L‘Oréal Q2/H126 Preview: A robust H126 but visibility weakening into H226

Research evidence excerpt

L‘Oréal Q2/H126 Preview: A robust H126 but visibility weakening into H226

J P M O R G A N Europe Equity Research

03 July 2026

L'Oréal Neutral

OREP.PA, OR FP

Q2/H126 Preview: A robust H126 but visibility Price (02 Jul 26):€387.95

weakening into H226 Price Target (Dec-27):€365.00

Ahead of L’Oreal Q2/H126 reporting on 29th July, we update our forecasts, European Food Producers,

expecting a robust adjusted LFL in the quarter at +5.1%, though we acknowledge Household & Personal Care

that expectations run higher (we believe the bar is likely closer to 6% LFL for Q2) Products, Beverages & Tobacco

and that the IT phasing impact could lead to strong reported sales. Data tracking Celine Pannuti, CFA AC

for L’Oreal has been very robust evidencing continued share gains and SAPMENA (44-20) 7134-7123

momentum in Q1 has been particularly strong. That said, the Beauty market is not celine.pannuti@jpmorgan.com

showing signs of acceleration (‘remains shy of 4%’ as per management) while Edward G Hockin

recent data points to risk of deceleration amid tough H2 comps: China demand (44-20) 7742-6937

edward.hockin@jpmorgan.com

recovery remains fragile, more cautious DMs consumer (WE luxury market J.P. Morgan Securities plc

weakness, tough price comps in the USA and price competition in US make-up).

We leave our estimates unchanged, expecting a slower H2 LFL at c4% and 4.4% Specialist Sales contact details:

into FY27 – below consensus of 5.4%. We also expect a slower H1 profit growth Olivia Petronilho - Specialist Sales -

(on slower margin increase) while for FY26/27 we are 3%/6% below consensus as European Consumer

we factor the dilutive impact of recent acquisitions. Net-net, we see the positive top (44-20) 3493-3709