L'Oréal Stock: Significant Decline After 2025 Annual Results Announcement
L'Oréal's stock fell over 3% this Friday morning, following the announcement of its 2025 annual results. Despite reporting a 4% organic growth and a proposed dividend increase, the stock experienced significant profit-taking.
The cosmetics giant unveiled its 2025 annual financial report on Thursday evening, showing an acceleration in organic growth to 4% along with improved profit margins. The group also announced the acquisition of Kering Beauté and an increased stake in Galderma, thus strengthening its strategic portfolio. Additionally, management proposed a dividend increase for shareholders. Despite these robust fundamentals, L'Oréal's stock traded on Friday morning at EUR 379.15, down 3.19% from Thursday's closing price of EUR 391.65. Over the past week, the stock has lost nearly 4%. This decline follows a more than 6% increase over the past three months, suggesting that the publication might have triggered profit-taking. However, the year-on-year performance remains positive at 13.53%.
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From a technical standpoint, today's decline brings L'Oréal's share price close to its 50-day moving average at EUR 377.83 and its 200-day moving average at EUR 376.30. These two thresholds, now very close to each other, form a convergence zone that could act as a short-term support. A downward breach of this zone would bring the stock closer to the technical support level identified at EUR 356. The RSI, an indicator measuring the speed of price variations, stands at 54, indicating a neutral position that signals neither overbuying nor overselling. This level suggests that today's downward movement has not yet generated extreme technical tension on the stock. The lower Bollinger Band, positioned at EUR 378.37, is almost at the current price level, confirming that selling pressure is pushing L'Oréal towards the lower end of its recent fluctuation channel. The nearest resistance is located at EUR 399.50.
« 2025 a été une année déterminante pour L’Oréal : nous avons réalisé des résultats solides tout en transformant le Groupe en profondeur. »
Résultats annuels 2025: chiffre d’affaires de 44,052 milliards d'euros (+1,3 % publié, +4,0 % à données comparables); marge brute à 74,3 %, marge d’exploitation à 20,2 %, bénéfice net par action à 12,71 €, dividende par action à 7,20 €, cash-flow opérationnel de 7,161 milliards d'euros; croissance soutenue par toutes les divisions et zones, forte dynamique e-commerce (~ 30%), et initiatives stratégiques (IA, M&A, Galderma).
Risks mentioned
Incidences macroéconomiques et incertitudes sur le marché mondial de la beauté
Effets de change et droits de douane défavorables
Opportunities identified
Plan de lancements et IA renforçant l’innovation produit
Croissance via le e-commerce et l’expansion internationale (Etats-Unis, Chine, marchés émergents)
Acquisitions et expansion via la participation accrue dans Galderma
Outlook / guidance
Management commentary: L’Oréal prévoit une année 2026 optimiste malgré les incertitudes macroéconomiques, et compte sur la croissance du chiffre d’affaires et des résultats grâce à sa stratégie multi-Divisions et à ses initiatives en intelligence artificielle et transformation digitale.
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Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
