L’Oreal sales hit by slowdown in US and Eastern Europe
Posted By Stephanie Tripp on July 13, 2011
Sales between April and June reached €4.64bn showing a 4.6 per cent increase on last year, but under the expected growth rate, particularly after a strong first quarter.
The biggest slowdown came in Eastern Europe, having recorded a slight growth in this region in the first quarter, reported sales tumbled 8.2 per cent.
“After several years of growth, the sales trend in Eastern Europe is disappointing in all the countries of this zone, particularly in Russia and Ukraine,” commented CEO Jean-Paul Agon.
The zone took another hit this quarter adding to what has been a slow start to the year in what L’Oreal call ‘a dismal economic environment’.
More difficult than expected
This has been attributed to the fact that consumer confidence and market dynamism have proved more difficult than expected, particularly in mass-market and the pharmacy channel.
Furthermore, in this zone, the cosmetics giant claims the launch phasing tends to be focused on the final months of the year.
Having seen revenue in the US grow above market expectation in the first quarter, L’Oreal saw reported figures fall 4.9 per cent in the last three months.
The Luxury Products Division made a good start to the year, thanks in particular to the rebound at Lancôme and another period of strong growth for Kiehl’s and for fragrances.
Similar Posts:
- Lanvin and Jimmy Choo sales help boost Inter Parfums results
- Aptar reports strong gains from cosmetics and fragrances
- Hospital Job Growth Continues Despite Record Pace of Layoffs
- Management changes in US and APAC for Lipo
- Euromonitor highlights the most interesting trends in the global cosmetics market
Comments
Leave a Reply