The news: North America was a bright spot for L’Oréal’s otherwise mixed Q2.

• Like-for-like sales in the region rose 8.3% YoY, more than twice the consensus estimate of 4%.
• But weakness in the cosmetics maker’s home market of Europe dragged down overall growth: Total like-for-like sales rose just 3% YoY to €10.74 billion ($11.62 billion), missing expectations for €10.83 billion ($11.72 billion).

US on the upswing: CEO Nicolas Hieronimus credited the company’s US recovery to a number of factors, including improving consumer sentiment and ecommerce growth.

• US consumers’ mood is improving as anxieties around trade policies ease—although that could change quickly should the Trump administration follow through on its promise to implement reciprocal tariffs on August 1.
• Online sales rose faster than brick-and-mortar sales in the period, a trend that L’Oréal noted is also present in most parts of the world—and one the company is prepared to meet thanks to partnerships with Amazon and Rakuten, and to a lesser extent TikTok Shop.

Zooming out: Despite the ups and downs the industry has faced over the past few months, Hieronimus is sticking to his earlier projection that the beauty market will grow around 4% this year.

• Some of his optimism is due to the fact that makeup and skincare are becoming essential purchases for a growing number of people—including men and children.
• Tariff-related price increases could drive top-line growth, especially given hefty duties on European and Korean imports.
• It also helps that the industry faces easier comps this year after a difficult 2024—particularly in China, where sales (at least for L’Oréal) are stabilizing.