2Q Preview: Cleaning Up

Research evidence excerpt

2Q Preview: Cleaning Up

France | Consumer Products

L'Oreal EquityJuneResearch24, 2026

TARGET | ESTIMATE CHANGE2Q Preview: Cleaning Up

We update ahead of 1H results on 29 Jul. OR has outperformed peers in RATING UNDERPERFORM

Noram/EU Nielsen data for the last 12 months, & we expect growth ahead PRICE €378.10^

of the category in 2Q. We model 5.1% adj LFL (4.2% reported vs 4.8% cons), PRICE TARGET | % TO PT €328.00 (€323.00) | -13%

with efforts to identify a clean underlying cons welcome. China data is 52W HIGH-LOW €408.35 - €338.85

supportive for the market, while M&A is net accretive to EPS (GALD moves FLOAT (%) | ADV MM (USD) 44.9% | 207.91

to equity method, Kering dilution). At c27x NTM P/E, we think OR stock is MARKET CAP €202.6B | $231.9B

overvalued. Underperform. TICKER OR FP

^Prior trading day's closing price unless otherwise

noted.

Noram remains the growth driver. Nielsen data continues to be very strong for OR, with

significant outperformance vs peers. We remain conservative on how much of this translates

to organic sales (JEFe reported OSG 5.2% vs cons 3.5%, JEFe adj OSG +7.8%), with Nielsen FY (Dec) CHANGE TO JEFe JEF vs CONS

indicating 10% growth in the last 12 months. This compares to c4% growth between 2Q25 & 2026 2027 2026 2027

1Q26. We believe the discrepancy between adjusted growth & Nielsen is driven by performance REV* +2% +3% -3% -4%

in untracked channels, predominantly luxe. We model 1Q's IT phasing impact reversing 25% EPS +2% +2% +1% NM

in 2Q26, with the remainder in 3Q26, as multiple projects & a late-Q2 changeover extend the Source: VisibleAlpha

disruption.

Europe resilience continues. European data is slower than Noram, though OR continues to

win share via CeraVe & Mixa. Cons expects 2%, implying 8% LFL after IT adjustments (vs JEFe