolstered in particular by the dynamism of Lancôme, the success of the designer fragrances, and the vitality of Kiehl's,” he says. “During the first quarter, the New Markets have become the number one geographic zone for the group, driven by very strong performances in Asia. North America is still achieving sustained growth. In Western Europe, in a sluggish market context, the group is growing and improving its positions. Finally, the new initiatives in Eastern Europe are beginning to pay off.”
Agon also noted that these performances demonstrate the relevance of the company’s strategic thrusts and the solidity of the L'Oréal business model, based on excellence in research and creativity in marketing. “Although it is not possible to extrapolate from these figures, and despite the economic environment which remains uncertain, the first three months have reinforced our confidence in the group's ability to outperform the market in 2012, to strengthen its global positions, and to achieve another year of growth in both sales and profits,” he said.