L'Oréal SA: Setting the Agenda

Research evidence excerpt

L'Oréal SA: Setting the Agenda

Equity Research

European Consumer Staples

22 July 2026

L'Oréal SA

Setting the Agenda

After a strong Q1 of 6.7% OSG which easily topped cons, we

think L'OR can deliver 5.5% OSG in Q2 albeit 6% not out of

reach either. The key swing factors are US, China and SAP OREP.PA/OR FP OVERWEIGHT European Consumer

StaplesMENA, and by category Skin, Hair and Fragrances. LOR's rate NEUTRAL

Price Target EUR 450.00

of outperformance vs global cosmetics market is accelerating Price (21-Jul-26) EUR 378.75

Potential Upside/Downside +18.8%

Source: Bloomberg, Barclays Research

L’Oréal reports H1 results after market on 29 July. We forecast Q2 adj.LFL growth (ex-

phasing) of 5.5%, broadly in-line with consensus, following 6.7% in Q1 and 4.2% in Q2 last

year. We forecast a H1 operating margin of 21.2%. While this represents some sequential European Consumer Staples

moderation, we expect L’Oréal to continue growing comfortably ahead of a beauty market Warren Ackerman

growing at c4%. The key swing factors are Lux and North Asia. Luxury should accelerate +44 (0)20 3134 1903

and North Asia should improve on easier comparisons, although the outcome of 6/18 warren.ackerman@barclays.com

Barclays, UKshopping festival in China is a swing factor, while Professional Products and

Dermatological Beauty, in our view, are set to remain the strongest underlying growth Laurence Whyatt

drivers. Reported growth will again be distorted by IT phasing due to SAP roll-outs; the +44 (0)20 7773 5324

reversal of Q1 sell-in, especially impacting the UK and ANZ, should be partly offset by laurence.whyatt@barclays.com

Barclays, UKfurther US sell-in and easier China phasing. We therefore focus on the adj.LFL as the

cleaner measure of underlying demand. Imogen McCurley

+44 (0)20 3555 4999