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.
Annual Financial Report 2025 Revealed
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%.
Technical Analysis of the Current Decline
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.