Heavy seat for French luxury, hit by a flurry of sales that has swept up two of the champions of the sector, Hermès and L'Oréal, although both have posted solid quarterly resultsThe accounts confirm the stability of the business models, but investors expected moreAnd the stock market, at this moment, is unforgiving.
Hermès drops more than 4%, L'Oréal plunges by 6%: two minus signs that reveal the growing gap between good fundamentals and market sentiment, in a context marked by macroeconomic uncertainties and a less sparkling outlook for global luxury consumption.
Hermès: Elegant growth, but change ruins the show
In the third quarter of 2025, Hermès International has recorded sales of 3,88 billion euros, up 4,8% on a published basis and 9,6% at constant exchange rates. This result was in line with market expectations but did not spark enthusiasm on the stock market.
The group led by Axel Dumas highlights the "slight improvement compared to the second quarter," with a more marked progression in the clothing and accessories segments, and in the silk and textiles sector, confirming the solidity of the offering mix. In the first nine months of the year, the total turnover rose to 11,9 billion euros, +6,3% on a published basis and +8,6% at constant exchange rates.
Le regional performances They show a balanced picture with Asia (excluding Japan) growing, driven above all by Greater China, where local customers remain the main driver, Europe and the Americas showing sequential improvement while in the Land of the Rising Sun growth is more moderate (+4%), but still at solid levels.
The other side of the coin comes from currency movements, which negatively impacted revenues by €254 million at the end of September. This figure weighs especially heavily on a brand that generates over 60% of its sales outside the Eurozone.
“Hermès has stayed the course thanks to the strength of its model and customer loyalty,” he commented. Axel dumas, reiterating its ambitious medium-term growth guidance despite geopolitical and monetary instability. Hermès' strategy, centered on controlled production, selective distribution, and a commitment to artisanal luxury, continues to work. But the market, after years of exceptional results, is beginning to demand more significant acceleration.
L'Oréal: Organic growth accelerating, but expectations were higher
Different photography of L'Oréal, but the market reaction was the sameThe Parisian cosmetics group closed the first nine months of 2025 with a turnover of 32,8 billion euros, up 1,2% on a published basis and 3,4% like-for-like. At constant exchange rates, the increase rises to 4%, confirming a quarter-over-quarter improvement.
In the third quarter, the growth On a comparable basis, it reached +4,9%, supported by dynamism in Europe and Asia, but held back by a weaker performance in North and South America. Analysts, however, had expected something more.
Le performance by division they tell a heterogeneous picture:
- Professional Products (+7,4% like-for-like): the group's best division, thanks to Kérastase and Redken and the acquisition of Color Wow, a fast-growing premium haircare brand.
- Consumer Goods (+3,1%): robust performance, with increasing volumes and prices and strong momentum in North America and emerging markets.
- L'Oréal Luxe (+2,2% like-for-like): a key segment, but below expectations, held back by a weak dollar and more selective demand in high-end makeup and fragrances.
- Dermatological Beauty (+3,7%): driven by brands such as La Roche-Posay and CeraVe, particularly in the online channel.
For the CEO Nicholas hieronimus The results demonstrate the strength of the strategy: "We accelerated quarter after quarter. All regions contributed, and I see enormous potential in luxury beauty, thanks in part to our new partnership with Kering and the acquisition of Creed, which makes us a leading player in niche fragrances." Despite their optimism, analysts at RBC Capital Markets deemed the improvement compared to the previous quarter "disappointing": "Only the professional division beat expectations, while the others showed results below consensus."
And so the market punished with the stock down more than 6% to 372,90 euros, the worst stock in the CAC 40.
Luxury in the process of normalization
The general impression is that the lflow is entering a phase of normalizationAfter years of double-digit growth and record margins, the post-pandemic effect and explosive demand from China are stabilizing. Hermès and L'Oréal continue to outperform their competitors, but they cannot escape the industry's new paradigm: slower growth, rising costs, and exchange rate pressure.
In the meantime, the market awaits Kering's accounts, expected soon, to understand whether the Gucci group will be able to confirm the sign of stabilization that many investors are hoping to see.
