Cosmetics: Apr–Jun results at L’Oréal and Procter & Gamble

Research evidence excerpt

Cosmetics: Apr–Jun results at L’Oréal and Procter & Gamble

Global Markets Research

Cosmetics: Apr–Jun results at L'Oréal and 30 July 2026Procter & Gamble

EQUITY: JAPAN TOILETRIES & COSMETICS

Strong performance in mainland China, weak showing in travel Research Analysts

retail Japan toiletries & cosmetics

Yuji Ohana - NSC

yuji.ohana@nomura.comQuick Note +81-3-6703-1143

Solid performance in North America, but mixed picture in China

On 29 July local time, France's L'Oréal and US-based Procter & Gamble (P&G) reported

Apr–Jun results (corresponding to Q2 and Q4, respectively). The implications for

Japanese equities are as follows. (1) In the North American market, sales across beauty

categories were solid, particularly hair care, and this looks like a tailwind for the sales

environment for Japanese companies as well. (2) In the Chinese cosmetics market, sales

on the mainland were strong, driven by high-end products, and also benefited from some

demand shifting from travel retail to the mainland. L'Oréal sales look to have fallen in the

travel retail Asia (TRA) segment. The decline in visitor numbers to Hainan Island and the

impact of changes in mainland tax-free retailers are apparently still weighing on

performance. Given the higher profitability of travel retail, this is likely somewhat negative

for the China businesses of Shiseido [4911] and Kose Holdings [4922].

L'Oréal: Solid performance across all regions

Q2 sales rose 6% y-y on an adjusted local currency basis. All regions performed well,

each posting mid-single-digit or higher revenue growth. Sales rose 5% y-y in North Asia,

including China. During China's 618 online shopping event, the high-price LUXE line

drove earnings. At the same time, travel retail posted a y-y decline in sales, and in