L'Oréal SA: Q2 preview: LOR class to shine despite comps

Research evidence excerpt

L'Oréal SA: Q2 preview: LOR class to shine despite comps

al story: L’Oréal

52 Week range EUR 408.35-338.85continues to take share, underpinned by best-in-class R&D, accelerating AI-enabled

marketing and a scalable global model, reinforcing its position as the highest-quality

compounder in the space.

Divisions: We expect Growth to remain strong across divisions, albeit with some normalisation

from very strong underlying Q1 trends. Professional products should continue to outperform

the market and be one of the strongest drivers of the group, despite tougher comps, supported

by structural tailwinds in premium haircare, where penetration remains low and L’Oréal’s Source: IDC

market leadership (c.27% share) and innovation pipeline underpin above-market growth. Link to Barclays Live for interactive charting

Luxury is expected to improve sequentially, aided by innovation and slightly softer comps,

although demand remains somewhat uneven across geographies with China continuing to be a European Consumer Staples

watch out. We expect continued strength in Dermatological Beauty, benefiting from the shift Abhishek Gokhale

toward science-led, efficacy-driven skincare and strong AI visibility of brands such as CeraVe and +91 (0)22 6175 1952

La Roche-Posay. Consumer Products should deliver more modest but resilient growth, abhishek.gokhale@barclays.com

supported by innovation and price/mix, although the segment remains more exposed to mass- Barclays, UK

market softness. Taken together, L’Oréal’s ability to operate across all four divisions – from Imogen McCurley

+44 (0)20 3555 4999

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies imogen.mccurley@barclays.com

covered in its research reports.