L’Oréal: Sales, Armani Stake, and Kering Deal Impact

L'Oréal reports sales growth amid market challenges. Considers Armani stake post-Giorgio Armani's will. Kering deal, including Creed, expands fragrance presence. Focus on China & US markets.

On the stagnation of the scent classification, which rests under the empire’s slowest-growing luxe department, Hieronimus stated: “Our development in fragrances is just shy of 10 per cent. The fragrance market continues to be the fastest-growing group of appeal, in the mid-single figures.”

Fragrance Market Growth and L’Oréal’s Performance

Is one more large deal in the pipeline for L’Oréal Team? The empire, along with LVMH and EssilorLuxottica, is cited in Giorgio Armani’s will as a potential stakeholder in the business. When information on the will emerged on 12 September, L’Oréal claimed that it would offer the concept careful idea. Asked by an analyst on a phone call to offer an update, Hieronimus claimed: “It’s a bit too soon. The household is grieving and concentrating also on driving this company. The just essential thing I can verify today is that the bargain we simply performed with Kering does not avoid us from taking into consideration any of the alternatives that get on the table with Armani.”

Armani Stakeholder and Potential L’Oréal Involvement

“Generally, China has stabilised. We see a slight uptick in consumer self-confidence,” Hieronimus told experts throughout Tuesday’s earnings call. “I wouldn’t get overexcited because there are other macro challenges, work statistics, that are not as favorable. What’s still not improving is traveling retail. Traveling retail in Asia remains in negative territory, in solitary digits.” The US market, at the same time, is enhancing, Hieronimus claimed, and L’Oréal is outmatching the remainder of the beauty market, he added.

China and US Market Trends

As of Creed, which is likewise part of the Kering offer, Hieronimus claimed: “House of Creed is an attractive brand. It’s in the leading three of the particular niche scents market, which happens to be the fastest-growing part of the scent market itself. And it happens to be a sector where we are simply stood for by the collections inside our couture brand names, so we are underrepresented.”

Creed Acquisition and Niche Fragrance Market

When details on the will certainly arised on 12 September, L’Oréal stated that it would certainly offer the concept careful thought.

The US market, at the same time, is improving, Hieronimus said, and L’Oréal is outmatching the rest of the appeal market, he included.

The Kering deal consists of the right to get in a 50-year licensing contract with Gucci after its expiration with Coty; Hieronimus noted that, in light of the size of Gucci’s fashion business and the length of the license, it has the possible to “overtake Yves Saint Laurent”. The YSL charm company is not far from EUR3 billion in internet sales, according to the executive.

Kering Deal and Gucci License Potential

The total charm market has been squeezed by a post-pandemic comedown and a dip in travel retail, from which some companies are still trying to recoup. L’Oréal rivals Estée Lauder Firms (ELC) and Puig will report quarterly earnings on 30 October. LVMH’s fragrances and cosmetics department reported 2 per cent natural sales development to EUR1.9 billion in the third quarter of the year.

This comes after L’Oréal Team’s sales were up 3 per cent, from January with June. By area, North Asia sales were up 4.7 per cent, Europe was up 4.1 per cent, North America up 1.4 per cent, Sapmena-SSA up 12.2 per cent and Latin America up 4.4 per cent.

Sales Performance in Q3 2025

L’Oréal sales rose 4.2 percent on a like-for-like basis to EUR10.33 billion in the 3rd quarter of 2025, the company claimed on Tuesday. The team’s profits magazine came on the heels of a major charm take care of Kering, revealed on Sunday evening.

This comes after L’Oréal Team’s sales were up 3 per cent, from January via June. “Development was broad-based. By area, North Asia sales were up 4.7 per cent, Europe was up 4.1 per cent, North America up 1.4 per cent, Sapmena-SSA up 12.2 per cent and Latin America up 4.4 per cent.

LVMH’s perfumes and cosmetics division reported 2 per cent organic sales growth to EUR1.9 billion in the third quarter of the year.