L'Oréal Stock: Drops 6.7% at Close After Quarterly Sales Fall Short of Forecasts
On Wednesday, the French cosmetics giant recorded one of the steepest declines on the CAC 40, closing at 371.35 euros, significantly down from the previous day. This correction followed the announcement of the third quarter 2025 results, which did not meet market expectations. The business momentum for the July-September period was below the acceleration anticipated by analysts for the second half of the year.
Significant Drop in Stock Price
At the close of trading on Wednesday, October 22, L'Oréal's stock price stood at 371.35 euros, marking a 6.7% decrease from the previous day when the stock was at 398 euros. This decline is in stark contrast to the CAC 40, which saw a modest decrease of 0.63% on the same day to 8,206.87 points. The capital turnover was 0.2%, indicating a relatively moderate level of trading activity despite the significant movement. Over the week, the stock still shows a gain of 0.77%, and over three months, it maintains a positive performance of 2.39%. On an annual scale, L'Oréal has gained 2.1%, although this remains below the CAC 40's performance over the same period, which has increased by 8.9%. The resistance threshold of 398 euros, tested on Tuesday, was broken downwards on Wednesday, while the technical support now stands at 362 euros, a level towards which the stock is approaching.
Post-Earnings Decline
This downward movement follows the Tuesday evening release of the third quarter 2025 results. L'Oréal reported revenue of 10.33 billion euros, up 4.2% on a like-for-like basis. Although this growth represents an acceleration compared to previous quarters, it fell short of the analysts' consensus, which had expected a growth of 4.7%. For the first nine months of the year, the group reported a growth of 3.4% on a like-for-like basis, bringing the cumulative revenue to 32.80 billion euros. CEO Nicolas Hieronimus highlighted the gradual recovery of the group's two main markets, the United States and mainland China, while maintaining a cautious tone about the outlook. The management's comments disappointed investors, who were hoping for greater visibility for the fourth quarter, a strategic period with the end-of-year holidays in the United States and Singles' Day in China. The group is relying on its beauty stimulus plan, which contributed 70 basis points to the third quarter's growth, to support business momentum through the end of the year.
Technical Analysis of the Stock
Technically, the stock is now trading below its 50-day moving average, which stands at 385.32 euros, but remains slightly above its 200-day moving average set at 368.93 euros. The RSI indicator is at 74, signaling an overbought zone before this Wednesday's decline. The MACD shows a main line at 2.14 and a signal line at -1.50, with a positive histogram at 3.64. The Bollinger Bands frame the price between 356.46 euros for the lower bound and 395.72 euros for the upper bound. The one-month volatility is set at 5.99, while the stock's beta, particularly low at 0.03, illustrates limited sensitivity to variations in the benchmark index. The Average True Range stands at 4.76, reflecting the average amplitude of recent movements.
