WHAT? L’Oreal, the global cosmetics leader, reported a solid 9.4 percent rise in first-quarter sales on a comparable basis, beating analysts’ expectations and easing concerns about a potential slowdown in its two biggest markets, the United States and China. The company reported total revenue of 11.24 billion euros ($11.98 billion) for the period through March.

THE DETAILS That performance beat the expected 6.1% increase forecast by Jefferies analysts, with an 8.3% increase on a reported basis. Growth was particularly notable in North America and Europe, each up over 12%, driven by solid sales of mass market products and dermatology lines. Despite broader market concerns highlighted by a recent drop in the outlook for retailer Ulta Beauty, L’Oreal’s consumer products division, including popular brands L’Oreal Paris and Elseve, posted 11.1% growth. The dermatology segment, which includes brands such as La Roche-Posay and CeraVe, saw significant growth of 21.9%, fueled by ongoing medical approvals.

WHY? Despite a challenging comparative base in travel retail and slower growth in mainland China, L’Oreal’s strategic focus on diversified product lines has enabled it to maintain a leading position, particularly in luxury beauty, where it holds a 34% market share in China . Although the luxury division saw modest growth of 1.8%, it still managed to beat expectations and contribute to an overall positive quarter. L’Oreal’s resilience to adapt to market dynamics underscores its robust strategic framework, which continues to perform well amid global economic uncertainty.