L’Oreal Says Cosmetics Market ‘Strong’ as Sales Beat Estimates

L’Oreal SA, the world’s largest cosmetics maker, reported first-quarter sales that exceeded analysts’ estimates and said it’s confident it can outperform the market in 2012 and increase sales and profit.

Revenue climbed 9.4 percent to 5.64 billion euros ($7.43 billion), the Paris-based company said today after markets closed. The average of 10 analysts’ estimates compiled by Bloomberg was 5.53 billion euros. Excluding acquisitions and currency moves, sales climbed 6.4 percent.

Revenue increased in all regions, led by Asia, while the luxury division was L’Oreal’s best-performing unit for sales growth. The maker of Maybelline makeup has said it’s looking for acquisitions that can accelerate market share gains. A spokeswoman declined to comment last week on whether that could include Avon Products Inc., the world’s largest door-to-door cosmetics retailer that New York-based Coty Inc. is seeking to buy for $10 billion.

“The worldwide cosmetics market remains strong and trends are favorable for all brands,” L’Oreal Chief Executive Officer Jean-Paul Agon said in today’s statement. L’Oreal has said it expects the cosmetics market to expand about 4 percent in 2012.