LRLCY acquired Peel’s Salon Services, which supplies salons in 12 states in the US, in order to “offer a better service to US hair salons”. Peel’s Salon Services has net sales of about $100 million. This acquisition was added to L’Oreal’s SalonCentric division.
Third quarter sales increased 15% to €4.85 billion, which beat analysts’ estimates of €4.73 billion. Excluding currency fluctuations and acquisitions, sales increased by 5.8%. Like-for-like sales increased by 6.2%.
Jefferies and Oddo upgraded their rating of LRLCY stock due to increased stabilization in mature markets as well as increased prospects of expansion of the YSL Beauty brand.
The company has suffered from dollar weakness earlier this year. However, the dollar is currently gaining strength against the euro, which will have a positive effect on L'Oreal's earnings.
L'Oreal revenue grew 5.1% y-o-y which was below analyst estimates. L'Oreal blamed a tough North American market due to the economic slowdown in the US.