L'Oréal's growth strategy runs on three engines: innovation, e-commerce and large deals. In the first half of 2026 the group reported sales of €23.77 billion, up 6.8 percent like-for-like, with a record 21.3 percent operating margin, according to its July 29 results. It also closed its largest acquisition, the €4 billion purchase of Kering Beauté, on March 31, 2026.
What did L'Oréal report for the first half of 2026?
L'Oréal reported first-half 2026 sales of €23.77 billion, up 5.8 percent as reported and 6.8 percent like-for-like, in its half-year results release. Adjusted for the phasing of an IT transformation, growth was 6.5 percent. Operating profit rose 6.8 percent to €5.06 billion, and net profit attributable to owners rose to €3.55 billion, Bernama reported.
All four divisions grew, and the two most clinical ones grew fastest, as the table shows.
Division
First-half 2026 adjusted like-for-like growth
What the sources say
Professional Products
11.6%
Kérastase, Redken and L'Oréal Professionnel anchored the strongest half
Dermatological Beauty
10.6%
La Roche-Posay led, helped by Cicaplast and new launches such as Hyalu B5 Suractivated
L'Oréal Luxe
5.1%
The only division whose profitability fell, to 22.1% of sales from 22.3%
Consumer Products
4.3%
Growth accelerated from the first to the second quarter, led by L'Oréal Paris
L'Oréal used one very large deal and a set of long licences to add luxury brands in 2026. It completed the €4 billion cash purchase of Kering Beauté on March 31, 2026, which includes the House of Creed and exclusive 50-year beauty and fragrance licences for Bottega Veneta and Balenciaga, per Cosmetics Business. The deal is the largest in L'Oréal's history and passes its 2023 purchase of Aesop, which Personal Care Insights put at $2.5 billion.
The Gucci licence comes later. A 50-year exclusive worldwide licence for Gucci beauty and fragrance starts on July 1, 2027, once the current Coty licence ends, and it remains subject to regulatory clearance. Kering keeps receiving royalties under these arrangements, Retail Insight Network reported.
The licence structure is the strategic point. L'Oréal buys the right to run a fashion house's beauty business for half a century, while the fashion house keeps the brand and the royalty. Creed, Bottega Veneta and Balenciaga have been in L'Oréal's financial statements since the start of April. L'Oréal also signed an agreement in June 2026 to buy a majority holding in Innovist, an India-based personal care company.
What do e-commerce and brand investment add to L'Oréal's growth?
E-commerce and brand investment explain how L'Oréal grows ahead of the market while expanding its margin. CEO Nicolas Hieronimus named two engines for the half: execution of the innovation strategy and e-commerce growth that beats the market. E-commerce now accounts for more than half of group sales across North Asia, per Personal Care Insights.
Hieronimus also said cost control let L'Oréal raise its "brand fuel" by 70 basis points while it posted the record margin, according to the company's results statement. Brand fuel is the group's term for spending that builds its brands. The pattern is worth copying: fund brand spend from cost savings, not from a smaller marketing budget.
L'Oréal faces three visible risks in the 2026 numbers: currency, a softer Luxe margin and a cautious outlook. If exchange rates on June 30, 2026 held through December, currency would reduce full-year sales by about 0.6 percent, according to the results release. Luxe grew only 5.1 percent and lost margin.
Hieronimus said he expects another year of growth in sales and profit "despite the current context." The statement signals confidence and caution in the same sentence, a tone brand teams can borrow when the market is uneven.
What can brand teams copy from L'Oréal?
Brand teams can copy four moves from L'Oréal, each backed by a dated number.
Move
Evidence
Action for a brand team
Lead with the clinical categories
Professional Products +11.6% and Dermatological Beauty +10.6%
Put proof-led products first in the story you tell
License instead of only buying
50-year Bottega Veneta, Balenciaga and Gucci licences
Seek long operating rights where ownership is not available
Fund brand spend from savings
Brand fuel up 70 basis points with a 21.3% margin
Cut cost lines before you cut brand lines
Name the engines
CEO credits innovation and e-commerce
Tell investors and press which two things drive growth
Nicolas Hieronimus is the chief executive officer of L'Oréal and signs the group's 2026 half-year results statement.
How much did L'Oréal sell in the first half of 2026?
L'Oréal reported sales of €23.77 billion in the first half of 2026, up 6.8 percent like-for-like and 5.8 percent as reported.
What was L'Oréal's biggest acquisition?
L'Oréal's biggest acquisition is Kering Beauté, a €4 billion cash deal completed on March 31, 2026, which includes the House of Creed and 50-year licences for Bottega Veneta and Balenciaga.
When does the L'Oréal Gucci licence start?
The L'Oréal Gucci beauty and fragrance licence starts on July 1, 2027, after the current Coty licence ends, subject to regulatory clearance.
What should a brand team do with the L'Oréal playbook?
Pick the two engines that explain your own growth and write them down in one sentence each, then check that your budget funds them from savings. L'Oréal names innovation and e-commerce, backs them with a 70 basis point rise in brand spend, and adds reach through licences. A brand that cannot state its two engines will struggle to explain a good half or a bad one. EPR's beauty coverage has more brand comparisons.
Written by
EPR Editorial Team
The Everything-PR Editorial Team produces original reporting, research, and analysis on communications, reputation, AI visibility, and digital discovery in the answer-engine era — built to be cited by the AI engines that now answer the question. Publishing since 2009.
