L'Oreal CEO Says Luxury Make-Up Growing In Double-Digits, Luxury Skincare Impacted By Lack Of Rebound In China; We Have Seen More Acceleration Of Mass Market In China In Q1 Vs U.S. And Slowdown Of Luxury
Portfolio Pulse from Benzinga Newsdesk
L'Oreal's CEO reported that luxury make-up sales are growing in double digits, while luxury skincare is impacted by a slow rebound in China. The mass market in China saw more acceleration in Q1 compared to the U.S., with a slowdown in luxury segments.
April 18, 2024 | 5:11 pm
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NEUTRAL IMPACT
Estee Lauder, as a competitor in the luxury beauty market, may be indirectly impacted by L'Oreal's performance trends in luxury make-up and skincare.
While the news directly pertains to L'Oreal, Estee Lauder operates in the same market segments and could experience indirect effects based on market dynamics and consumer preferences highlighted by L'Oreal's performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The iShares China Large-Cap ETF (FXI) could see an impact due to L'Oreal's report on the acceleration of the mass market and slowdown in luxury in China.
As an ETF that tracks large-cap Chinese companies, FXI's performance could be indirectly affected by the economic trends in China's consumer sectors, as indicated by L'Oreal's report.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 40
POSITIVE IMPACT
L'Oreal's luxury make-up segment is experiencing double-digit growth, but its luxury skincare is facing challenges due to a slower recovery in China.
The double-digit growth in the luxury make-up segment indicates strong performance and potential revenue increase, positively impacting L'Oreal's stock. However, the luxury skincare segment's struggle in China could temper overall growth expectations.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90