L'Oréal CEO Discusses 2025 Outlook, Tariffs, and Travel Retail Evolution

L'Oréal CEO Nicolas Hieronimus shared his outlook for 2025, including the possible impact of US tariffs. The company expects the impact to be less than 40 basis points and has built inventory and considered raising prices to offset the impact. Hieronimus also discussed the evolution of travel retail, stating that the company is watching for the dust to settle on bilateral discussions and is not giving up on convincing European authorities to resolve the issue.

L'Oréal CEO Nicolas Hieronimus recently provided insights into the company's outlook for 2025, including the potential impact of U.S. tariffs. The company expects the tariffs to have a manageable impact, with the potential hit to sales growth estimated at less than 40 basis points [1].

Hieronimus highlighted that L'Oréal has built sufficient inventory and is considering raising prices to mitigate the impact of tariffs on luxury fragrances, which are primarily manufactured in Europe [2]. The company is also planning for potential tariff increases in the second half of this year, which could help offset the impact on its 2025 results [3].

Regarding the U.S.-EU trade deal, Hieronimus noted that the company is waiting for the dust to settle on ongoing bilateral discussions and is not giving up on trying to convince European authorities to negotiate exemptions for cosmetics [3].

In terms of market growth, Hieronimus reported that the beauty market has been gradually accelerating, with the first half of 2025 showing a clear acceleration from the first quarter, driven by strong performance in North America and emerging markets [3]. The company's sales in the first half of 2025 came in at 22.47 billion euros, up 1.6 percent on a reported basis and 3 percent in like-for-like terms [3].

References:
[1] https://finance.yahoo.com/news/loreal-posts-2-4-rise-160740853.html
[2] https://www.newsmax.com/finance/streettalk/consumer-goods-tariffs/2025/07/31/id/1220762/
[3] https://wwd.com/beauty-industry-news/beauty-features/loreal-ceo-talks-2025-outlook-us-tariffs-travel-retail-1238016483/