L’Oréal outperformed the global beauty market for the first six months of its fiscal year ended 30 June with sales reaching €23.77 billion. This represents adjusted like-for-like growth of +6.5%.
The beauty powerhouse delivered an increase across every division and region, with gains in both volume and value supported by a favourable product mix.
The group said its travel retail business remained affected by the continued challenges in Mainland China [see sidebar below] with recovery expected this financial year. Nevertheless, its North Asia business outperformed the overall market during the first six months of 2026.
Gross margin increased by 10 basis points to 74.8%, while operating margin reached a record 21.3%, up 20 basis points despite increasing brand investment by 70 basis points. Net profit excluding non-recurring items rose +4.7% to €3.96 billion.
L’Oréal also confirmed its recently announced 50-year exclusive worldwide beauty licence for Gucci, which will take effect 1 July 2027, subject to regulatory approvals.
“L’Oréal delivered a strong first half,” commented L’Oréal CEO Nicolas Hieronimus. “At +6.5% adjusted like-for-like growth, L’Oréal maintained its strong momentum and expanded its outperformance of the global beauty market.
“Growth – broad-based across all categories, divisions and regions – was fuelled by two main engines: the seamless execution of our innovation strategy and our market-beating growth in ecommerce, the industry’s most dynamic channel.
“Our virtuous P&L was on full display,” he continued. “Boosted by volume growth and strong mix improvement, our gross margin continued to expand. This, coupled with our ongoing focus on cost control, allowed us to increase our brand fuel by 70 basis points and deliver a record first-half operating margin of 21.3%.
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On the record with Nicolas Hieronimus
On travel retail and North Asia: “We expect a return to normal in travel retail Asia over the course of the second half, especially in the fourth quarter.” On growth engines: “Growth – broad-based across all categories, divisions and regions – was fuelled by two main engines: the seamless execution of our innovation strategy and our market-beating growth in ecommerce” On the dopamine effect of beauty: “The grimmer the economic and geopolitical headline, the more consumers crave an affordable feel-good treat, or as I like to call it, the dopamine effect of beauty.” On strict cost control: “Boosted by volume growth and strong mix improvement, our gross margin continued to expand. This, coupled with our ongoing focus on cost control, allowed us to increase our brand fuel by 70 basis points and deliver a record first-half operating margin of 21.3%.” On the Gucci acquisition: “Gucci is one of the most iconic brands in luxury, and we have an unrivalled track record of turning beauty licenses into success stories.” On the power of the L’Oréal portfolio: “We are a unique blend of luxury, of dermatology, of Consumer Products, of tech, of professional services, and it’s all about beauty, but beauty on steroids.” |
“As we head into the second half, we are confident that demand for beauty remains strong. And we believe we are uniquely well equipped to continue outperforming the market and, despite the current context, achieving another year of growth in sales and profit.
“L’Oréal is truly one of a kind,” Hieronimus added. “Our historical brands are growing strongly and our portfolio keeps getting stronger thanks to recent additions, including Kering Beauté. Our innovation engine is firing on all cylinders – and AI will help it maintain its pace.
“Our teams on the ground keep leveraging fast-shifting distribution patterns – conquering online with digital excellence while creating exceptional brand experiences offline. This makes us better positioned than ever to keep winning in beauty.”
Regional performance
North Asia posted adjusted like-for-like growth of +4.6%, with China remaining the principal growth engine as the beauty market continued its gradual recovery.
The Luxe Division was the largest contributor to regional growth, while Dermatological Beauty and Professional Products both recorded double-digit gains. Despite continued headwinds in travel retail linked to Mainland China, the company said it continued to outperform the channel overall.
Commenting on L’Oréal’s North Asia recovery, Hieronimus said: “North Asia will continue to support growth. The recovery in China continues. It is driven by Luxe, which clearly plays to our strength. In addition, we expect a return to normal in travel retail Asia over the course of the second half, especially in the fourth quarter. We are more ready than ever to keep winning in the long run.”
