L'Oreal CEO Hieronimus on Earnings and Consumer Demand

The transcript discusses L'Oreal's market performance, highlighting its balanced growth across divisions and regions, with a focus on luxury products. It explores consumer behavior, noting a preference for high-quality products across all price points. The company is preparing for potential economic challenges while remaining optimistic due to the beauty industry's resilience. Supply chain issues are acknowledged, with a strong performance in China attributed to e-commerce strength.

What has been a key driver of L'Oreal's growth in recent years?

• Increase in advertising budget

• Reduction in product prices

• Focus on luxury products

• Expansion into new markets

How has L'Oreal's consumer products division performed recently?

• It has declined significantly

• It has remained stable

• It has accelerated growth

• It has been discontinued

What is a notable trend in consumer behavior post-pandemic according to L'Oreal?

• Increased demand for high-quality products

• Decrease in overall spending

• Preference for low-cost products

• Shift towards online shopping

What is L'Oreal's strategy in response to potential economic downturns?

• Reducing product lines

• Increasing prices

• Preparing for all scenarios while remaining optimistic

• Focusing solely on luxury products

What does the 'lipstick index' suggest about consumer behavior?

• Consumers buy more luxury items during tough times

• Consumers buy more lipsticks during tough times

• Consumers stop buying beauty products during tough times

• Consumers prefer online shopping during tough times

Which region has L'Oreal faced more supply chain difficulties?

• Africa

• USA

• Europe

• Asia

What has contributed to L'Oreal's strong performance in China despite lockdowns?

• Focus on luxury products only

• Reduction in product prices

• Strong e-commerce capabilities

• Increased physical store presence