By Helena Smolak
L'Oreal is scheduled to report results for the first quarter on Thursday after markets close in France. Here is what you need to know.
SALES FORECAST: The French beauty giant is expected to post quarterly sales of 11.47 billion euros ($13.02 billion), according to a poll of estimates by 15 analysts compiled by Visible Alpha. In the prior-year period, the company booked sales of 11.24 billion euros.
Shares in L'Oreal have risen roughly 0.6% since the start of the year and fallen about 17% in the past 12 months.
WHAT TO WATCH
--TARIFFS: L'Oréal is exposed to U.S. import tariffs, as it manufactures most of its luxury and dermatology products in Europe. However, its high gross margins can likely withstand a financial impact from tariffs with minimal disruption, Barclays analysts said in a note.
--REGIONAL SALES: L'Oreal is set to face a slow start to the year but could see improvements over time, depending on whether sales in China and the U.S. improve, Jefferies analysts said in a note. For the first-quarter, L'Oreal's China sales could show some recovery but likely won't offset weaker-than-expected U.S. consumer demand and deteriorating trends in Europe, Morgan Stanley analysts said in a note.
--LUXURY SECTOR WOES: LVMH Moet Hennessy Louis Vuitton's first-quarter Perfume & Cosmetics sales miss on Monday could lower expectations for L'Oreal's luxe division sales and mirror a softer environment for beauty, Jefferies analysts wrote.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
April 15, 2025 12:37 ET (16:37 GMT)
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