NEW YORK — L'Oréal finished 2025 with strong global growth and higher margins, highlighted by a better second half in the United States and ongoing momentum across mass, prestige, and dermatological channels.
The beauty giant reported full-year sales of $44.05 billion, up 4.0% on a like-for-like basis and 1.3% reported. North America sales increased by 3.4% on a like-for-like basis, with growth accelerating from about 2% in the first half to nearly 5% in the second half as market conditions improved and innovation pipelines gained momentum.
Operating margin grew by 20 basis points to 20.2%, while gross margin increased by 10 basis points to 74.3%. Earnings per share rose by 0.4% to €12.71.
U.S. Momentum Broad-Based Across Divisions
In North America, all four divisions contributed to growth.
Consumer Products increased its share in makeup and haircare, driven by new launches from L’Oréal Paris and NYX Professional Makeup. Haircare continued to be the division’s main growth driver, with innovations in repair, gloss, and styling that resonated across mass retail and drug channels.
Professional Products outperformed the market, driven by premium haircare brand Kérastase and early contributions from Color Wow. The division exceeded €5 billion in annual global sales, showing continued strength in salon distribution and omnichannel growth.
Luxe demonstrated resilience in the U.S., with fragrances leading performance. Couture brands, including Yves Saint Laurent and Prada, drove sell-through at department stores and specialty beauty retailers, supported by new launches and premium positioning.
Dermatological Beauty showed marked improvement in the second half. SkinCeuticals delivered strong growth, while CeraVe continued its recovery in the U.S., benefiting from haircare expansion and improved skincare trends in mass and pharmacy channels. The division grew 5.5% like-for-like globally and significantly outperformed the dermo-cosmetics category in sales.
E-commerce remained a key growth driver in the U.S. market, expanding at double-digit rates and accounting for more than 30% of total group sales globally.
Margin Discipline and Cash Generation
L’Oréal reported operating profit of €8.89 billion, up 2.4%, with profitability improving across most divisions. Professional Products margin rose 70 basis points to 22.9%, while Consumer Products margin increased 30 basis points to 21.4%.
Net cash flow reached €7.16 billion, up 7.8%, reinforcing the company’s balance sheet strength. The board proposed a dividend of €7.20 per share, up 2.9%.
Strategic Moves in Aesthetics and Luxury
During the year, L’Oréal increased its stake in Galderma to 20%, strengthening its exposure to the fast-growing medical aesthetics category. The company also advanced its luxury ambitions by acquiring Kering Beauté’s assets, expanding its prestige fragrance and couture portfolio.
In January, the company unveiled new beauty tech innovations at CES 2026, reinforcing its positioning as a technology-driven beauty leader.
CEO Nicolas Hieronimus said the group is optimistic about the 2026 outlook despite macroeconomic uncertainty, citing continued innovation, operational efficiency and a multi-division strategy as key levers for further U.S. and global outperformance.
For drug and mass retailers, the results reinforce beauty’s continued resilience, with growth spanning premium haircare, fragrance and dermatologist-backed skincare — categories that remain traffic and margin drivers across the U.S. retail landscape.
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