The net impact of changes in consolidation — primarily the acquisitions in the U.S. of PureOlogy, Beauty Alliance, Maly’s West and Columbia Beauty Supply, and in Turkey, of Canan — was 2 percent.
“In the first quarter, we achieved globally satisfactory growth: excluding North America, where the environment was exceptionally difficult, the group achieved growth of 7.5 percent, in line with our projections,” stated Jean-Paul Agon, chief executive officer of the company.
“In North America, after an exceptional fourth-quarter 2007, we had been anticipating a lackluster first quarter,” he continued. “In fact, it turned out to be more difficult because of lower footfall in department stores and larger-than-expected inventory reductions by our distributors.”
First-quarter sales for L’Oréal in North America fell 7.2 percent to 893 million euros, or $1.34 billion. On a like-for-like basis, they dropped 3.9 percent.
“The rest-of-the-world zone continued to grow very strongly, particularly in Asia and Eastern Europe, and is fully playing its role as a powerful growth relay,” continued Agon. “In Western Europe, the start of the year is in line with our expectations in a market which remains solid.”
In the period, the rest-of-the-world zone’s business hit 1.29 billion euros, or $1.93 billion, up 12.1 percent, or 16.7 percent on a comparable basis. Of that, L’Oréal’s Asian business reached 464 million euros, or $695 million, up 13.7 percent, or 21.9 percent on a like-for-like basis. In Eastern Europe, the company registered revenues of 359 million euros, or $537.7 million, a 24.1 percent gain, or 25.9 percent growth on a comparable basis.
In Western Europe, L’Oréal posted sales of 1.94 billion euros, or $2.9 billion, up 1 percent, or 2.3 percent on a like-for-like basis.
Currency fluctuations negatively impacted L’Oréal’s sales by