L’Oréal beats expectations with China growth, Kering stagnates
L’Oréal outperformed expectations with faster-than-anticipated growth driven by China and professional segments, while Kering reported stagnant revenue and a decline in Gucci sales. L’Oréal’s stock rose approximately 10% after hours, while Kering’s fell 5%.
L’Oréal outperformed expectations with faster-than-anticipated growth, driven by strong performance in China and professional customer segments (hairdressers) which grew over 10%. The dermatology business also grew over 10%. The stock rose approximately 10% after hours. In contrast, Kering, the parent company of Gucci, reported stagnant revenue of nearly 3.5 billion euros. Gucci revenue shrank by 6%, primarily due to weakness in Japan and China. While Saint Laurent, Bottega Veneta, and Brioni performed positively, and the jewelry division grew by about 10%, the main fashion and leather goods segment shrank more than expected. Kering’s stock fell 5% after hours.