Stabilisation and premiumisation in Mainland China
After a challenging end to 2025, when North Asia travel retail was disrupted by changes to Mainland China’s airport duty-free retailers [from 51% CDFG-controlled Sunrise Duty Free to CDFG and Wangfujing Duty Free in Beijing and from Sunrise to CDFG and Avolta in Shanghai] and the suspension of the Sunrise Duty Free app, the region returned to growth in the first half of 2026. Speaking to analysts, L’Oréal Chief Executive Officer Nicolas Hieronimus shared his assessment of China’s recovery and the outlook for the market. Hieronimus said: “In China, we have seen the market stabilising at around +2% over the last quarters. The good thing is there’s been a shift back to more premium. The mass market has turned negative, slightly negative. Whereas, whether it’s the L’Oréal Dermatological Beauty or the L’Oréal Luxe, markets are close to a 7% growth, which is much better than what it used to be.”  The gradual recovery of China’s beauty market is being driven not only by improving consumer confidence but also by a renewed appetite for premium products. Hieronimus explained: “I would say that Chinese consumer confidence is improving. The stock markets have been better. There’s a big tech growth and hype in China, I feel that at least consumers are a bit more eager to spend their money on premium products. We bet on a continuation of this over the second part of the year. “Clearly, it plays to our strengths,” he continued. “We have the acceleration, in Chinese terms, of the more affordable brands – CeraVe and La Roche-Posay – but really a striking performance of SkinCeuticals. “We were in a very negative combination. If you look a year back, which was mass growing and all the Chinese brands growing, we were fighting with our other divisions, here it’s a reverse. Many Chinese brands are declining steeply. “China, the biggest skincare market in the world, is going back to growth. L’Oréal outperforming in the Chinese market is clearly a contributor with brands like Lancôme and Helena Rubinstein doing very well in China. Luxe is back to positive above its markets, whereas CPD is slightly behind the market.” |
South Asia Pacific, Middle East, North Africa – Sub-Saharan Africa (SAPMENA-SSA) was L’Oréal’s fastest-growing region, posting adjusted like-for-like growth of +13.8%.
Europe recorded adjusted like-for-like growth for the half year of +6.1%, with all countries and divisions contributing, while North America increased +6.7%, supported by innovation, digital expansion and strong retail partnerships.
Latin America delivered adjusted like-for-like growth of +5.2%, led by double-digit performances in Brazil and the Andean region.
Performance by division
Professional Products was once again the group’s strongest-performing division, delivering like-for-like growth of +11.6%. The rise was driven by continued premiumisation in haircare, with key launches including Kérastase Gloss Absolu Crème, Redken Acidic Grow Full and L’Oréal Professionnel Keratin Alpha Sleek.
Dermatological Beauty followed closely with a like-for-like increase of +10.6%, fuelled by continued momentum from La Roche-Posay, CeraVe and SkinCeuticals.
L’Oréal Luxe recorded adjusted like-for-like growth of +5.1%, advancing at twice the pace of the global selective beauty market. Fragrances remained the standout category, supported by Prada Paradigme, Emporio Armani, Yves Saint Laurent Libre, MYSLF and Valentino Born in Roma. The division also benefitted from accelerating skincare sales and the addition of the Gucci beauty licence to its long-term portfolio.
Consumer Products delivered an adjusted like-for-like uplift of +4.3%. L’Oréal Paris remained the principal growth driver, while haircare continued to outperform through innovations including Elvive Collagen Lifter and Garnier Fructis Diamond Sleek.
L’Oréal Group Chief Financial Officer Christophe Babule said: “With growth of +15.6%, haircare was the most dynamic category. Each division contributed strongly, growing in double digits. Fragrances maintained their double-digit pace at +10.3%, with strong contributions from Prada, Valentino and Aesop.
“Skincare accelerated strongly to +5.8% as Dermatological Beauty maintained its double-digit rhythm and Luxe gradually improved. Hair colour advanced +3.5%, driven by consumer products. Professional products gradually accelerated.”
Dopamine effect of beauty
L’Oréal is optimistic about its outlook and the future of the beauty market, particularly on what Hieronimus described as the feel-good effect of beauty.
He explained, “The grimmer the economic and geopolitical headline, the more consumers crave an affordable feel-good treat, or as I like to call it, the dopamine effect of beauty.
“Beauty runs on two engines, dopamine or pleasure, and health. Feel good and live well. Dopamine is beauty as indulgence, a scent you love, a texture you enjoy. Health is beauty as wellness, a quest for longevity and skin rejuvenation.
“L’Oréal is well-positioned to fire on both engines, and there is no other company that can do that. We have decades of olfactory science and texture innovation to fuel the indulgence of beauty at scale.”
Looking ahead
Offering his outlook for the year ahead, Hieronimus said: “In the full year, we expect the global beauty market to grow somewhere between +4.5% and +5%, and we expect to keep outperforming this market.”
He added that L’Oréal’s Beauty Stimulus Plan would remain a key growth driver, with the group continuing to roll out launches introduced over the past 12 months alongside a further pipeline of innovations across all four divisions.
“The breadth of our portfolio allows us not just to seize all those opportunities, but to amplify them across categories, channels, geographies and price points. L’Oréal is truly one of a kind to me. We are a unique blend of luxury, of dermatology, of consumer products, of tech, of professional services, and it’s all about beauty, but beauty on steroids.” ✈
