Recently, L’Oréal CEO Nicolas Hieronimus told investors that he has revised the company’s forecast for global beauty market growth, citing challenges in the Chinese market as a significant factor.
Speaking at a JPMorgan event in Paris, Hieronimus informed investors that he now expects the global beauty market to grow between 4.5 percent and 5 percent this year, down from an earlier forecast of 5 percent. This revision comes as the beauty giant faces a stagnating market in China, which has historically been a major driver of its sales due to high demand for its luxury cosmetics.
A L’Oréal spokesperson confirmed to Bloomberg News that the flat market in China is the primary reason for the adjusted forecast. The country has been pivotal to L’Oréal’s rapid gains in recent years, with Chinese consumers being enthusiastic buyers of the brand’s premium products.
Following Hieronimus’s announcement, L’Oréal’s shares experienced a notable drop, falling as much as 5.1 percent in Paris before closing 3.4 percent lower. This decline has contributed to a total loss of 6.2 percent in the company’s stock value so far this year.
