L'Oreal stock steadies as third-quarter beauty growth broadens

L'Oreal stock traded at EUR 447.00 on Lang & Schwarz at 12:22 CET on Thursday, November 12, 0.01 percent above the Xetra close of Wednesday, November 11. The French beauty group continues to show broad operating momentum after a strong third quarter, with growth extending across its divisions and most regions.

The Edge reported that L'Oreal generated EUR 35.33 billion in sales in the first nine months to September 30, 2026. Like-for-like sales increased 6.9 percent, while reported sales rose 7.7 percent. Third-quarter revenue reached EUR 11,561.4 million, with adjusted like-for-like growth accelerating to 7.7 percent from 6.3 percent in the second quarter.

The adjusted comparison removes the net effect of the timing of L'Oreal's IT transformation. On the unadjusted like-for-like measure, third-quarter growth was 7.2 percent, while reported growth reached 11.9 percent. The figures show that the acceleration was not limited to one business line, although changes in scope and currency also contributed to the reported result.

Four Divisions Add Momentum

L'Oreal Luxe was the largest division in the quarter, with sales of EUR 4,176.6 million and like-for-like growth of 6.4 percent. Consumer Products generated EUR 4,044.3 million and grew 4.3 percent on the same basis. Luxe benefited from fragrances, strong performance from Creed and improving results from the integrated Kering Beauté brands in North America.

Dermatological Beauty grew 12.2 percent like-for-like to EUR 1,871.6 million, while Professional Products advanced 12.1 percent to EUR 1,469.1 million. L'Oreal said its billionaire dermatology brands, Kérastase and Redken all delivered strong performances. Consumer Products remained the slowest-growing division, but the group said every global brand in the unit expanded.

Regional performance was similarly broad. Europe grew 9.9 percent like-for-like and North Asia advanced 7.8 percent, with travel retail returning to growth. SAPMENA-SSA was the fastest-growing region at 19.2 percent. Latin America was the exception, contracting 1.0 percent like-for-like as Mexico faced commercial difficulties, temporary makeup supply disruptions and retailer inventory adjustments.

Portfolio Expansion Supports Outlook

Chief Executive Nicolas Hieronimus described the quarter as exceptional and said the nine-month performance gave him confidence of another year of growth in sales and profit. The group attributed the progress mainly to product mix and volumes, while online sales also continued to expand.

L'Oreal has completed the purchase of a majority stake in Innovist, an Indian digital-first personal-care company. The group also holds a 50-year Gucci beauty licence that is scheduled to begin on July 1, 2027. These moves expand its presence in fast-growing digital and premium beauty categories, but their financial contribution will develop over time.

For investors, the results point to a more balanced growth profile than one driven solely by luxury products. Professional Products and Dermatological Beauty are growing rapidly, while Europe and emerging markets offset weaker momentum in Mexico. The Xetra comparison indicates that the current Lang & Schwarz quote is broadly stable against the previous session's close.

European investors are watching the CAC 40 as the main French market benchmark.

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