L'Oreal reassures with Q1 growth, shares jump

KOSE Holdings

19/04/2024 08:11

** Shares in L'Oreal  OREP.PA  rise about 5% after the
French cosmetics giant beat expectations on Q1 sales as
mass-market makeup outshone luxury
    ** Q1 sales rise 9.4% to 11.24 bln euros ($11.95 bln), above
consensus expectations of 6.1% cited by Jefferies
    ** Stifel says the biggest positive surprises come from
Europe and Consumer Products, while North Asia and Luxe are not
worse than feared
    ** RBC notes Q1 growth materially beats expectations even
when adjusted for a positive one-off from IT systems change and
insurance
    ** "We anticipate a strongly positive share price reaction,"
Stifel says, as investors have been cautious so far due to U.S.
data softness, a warning from ULTA  ULTA.O , and weak cosmetics
retails sales data in China
    ** Between ULTA's warning and Tuesday's close, L'Oreal
shares lost about 3.7% in value, before paring the losses to
1.7% at Thursday's close
    ** "We think the market trends suggest the worst is over (in
Asia)," J.P.Morgan says, which should give some reassurance to
Shiseido  4911.T  and Kose  4922.T 
    ** The stock is heading for a best day in 15 months if gains
hold

($1 = 0.9406 euros)

 (Reporting by Piotr Lipinski)
 ((piotr.lipinski@tr.com))