L’Oréal reported an increase in sales despite “moderate” demand in China.
The Paris-based makeup group, which owns brands including Mugler and Lancome, said sales rose 11 percent in the three months to the end of September to £8.7 billion.
This was largely due to strong growth in Europe and the United States, where consumers continue to purchase their favorite lipsticks and mascaras.
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But other markets disappointed, with sales falling 4.8 percent in North Asia.
Bosses said there has been a “moderate recovery” in mainland China, and that travel retail has been particularly hard hit due to Beijing’s crackdown on “daigou” (cross-border personal shoppers who buy items overseas and then They resell them at a low price within China).
The crackdown also hampered L’Oréal’s luxury division, which includes brands such as Valentino.
China’s post-pandemic rebound has faltered as youth unemployment rates soar and the property market plummets.
But Bruno Monteyne, an analyst at Bernstein, said: “While this is a drag, all other divisions and regions made up for it.”