Earnings

L'Oreal shares surge on encouraging China momentum

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Beauty industry immune to economic slowdowns, L'Oreal CEO says

Shares of cosmetics maker L'Oreal rose more than 6% early on Wednesday, a day after reporting its biggest quarterly jump in sales in more than a decade buoyed by demand from Asia.

The maker of Lancome cosmetics defied fears of a slowdown in mainland China by beating revenue forecasts by a wide margin in an encouraging sign for peers selling high-end skincare products, such as Clinique owner Estee Lauder.

"Growth in luxury (cosmetics) was fantastic," analysts at Bernstein said in a note on L'Oreal.

The French firm did highlight weak spots, however, including in the United States, where make-up sales are slowing.

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Seeing best growth in more than 12 years as Asia keeps booming, L'Oreal CEO says