Cosmetics group L’Oréal reported accelerating China sales even as most European luxury goods and lifestyle companies have suffered pandemic-related declines.
L’Oréal said make-up sales in China were rebounding as the group reported overall sales for the three months to June came in at 9.3 billion euros ($9.46 billion), an increase of 13% on a like-for-like basis.
Many luxury goods brands from the West have seen a drop in sales in China since mid-March due to store closures and restrictions on movement.
But L’Oréal grew revenues by 13% over the quarter, outpacing a decline of around 6% in the market, thanks to a lift from e-commerce sales, chief executive Nicolas Hieronimus said. “Makeup is really bouncing back.”
Bag maker Hermès also rebounded strongly on the back of China sales.
Robust improvement in Europe and the US in the three months to June 30 helped Hermès to post 2.7 billion euros ($2.76 billion) in sales, a 19.5% rise at constant exchange rates, which strips out currency fluctuations.
Prada Asia Sales Offset China Dip
Luxury fashion group Prada said higher sales in the first six months of the year in Japan and South Korea as well as Europe and the Americas offset declines in China.
Asia-Pacific sales overall declined by 7% but the key Chinese market improved since store re-openings in June, Prada said.
Kering, the owner of Gucci, and Italy’s Moncler have benefited from post-pandemic demand for luxury goods as socialising resumes and shoppers spend savings but the lockdowns in China temporarily put a brake on progress.
Sales at French luxury group Kering’s top brand Gucci rose by just 4% in the second quarter, the group said on Wednesday, as a new round of lockdowns weighed on revenues in the key Chinese market.
Overall sales for Kering, which is also home to fast-growing labels Saint Laurent and Bottega Veneta, came in at 4.97 billion euros ($5.03 billion), up 12% on a comparable basis.
- Reuters, with additional editing by George Russell