L’Oréal Earnings: Performance Shines, Led by Derma Skincare and Mass-Market Products

Wide-moat L’Oréal posted better-than-expected first-half results that showcased the beauty product maker’s strong brands and balanced exposure to premium and value segments globally. Revenue grew 12% and EPS up 11%, exceeding our estimates of 11% and 9%, respectively, and we will nudge up our 2023 preprint projections to incorporate the earnings update. We are maintaining our 10-year forecasts for high-single-digit sales growth and low-20s average operating margins. Shares trade in a range we'd consider fairly valued.