The french company L'Oreal is strongly confirmed that it's no good to scrimp on beauty, though consumers seem to differ in opinion.
The Paris-based group said on Thursday that while it was growing faster than the market, business, particularly in luxury cosmetics and professional hair products, remained difficult and trends were unchanged in most regions.
"We don't see changes in consumer demand in North America and in Europe," L'Oreal Chief Executive Jean-Paul Agon told analysts during a conference call. "There is no restocking in Europe or anywhere."
L'Oreal, the maker of Lancome creams and Yves Saint Laurent lipstick, had sales of 4.23 billion euros ($6.29 billion) in the three months to Sept. 30, marking a year-on-increase of 0.8 % on a comparable basis and a 0.7 % drop on a published basis.
L'Oreal's return to growth in the third quarter on a like-for-like basis was helped by a 5.9 % rise in consumer products but blighted by a 6 % drop in luxury sales and a 1.4 % decline in revenues from hair salons.
Agon said he did not expect appetite for luxury products to pick up by the end of the year but comparative figures with last year would be easier.
He added that L'Oreal was opened to acquisitions if they fitted the group's strategy and it was "studying every opportunity in the world."
L'Oreal shares, which have gained 13 % since the beginning of the year, closed up 1.36 % at 71.30 EU, according to Reuters report.
"We should use shock therapy to sober up the Americans. In this case, the Americans will speak about the need to resume dialogue. There is no other option"
The United States is concerned about the current crisis in the relations with Russia and suggests returning to reasonable policies to avoid a nuclear war