PARIS (Reuters) -Shares in L’Oreal rose more than 4% in early Friday trading after the French cosmetics giant beat expectations with a strong rise in first quarter sales on Thursday evening, allaying concerns about a slowdown in the United States.
L’Oreal shares were up 5.0% at 0745 GMT having lost 6% this year up to Thursday’s close.
“A rock solid quarter, despite concerns,” said analysts at Barclays. While L’Oreal did acknowledge a slowdown in the United States, it “comfortably surprised to the upside,” both in the US and Europe, they said.
The world’s biggest beauty company reported more than 12% sales growth in both North America and Europe, lifted by its mass market range and dermatological products, which helped offset weakness in the luxury segment.
“L’Oreal delivered a strong beat,” Bernstein analysts wrote in a note to investors.
They noted L’Oreal’s ability to shift investments in advertising and promotions to different parts of the world and across categories and demographics, enabling it to optimise global growth and make it more resilient.
(Reporting by Dominique Vidalon and Mimosa Spencer, editing by Inti Landauro and Elaine Hardcastle)
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