L'Oréal (AO) | Buy | Solid growth and margin expansion expected (preview)

研报英文原文证据摘录

L'Oréal (AO) | Buy | Solid growth and margin expansion expected (preview)

#EarningsPreview #Positive

Release date: 01 July 2026

Charles-Louis Scotti

Head of Luxury Goods

+33 1 70 98 85 16

cscotti@keplercheuvreux.com

BuyL'Oréal

France | Personal care Beta Profile: MCap: EUR204.8bn Country Top Picks

Target Price: EUR430.00 Bloomberg: OR FP Reuters: OREP.PA

Current Price: EUR383.65 Free float 43%

Up/downside: 12.1% Avg. daily volume (EURm) 314.4

YTD abs performance 4.7% Market data: 30 June 2026

52-week high/low (EUR) 406.70/344.90

Solid growth and margin expansion expected (preview)

Key points:

We expect solid H1 results, with Q2 adjusted LFL growth of +5.2% and 30bps EBIT margin expansion in H1.

Growth should remain broad-based, led by Professional, Luxe and Dermatological Beauty, with all regions contribution .

Comps become more demanding in H2, notably due to a stronger contribution from the stimulus plan in H2-2025.

We reiterate our Buy and EUR430 TP. L'Oréal remains our preferred Beauty name, backed by its structural outperformance.

Reporting date Wednesday 29 July 2026 (6pm CET)

Conference call Thursday 30 July 2026 (9am CET)

H1 2026 preview: solid growth and margin expansion expected

L'Oréal will publish its H1 2026 earnings on Wednesday 29 July. We expect a solid set of numbers, driven by a continued dynamic

beauty market despite the geopolitical backdrop, strong execution and positive reception of recent innovations.

In detail, we forecast Q2 adjusted LFL growth of 5.2%, excluding last year's IT transformation impact, and reported LFL growth of

7.0%, after taking into account the prior year's -180bps IT transformation impact. Our estimates do not include this year's IT

transformation impact, which remains unquantifiable at this stage.