L'Oreal chief executive Nicolas Hieronimus said the spread of GLP-1 weight loss drugs is changing what customers buy, especially in skincare.
The big picture: L'Oreal reported Thursday that sales in the three months to September rose 7.7%, above analyst expectations, and the CEO used the investor call to put GLP-1 drugs at the center of the story.
- Hieronimus called the rise in GLP-1 use "a very important phenomenon for us" and said it is "having an impact on beauty consumption and skin care consumption in particular."
Zoom in: Rapid weight loss can leave some people with loose skin, including around the face. Hieronimus said SkinCeuticals and Kiehl's already sell products designed to complement GLP-1 use and its effects on skin sagging.
The backstory: Drugs such as Ozempic, Wegovy and Mounjaro were developed for diabetes, then found to drive large weight loss by suppressing appetite. Prescriptions have boomed across the US and Europe.
Between the lines: L'Oreal has been buying its way toward the clinic. It raised its stake in dermatology firm Galderma to 20% last December, and both companies are running separate trials on GLP-1 users worried about loose skin, per Reuters.
- Galderma sells Sculptra, an injectable that stimulates collagen production, and the dermal filler Restylane.
By the numbers: A Galderma survey of weight loss medication users released last year found the vast majority had noticed changes to their facial appearance after starting the drugs.
Why it matters: L'Oreal owns Maybelline, La Roche-Posay and dozens of other brands, so its read on consumer behavior is an early signal of how a class of drugs is rewriting spending across retail.
