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China Drags On Shiseido, Kao In 2023; Sally Beauty Partners With Black Hair Experience; Beauty News

Executive Summary

Shiseido and Kao report China and travel retail were significant headwinds in 2023, though both expect smoother sailing ahead. More beauty news in brief.

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L’Oréal Sets Sales Records In 2023, But Q4 China Impact Rattles Investors

Fourth quarter sales grew 6.9% on a like-for-like basis to 10.6bn, two points less than analysts had expected, due to continued disruption in travel retail and troubles in China. L’Oreal’s stock price slipped 7% the day it reported results.

Q4 Beauty Earnings Preview: China Volatility In 2023 Has Analysts Leery Of Big Beauty’s Results

Shiseido, L’Oreal and The Estee Lauder Companies are preparing to announce earnings results for the final three months of 2023, and all are expected to report headwinds that held back performance in China. Analysts anticipate a strong fourth quarter from Coty, which has been largely insulated from the ups and downs of the Chinese market in recent years.

Cosmetics Industry Awaits FDA’s Allergen List While Working To Inform GMP Rulemaking

The Independent Beauty Association does not yet have insight into what ingredients will be listed in the US FDA’s proposed rulemaking for cosmetic allergen labeling – due by 29 June – but is optimistic the agency will consult industry when it comes to setting the compliance timeline. Meanwhile, industry stakeholders are pushing for international harmonization in the agency’s cosmetic GMPs rulemaking.

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