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3 months ago
Beauty Giants Diverge: L'Oréal Soars, Estée Lauder Stumbles (Apr 7, 2025)
The latest earnings from the world’s top beauty houses reveal a widening performance gap. L’Oréal just posted record-breaking results, while Estée Lauder slipped into an operating loss, reflecting stark differences in product strategy and geographic diversification.L’Oréal’s balanced portfolio across luxury, consumer, and dermocosmetics segments helped it deliver its best year ever in 2024, with €43.5 billion in revenue and €8.7 billion in operating profit. Growth was particularly strong in its consumer (+5%) and dermocosmetics (+9%) divisions, which helped offset slower sales in Asia.In contrast, Estée Lauder is facing mounting challenges. With 80% of its portfolio concentrated in luxury and roughly a third of its sales tied to China, the company struggled amid weakened Chinese demand. Full-year sales fell by $2.1 billion YoY to $15.6 billion, and the company swung from profit to loss.While L’Oréal has leveraged steady demand in Europe and the U.S., along with investments in beauty tech, Estée Lauder has yet to replace its past blockbuster products like the “brown bottle” serum that once drove duty-free sales. Without a diversified product mix or a more balanced regional footprint, market sentiment suggests Estée Lauder’s recovery may be slow and uncertain.[Compliance Note]All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.
