L’Oreal He could avoid the worst tariff war with the US, CNBC told CNBC Executive Director Nicolas Hieronimus, warning that an impact on the price can still hit consumers
Hieronyms said he was “not overly worried” about the influence of the White House tariff on L’Oreal, because the group produces most of its goods sold in the United States -U North American country. Some of the luxury products of Titan cosmetics, such as the smell, are still exported from Europe.
“There’s no tariff at this category right now,” he said. “Should there be?
He added that the tariffs were managed “until it became a global tat for the dad.”
His comments come after President Trump has imposed 25% of tariffs on Canadian and Mexican imports and 10% levy on Chinese goods, an attempt to reduce US trade deficit with colleagues. Washington also threatened to impose duties of Europe.
Performance
L’Oreal, who owns brands such as Maybelline, Garnier and La Roche-Posay, surpassed in total in 2024 in what he described as a “normalizing beauty market”. The company, however, missed expectations in the last quarter, when sales similar to 2.5%, in slowdown in the previous quarter.
The sale of the fourth quarter in the US was soft, failed to make up for the continuation of the fall in China. But with hieronyms this year is optimized due to the prospect of growth in North America.
“I think the basics of the economy are here,” he said. “We only have 30% of the market share, so it is not just a market growth. It is a capacity to win new consumers.”
Resistant in Europe
The effectiveness of L’Oreal in Europe, meanwhile, remained strong. The region was the biggest contribution to the growth last year, with sales similar to 8.2%.
Still, Hieronimus says the EU is still focused on regulation and insufficient innovation.
“My belief and hope, and this is what I notice today when I meet European politicians, is that the new Trump administration and their focus on competitiveness will be the right pressure that was needed.”
China has been growing engine growth for many luxury players for several years, but demand has hit a series of factors-corruption action, a Coid-19 pandemia, an inflation pressure and a slowdown of domestic demand, along with a recent global geopolitical turnaround.
Insecurity around the Chinese landscape could be kept for a while, he says with a hieronym.
He does not expect that 2025 will show a lot of improvements of demand in China, but says that at the end of the tunnel is light. “I’m convinced,” he said. “I do not see that this year is a big change compared to last year, but I think we will see good news in China for months and years to come.”
L’Oreal, the world’s largest cosmetic company, both in revenue and market capitalization, faced high competition on multiple fronts – from major luxury groups such as Hermes or Kerring, which begin their own cosmetic divisions, to smaller startups on social media.
Hieronimus puts its bets on innovation “Every year, 10 to 15% of our business comes from new products, and you must constantly surprise and delight the consumer. People do not tell you that they need a new shiny lipstick or a new hair color that shines. They need to stimulate them. The demand should be stimulated.”
After buying a 10% stake in the Galderm’s injection expert, L’Oreal said he took a position in clinics in North America and China to learn more about the aesthetics market. He will decide whether to invest in a further time, he said to the hieronyms, noticing that “it is important that L’Oreal learns, observes and then decides.”
The company is expected to announce the Nuticosmetics announcements this year.
