L’Oreal Sales Beat Estimates on Accelerating Growth in Luxury

PARIS, France — L'Oreal SA, the world's largest cosmetics company, reported revenue that beat analysts' estimates as sales growth accelerated at its luxury division and in North America.

Fourth-quarter sales gained 4.2 percent on a like-for-like basis, Paris-based L’Oreal said Thursday in a statement after markets closed. Analysts predicted a 3.7 percent increase, based on the median of 20 estimates.

Demand for luxury cosmetics such as Giorgio Armani scents rose as market turbulence that held back growth in Asia over the summer proved temporary. Stronger sales in the region also helped compensate for a slowdown in Brazil and a lackluster performance in Western Europe, where L'Oreal is struggling to win market share in its consumer-products division.

Full-year operating income rose 13 percent to 4.39 billion euros, matching analysts’ estimates. Total sales advanced 12 percent to 25.3 billion euros, slightly exceeding the 25.1 billion-euro estimate. Like-for-like revenue rose 3.9 percent.

The stock fell 2.9 percent in Paris trading Thursday, extending this year’s decline to 5.5 percent. The results were announced after markets closed.

The maker of Urban Decay makeup said it expects to grow faster than the global cosmetics market, which it estimates expanded about 3.5 percent in 2015.

By Andrew Roberts; editors: Matthew Boyle, Paul Jarvis.