L’Oreal posts fastest quarterly sales growth in two years as demand holds strong

L’Oreal’s first-quarter sales accelerated at the fastest pace in two years, a sign that beauty spending is proving unusually durable even as households navigate a shakier economic backdrop. The world’s largest cosmetics company said sales reached 12.15 billion euros, up 3.6% reported and 7.6% like-for-like, with adjusted like-for-like growth of 6.7%, a rate it said was well ahead of the global beauty market.

The numbers give fresh evidence for the so-called lipstick effect, but not in a simplistic way. L’Oreal chief executive Nicolas Hieronimus said Europe was the clearest example of the pattern, as consumers kept buying beauty products to feel better in difficult times. That resilience was visible across the portfolio: Professional Products and Dermatological Beauty both grew in double digits, fragrances and hair drove growth, and skin care began to benefit from a stronger innovation push and a recovery in Asia. The company also said its recovery in the United States and China, which began in the second half of 2025, continued into the first quarter of 2026.

Europe was the number one contributor to growth, while emerging markets posted double-digit gains and e-commerce grew in double digits as well, led by emerging markets and Europe. L’Oreal said luxury recovery was confirmed and was boosted by China, underscoring that demand is not confined to one region or one kind of shopper. The comparison with a year earlier was also favorable: first-quarter 2025 sales were 11.73 billion euros, with 3.5% like-for-like growth.

The report also showed where the model remains vulnerable. L’Oreal said the Middle East conflict affected March travel retail and business in the United Arab Emirates, with the impact potentially lasting depending on how long the conflict continues. But the region makes up less than 3% of sales, and Hieronimus described the effect as “absolutely manageable,” making clear the hit is limited relative to the company’s broader footprint.

L’Oreal ended the quarter by pressing ahead with expansion. On March 31, it completed the acquisition of Kering Beauté, including the House of Creed and 50-year exclusive licenses for Bottega Veneta and Balenciaga beauty products. It also said it received the 2026 World’s Most Ethical Companies recognition from Ethisphere for the 17th time, reinforcing a premium brand message that still seems to resonate with shoppers who may trade down elsewhere, but are not giving up small luxuries that feel worth keeping.