Global beauty leader L'Oreal Co. reported a 7.6% increase in first-quarter organic sales, significantly exceeding market expectations of approximately 3%. Analysts at Barclays described its core growth as "exceptionally impressive."

The stock surged as much as 10% during the trading session and is currently up 9%, potentially marking its largest single-day gain since November 2008.

Quarterly sales reached 121.52 billion euros (about 143 billion U.S. dollars), with an organic growth rate of 7.6%, far surpassing market projections of 3%-4%. Growth excluding one-time items stood at 6.7%. As of 10:51 AM Central European Summer Time, the share price was 373.55 euros, up 28.65 euros, or 8.31%.

"We have not only outperformed the still vibrant beauty market but also accelerated our market share gains globally," said Nicolas Hieronimus, CEO of L'Oreal. "Our leadership in e-commerce allows us to double down on this winning channel, achieving remarkable results across all regions, particularly in emerging markets," he added. "The recovery that began in the second half of 2025 in the United States and China continues to progress, with our performance in both countries surpassing market levels."

Barclays analysts noted, "Its core growth is exceptionally impressive. The global beauty market continues to grow at a 4% pace with no signs of slowing. Even during periods of market volatility, L'Oreal's 'beauty stimulus plan' has helped it achieve stronger share growth."

Year-over-year growth by business division was as follows: Professional Hair Products led with a 15.5% increase, driven by strong performances from Kérastase and Redken新品; Dermatological Beauty (Active Cosmetics) grew 10.8%; Consumer Products rose 5.8%; and Luxury Products increased 5.2%.

Regionally, North America, the second-largest mature market, showed strong recovery with an 11.4% increase. Europe, the largest market, experienced a broad recovery with 10.3% growth. North Asia, including China, declined by 4%, impacted by weakness in travel retail, although mainland China achieved high single-digit growth. In the Middle East, consumption was restrained due to regional conflicts, with the UAE showing weakness while Saudi Arabia demonstrated resilience.

L'Oreal, which combines consumer goods and luxury attributes, has demonstrated strong resilience amid macroeconomic challenges. Last month, the company completed the 40 billion euro acquisition of Kering Beauté, including brands like House of Creed, strengthening its luxury portfolio. In contrast, competitor Estée Lauder has seen its stock decline by 28% over the same period.