2Q26 Results: Sleek

Research evidence excerpt

2Q26 Results: Sleek

Update

July 29, 2026 05:43 PM GMT

Morgan Stanley & Co. International plc+ML'Oreal S.A | Europe Sarah Simon

Equity Analyst

2Q26 Results: Sleek Sarah.Simon@morganstanley.comTilly Eno +44 20 7425-6064

Tilly.Eno@morganstanley.com +44 20 7677-3662

AlphaSignals Earnings Reaction David J Roux

Unchanged In-line Largely unchanged David.Roux@morganstanley.com +44 20 7425-1040

Impact to our thesis Financial results versus consensus Direction of next 12-month Chris Linford, CFA

consensus EPS

Research Associate

Source: Company data, Morgan Stanley Research Chris.Linford@morganstanley.com +44 20 7425-1639

Richard Li

Key Takeaways Richard.Li@morganstanley.com +44 20 7425-1976

Q2 adjusted LFL growth of +6.3% ahead of sellside +5.6%, but we do think L'Oreal S.A (OREP.PA, OR FP)

buyside expectations were higher ADRLRLCY.PK

Household & Personal Care Products | France

H1 EBIT margin increase of 10bps reflects GM expansion; higher A&P (+70bps)

Stock Rating Equal-weight

offset by lower G&A (-70bps) Industry View In-Line

Price target €376.00

EPS missed by 2%, reflecting higher interest costs and lower than expected Shr price, close (Jul 29, 2026) €383.50

associates, which may reflect timing of closing of the Galderma stake purchase 52-Week Range €408.35-338.85

Mkt cap, curr (mn) €205,293

The company continues to expect to outperform the beauty market; the key is Net debt (12/26e) (mn)* €7,546

EV, curr (mn)* €207,395

what it expects for growth in H2 given tougher comps/competition

* = GAAP or approximated based on GAAP

Expect positive share price reaction. L'Oreal 2Q26 adjusted LFL was 6.3% vs

company cons of 5.6%. The result is consistent with CFO Christophe Babule's

comments at our luxury conference that Q2 looked much like Q1 (which had