L’Oreal sees post-pandemic ‘roaring 20s’ driving cosmetics rebound

‘People will be happy to go out again, to socialise,’ he said at a presentation of the company’s results. ‘This will be like the Roaring 20s, there will be a fiesta in makeup and in fragrances,’ he said, referring to the 1920s post-war economic boom, when people wore daring fashions and partied.

He said strong sales in China, where many COVID-19 restrictions have been eased, offered a sneak preview of what the rest of the world could expect. L’Oreal said its sales in China were up 27 per cent in 2020.

L’Oreal’s shares were up 2.9 per cent on Thursday, among the strongest performers on France’s benchmark CAC-40 index.

Pandemic store closures have hit luxury retailers and beauty companies, with make-up sales affected especially.

But cosmetics groups have benefited from demand for skin care products and pampering treatments for use at home, and some have tapped into an increase in online shopping.

L’Oreal’s online revenues jumped 62 per cent in 2020 as a whole, reaching more than a quarter of total sales. In China, its online sales grew 56 per cent during 2020.

The company reported on Thursday that total sales reached 7.88 billion euros ($9.5 billion) in October to December, flat from last year on a reported basis but up by 4.8% on a like-for-like basis, excluding currency effects and acquisitions, with the numbers beating forecasts.