Business Maverick: L’Oreal Sales Slump as Makeup Becomes Pointless During Lockdowns

L’Oreal’s in the three months through June dropped 19% on a comparable basis, the French cosmetics company said in a statement Thursday. Analysts had expected a 14% decline.Users of makeup and perfume were less inclined to spend money on brands such as Maybelline New York since there were fewer occasions for social interaction during lockdowns. L’Oreal’s professional division also took a hit from the shutdown of hairdressers.

“We approach this second half with lucidity, confidence and resolve – lucidity because the global health crisis is unfortunately not over,” Chief Executive Officer Jean-Paul Agon said in the statement, predicting that “e-commerce will continue to get stronger.”Separately, Agon told Le Figaro in an interview that he expects the second half of the year to be “much better” than the first, predicting “slight growth” in sales.

L’Oreal’s skincare products continued to perform well in the second quarter, with a 4.3% growth rate in its active cosmetics division. This unit, which sells dermatological brands such as La Roche-Posay, benefited from the fact that pharmacies and drugstores, considered essential during the pandemic, remained open to shoppers.

Online sales for the cosmetic giant’s products grew 65% in the first half, in a further sign the pandemic is accelerating a digital shift among retailers worldwide.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Business sees long and hard road for SA’s economic recoveryBusiness for SA has warned that the country’s economic recovery could take two years or longer because the economy was already weak at the start of 2020 and before the highly contagious virus was imported.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Stocks Mixed Before Fed; Treasuries Keep Advance: Markets WrapAsian stocks struggled for a clear direction as investors awaited the conclusion of the Federal Reserve’s policy meeting. Treasuries held overnight gains and the dollar steadied.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Canon Plunges Most in Eight Years After First Quarterly LossCanon Inc. slid to a two-decade low after reporting its first quarterly loss, as the Japanese icon struggled with potentially the worst global downturn since the Great Depression.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK ANALYSIS: Dollar’s diminishing safe-haven status is a benefit to emerging marketsInvestors have been rushing to the sanctuary of gold and alternative safe-haven currencies instead of the dollar, which reached a 22-year low. Low US bond yields, political uncertainty ahead of the elections and concern about the difficulties the US is having in getting the pandemic under control are all weighing on the greenback.
Source: dailymaverick - 🏆 3. / 84 Read more »