L'Oreal Shares Weighed Down by Disappointing Q3 Sales

4 days ago

Chloe Mele

"Yeah, absolutely. So, yeah, L'Oreal Shaza you say are getting hit quite hard this morning because of those disappointing sales for the third quarter and that was due primarily to a lot of weakness in the US market. So, one of the key problems is that L'Oreal is really overexposed to the makeup category in the US and that is a category that has been struggling lately and consumer demand in the US is quite weak just generally. Um there's signs however of improvement in China where it saw quite good demand for the more high-end side of those beauty products. But that really wasn't enough to offset that drag from the US. And the CEO also was quite cautious about China saying that analysts should not get too excited because one good quarter does not mean that there's a trend there."

The speaker explains that L'Oreal's shares suffered due to disappointing third-quarter sales, largely because of overexposure to the struggling US makeup category. Although there were signs of recovery in China, these were not enough to counterbalance the weakness in the US market, and the CEO remains cautious about interpreting isolated positive results as a trend.

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