L'oreal Co. (LRLCY) shares tumbled over 5% Thursday following its latest quarterly results that saw like-for-like sales miss the consensus estimate.
The company posted like-for-like sales growth of 6.9%, below the Bloomberg compiled consensus estimate of a 9.56% increase. Group total sales in the quarter came in at €10.61 billion.
North American like-for-like sales grew by 9.4% year-over-year, while Europe increased by 11.6% and North Asia fell -6.2%, well below the Bloomberg compiled consensus estimate of a 7.29% increase.
The company said the beauty market in China was "stagnating." At the same time, they also experienced other challenges, such as geopolitical tensions and inflationary pressures. Even so, it remains optimistic about 2024.
Full-year 2023 sales amounted to €41.18 billion, up 7.6% year-on-year, while like-for-like sales for the year grew 11%. L'Oreal also noted that currency fluctuations had a negative impact of -5% at the end of 2023.