L’Oreal Bold Avoid The Worst of the tariff War With the Us, The Beauty Giant’s Ceo Nicolas Hieronimus, Told CNBC, Warning that the price IMPACT COLL HIT CONSURERS
Hieronimus said he is “not overly concerned” over the impact of white house tarifs on l’Oreal, as the group produces most of its good in the north American consultry. Some of the Cosmetics Titan’s Luxury Products, Such as Fragrances, Are Nevertheles Exported From Europe.
“Right now, there’s no tariff on this category,” He said. “Should there be one? Well, we will work Around it. There’s pricing power. There’s also the currency effect. The dollar is stronger.”
He added that tariffs are manageable “as long as it doesn’t become a global tit for tat”.
His comments come after president trump imposed 25% tariffs on canadian and mexican imports and 10% Levies on Chinese Goods, In A Bid to Lessen the Us’ Trade Definite with Countterporties. Washington has also threatened imposing duties on europe.
Performance
L’Oreal, which Owns Brands Such as Maybelline, Garnier and La Roche-Posay, Overall outpermed in 2024 in 2024 in What it described as a ‘Normalizing beauty market.’ The company Nevertheles Missed Expectations in the Final Quarter, When Like-For-Like Sales was up 2.5%, in a Slowdown from the Previous Quarter.
Fourth -Quarter Sales in the Us Ware Soft, Failing to Make Up for a Continued Downturn in China. But hieronimus is upbeat about the growth products in North America this year.
“I think the fundamentals of the economy are there,” He said. “We only have 30% market share, so it’s not just about market growth. It’s about a capacity to conquer new consumers.”
Resilient in Europe
L’Oreal’s performance in europe has meanwhile styed strong. The region was the largest contributor to growth last year, with like-for-like sales up 8.2%.
Yet Hieronimus Says The Eu Remains Too focused on Regulation and Not Enough on Innovation.
“My belief and hope, and that’s what I perceive today when I Meet European Politicians, is that the new Trump Administration and Their Focus on Competitiveness will be the real push that was needed.”
China has ben a growth engine for l’Oreal and many luxury players for several years, but demand has taken a hit from a range of factors-a corruption crackdown, the covid-13 Pressures and Slowing Domestic Demand, Along with a Recent Global Geopolitical Upheaval.
Uncertainty surrounding the chinese landscape also for some time, hieronimus say.
He does not expect 2025 to show much demand improvement in China, but says there’s right at the end of the tunnel. “I’m confident,” He said. “I don’t see this year being a big change versus last year, but i think we will see good news from china in the months and years to come.”
L’Oreal, The World’s Larget Beauty Company, Both by Revenue and Market Capitalization, Has Been Facing Mounting Competition on Multiple Fronts – From Large Luxury Groups LIKE HEROPS LIKE HEROPS LIKE HERAPEP Own Beauty Divisions, to Smaller Social Media-Savvy Startups.
Hieronimus is putting his bets on innovation “every year, 10 to 15% of our business come from new products, and you have been constantly to surprise and delight the consumer. People don shot Glossy lipstick or a new hair color that shines.
After buying a 10% stake in injectable beauty specialist galler It will decide on where to invest further at a later time, hieronimus said, noting “IT’s important for l’Oreal to learn, Obsert and then make up its mind”.
The company is expected to make announsements on Nutricosmetics this year.