Later last week, L’Oreal, the Clichy, Hauts-de-Seine-headquartered world’s largest cosmetics company had revealed its quarterly earnings’ report for fourth-quarter 2020 that surprisingly beat an analysts’ estimates despite a dour outlook on luxury and entertainment industry, while the French fashion giant had pegged a strong rebound in sales of makeup items in 2021 as more and more people have been preparing to get dressed and go outside with a mass-scale global pandemic vaccination campaign underway.
On top of that, L’Oreal, the owner of high-profile cosmetics and makeup brands such as Garnier, Maybelline and Lancome, had flabbergasted industry analysts with a better-than-anticipated sales growth in the fourth quarter of 2020 that outperformed almost all of its global peers in a cosmetic industry hurt grievously due to the pandemic’s fiscal and social consequences.
Despite an upbeat sales-growth in holiday quarter last year, the company remained utterly cautious while forecasting the current-quarter growth, as the French cosmetics industry monolith had forecasted that it would likely to sustain a comparable growth of 4.8 per cent over the current-quarter witnessed during the last three months of 2020.
L’Oreal Chief says sales would accelerate sharply as pandemic infections subside
Meanwhile, citing a cautious sales prospect over Q1, 2021 with many hair saloons having been closed and millions of consumers facing off a stiffer lockdown measure, the company Chief Executive and Chair Jean-Paul Agon said at a presentation of L’Oreal quarterly result that the company’s sales would accelerate sharply over the later part of the year as a quick rollout of pandemic vaccines seemingly had succeeded to subside the number of infections adding “People will be happy to go out again, to socialise.
This will be like the Roaring 20s [1920s post-war economic boom], there will be a fiesta in makeup and in fragrances. ” According to L’Oreal quarterly earnings’ report for fourth-quarter 2020, the company’s online revenues climbed to 62 per cent last year compared to a year earlier and accounted for more than a quarter of its overall sales, while the French cosmetics industry tycoon’s total sales rose to €7.88 billion in Q4, 2020, up by 4.8 per cent on a year-on-year basis.