1553 ET - L'Oreal is looking into the effects that retaliatory tariffs from regions such as the European Union and U.S. could have on its business and margins overall. The French beauty company manufactures around half of its products in the U.S., and most of its luxury products in North America, executives say on a call with analysts. About 30% of its products are also made in Europe, and the rest comes from Mexico or Canada and a few other parts of the world, the executives say. The company is considering raising prices for its luxury brands--one of its main growth drivers in the latest quarter--to offset tariff effects. The company took on more inventory in advance of tariffs, but the magnitude has been a bit higher than expected and any updates regarding tariffs will mainly affect second-half margins. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
April 17, 2025 15:53 ET (19:53 GMT)
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