L’Oréal reported 5.3% growth in Q2, offsetting weak China sales with strength in North America, Europe and emerging markets.

What happened in China?

Sales of lipstick and skincare in mainland China declined in the quarter, reflecting weak consumer confidence and a tough comparison period. While travel retail in offshore hubs such as Hainan improved sequentially, the domestic market remained challenging.

Where growth held up

Emerging markets, Europe and North America offset a chunk of the China weakness. The Consumer Products division (Maybelline, L’Oréal Paris) still grew mid-single digits, and Luxe managed modest like-for-like growth thanks to double-digit gains in North America and faster growth across emerging regions.

Is the “lipstick effect” fading?

During and after the pandemic, beauty showed unusual resilience as shoppers splurged on smaller luxuries. That trend persists—but China’s softer macro backdrop is a reminder that even resilient categories can slow when confidence dips.

Outlook

CEO Nicolas Hieronimus reiterated that L’Oréal aims to outperform the market, even as the company acknowledges an environment marked by economic and geopolitical tensions. A prolonged slowdown in China remains the primary risk, but diversified growth in other regions provides a cushion.