financial
financial

L'Oréal Lays Out 2009 Game Plan

Higher ad spending, job cuts part of strategy.



“We are confident in the L’Oréal business model,” continued Liard. “The company will increase its margin in the long term and will increase sales.”

Another analyst found L’Oréal’s 2008 growth to be “a bit disappointing, especially in the U.S. I am still somewhat concerned that, even excluding the luxury and professional divisions, L’Oréal is underperforming a number of its peers, including Beiersdorf and Unilever.

“I was surprised by the low volume number, although that is likely mainly from luxury, and am wondering what they can do to reinvigorate that,” he said. “With L’Oréal looking more at affordability, you also have to wonder what the combination of the two will mean for total organic growth going forward. It’s early days to talk about margins, but beyond pressure from collapsing volumes in luxury, there are a number of positive factors at play, notably lower input costs and continued cost control.”

On Tuesday, L’Oréal stock closed up 0.59 percent to 53.17 euros, or $66.84 at current exchange.

 

 

Page:  « Previous
VIEW ARTICLE IN ONE PAGE
load comments

ADD A COMMENT

Sign in using your Facebook or Twitter account, or simply type your comment below as a guest by entering your email and name. Your email address will not be shared. Please note that WWD reserves the right to remove profane, distasteful or otherwise inappropriate language.
News from WWD
Newsletters

Sign upSign up for WWD and FN newsletters to receive daily headlines, breaking news alerts and weekly industry wrap-ups.

LatestPublications
getIsArchiveOnly= hasAccess=false hasArchiveAccess=false