As 2016 drew to a close, L’Oréal had already seen promising sales numbers. Their year-over-year growth stood at four percent in comparison, though that was only the start for the company.
2017 has already proven to continue that trend for the consumer giant as L’Oréal recently announced their quarter 1 numbers. Holding a value worth just over seven percent more than that of Q1 2016, it benefits greatly from the success of their Luxe division.
The luxury cosmetics sales reached a bolstered growth of 12.2 percent comparatively to the year prior, marking the highest growth in a quarter for L’Oréal since 2012.
The same isn’t the case for the market itself, which is currently hovering just below analysts’ estimated expectation of four percent growth.
L’Oréal Chairman and CEO, Jean-Paul Agon, noted the worldwide industry market to be tracking around an estimated 3.5% jump in the first quarter of 2017. Agon ventured opinion that despite initial stumbles in the beginning of 2017, the industry market is on target for meeting the 4% benchmark of experienced, average growth rate.
“The latest information we have is pretty positive,” stated Agon, according to WWD. “We see that luxury is still good, that active cosmetics — the dermocosmetics — market is still good. So we believe that after the strange beginning of the year, the market is going to get back to a 4 percent [growth] average.”
For L’Oréal, the encouraging results to begin 2017 may also build further upon the company’s relationship with product-developing professionals in the industry worldwide. The numbers also come following their billion-dollar acquisition of skincare brands AcneFree, Ambi and CeraVe in January.
L’Oréal, analysts and the industry alike will wait anxiously for the company to announce their Quarter 2 earnings.