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Luxury makeover helps L’Oreal sales glow

PARIS (AFP) – L’Oreal said on Tuesday its first quarter sales jumped nearly a fifth despite headwinds from the Ukraine conflict and pandemic disruptions in China as the French cosmetics giant pursued its luxury strategy.

The 19 per cent rise in sales to EUR9.06 billion (USD9.8 billion) beat the analyst consensus of EUR8.8 billion established by Factset.

“Against the backdrop of the invasion of Ukraine and strengthened sanitary measures in China, L’Oreal had a strong first quarter,” said Chief Executive Nicolas Hieronimus.

The company, which has been shifting its product portfolio towards the premium segment, said the luxury division posted the strongest sales growth of 25.1 per cent.

In recent quarters the luxury division become the top-selling division for L’Oreal, and generated EUR3.46 billion in sales in the first three months of the year.

The division includes Lancome and Kiehl’s as well as the beauty products of luxury brands such as Giorgio Armani, Prada, Ralph Lauren and Yves Saint Laurent.

An employee of the French cosmetic company L’Oreal Lassigny checks the production on the assembly lines. PHOTO: AFP