In sales figures, L’Oreal comes up smelling like roses

L’Oreal’s year-end sales growth surged past expectations on the strength of highend perfumes and skin-care brands that defied the economic slowdown in China.

Fourth-quarter sales increased 7.7 percent on a comparable basis, the Paris-based maker of Garnier shampoo and Maybelline makeup said Thursday after the close of markets. That beat analysts’ average prediction of 6.5 percent.

L’Oreal’s unit that sells premium skin-care brands like Biotherm and the luxury division selling Lancome cosmetics each grew at double-digit rates, quelling concerns that a slowing Chinese economy will hit consumption of high-end beauty products. Sales in China contributed to the best performance in 40 quarters for the world’s biggest maker of beauty products, according analysts led by Richard Taylor at Morgan Stanley.

“The strong Chinese consumer continues to drive growth with no signs of a slowdown and L’Oreal is capturing its fair share,” the analysts said in a note to clients.

The shares were little changed in Paris.

Fabrice Dimier / Bloomberg News A customer tries out L’Oreal products in Paris. L’Oreal SA, the world's largest cosmetics maker, said second-quarter sales increased 10 percent as shoppers in Eastern Europe and Asia bought more skin creams and makeup and revenue recovered in North America.