Published by Global Banking & Finance Review®
Posted on July 29, 2025
3 min readLast updated: January 22, 2026
Add as preferred source on GoogleL'Oreal aims for tariff exemptions amid US market recovery, impacting sales strategy. CEO Nicolas Hieronimus discusses potential price changes.
By Dominique Patton
PARIS (Reuters) -L'Oreal <OREP.PA> warned on Tuesday that the EU's trade deal with the U.S. would be costly and that the cosmetics maker would push for tariff exemptions, even as it reported improving demand for its makeup and hair products in the key U.S. market.
The French group, whose brands include Maybelline makeup and CeraVe skincare, posted a 2.4% rise in second-quarter sales, missing forecasts as growth in Europe slowed more than expected and demand at travel outlets in Asia was subdued.
However, a recovery in the United States, a small rebound in China, and double-digit growth in emerging markets helped to offset the slower rise in Europe, which accounts for a third of sales but is benefiting less as inflation eases.
Sales in April-June totalled 10.74 billion euros ($12.38 billion), up 2.4% on a like-for-like basis from a year earlier, but undershooting the 2.9% growth seen in a Visible Alpha consensus estimate cited by Jefferies.
Underlying growth, after stripping out the impact of phasing in a new IT system, was 3.7%, the company said.
"I don't think it's a good deal," CEO Nicolas Hieronimus told Reuters of Sunday's framework deal imposing a 15% tariff on U.S. imports of a range of EU goods, including cosmetics.
"We're going to be writing to all the European leaders and negotiators to see whether there's a loophole we could benefit from, because in the end it's going to be costly," he said.
L'Oreal, which imports around 30% of its U.S. sales, could raise prices and move more production to the country where it has four factories, but is waiting for further negotiations between U.S. President Donald Trump and other nations to be finalised before making decisions, he added.
The company expects a 35 to 40 basis points hit to 2025 sales growth, he said.
Jefferies analysts expect perfume sales in the U.S. to slow in the second half after tariffs are implemented, though Hieronimus said L'Oreal's fragrance sales were currently growing by double-digits, compared to 7% for the broader market.
There is "some pricing power on fragrances, but we have to also consider the elasticity of the demand," he added.
Growth in the U.S. picked up in the second quarter, thanks to "a bit less uncertainty", as well as new makeup and haircare launches, Hieronimus said.
China, however, is "not really rebounding", although L'Oreal recorded sales growth there for the first time in a year.
($1 = 0.8674 euros)
(Reporting by Dominique PattonEditing by Mark Potter)
Emerging markets are countries with developing economies that are becoming more integrated into the global economy, often characterized by rapid growth and industrialization.
Corporate strategy refers to the overall plan and direction a company takes to achieve its goals, including resource allocation and competitive positioning.
Retail trade involves selling goods or services directly to consumers, typically through physical stores or online platforms.
Innovation in business refers to the process of developing new ideas, products, or services that improve efficiency, effectiveness, or competitive advantage.
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