L’Oreal posted an increase in sales despite ‘dampened’ demand in China.
The Paris-based make-up group, which owns labels including Mugler and Lancome, said sales rose 11 percent to £8.7 billion in the three months to the end of September.
This was largely due to strong growth in Europe and the US, where consumers continue to purchase their favorite lipsticks and mascaras.
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But other markets disappointed, with sales in North Asia falling 4.8 percent.
Bosses said there is a ‘muted recovery’ in mainland China, with travel retail particularly hit by Beijing’s crackdown on ‘daigou’ – cross-border personal shoppers who buy items abroad and then resell them cheaply in China.
The measures also hampered L’Oréal’s luxury division, which includes brands such as Valentino.
China’s post-pandemic recovery is faltering as youth unemployment rises and the real estate market collapses.
But Bernstein analyst Bruno Monteyne said: “While that is annoying, all other divisions and regions have made up for it.”