L’Oréal, the world’s largest cosmetics company, reported a 2.5% increase in fourth-quarter sales, bringing total revenue to €11.08 billion ($11.9 billion). The growth fell short of analyst expectations of a 3.9% rise, marking the slowest quarterly expansion since the pandemic. The downturn was primarily driven by weaker consumer demand in China and North America, particularly affecting the company’s luxury division.

L’Oréal Luxe, which includes premium brands such as Lancôme and Yves Saint Laurent Beauty, grew by only 1%, a stark contrast to its prior 3.4% average in the first three quarters. This weakness was pronounced in North Asia, where economic uncertainty continues to dampen demand.

Despite these challenges, CEO Nicolas Hieronimus remains optimistic about 2025, pointing to a “beauty stimulus plan” that aims to reinvigorate demand. He also urged European leaders to enhance competitiveness to prevent economic divergence from the U.S.

Looking ahead, L’Oréal plans to expand its dual-sourcing strategy to mitigate supply chain risks and strengthen its foothold in emerging markets. The company remains focused on long-term innovation and sustainability to maintain its leading position in the global beauty industry.