Wide-Moat L'Oreal Poised to Expand With Top Brands and Innovation Across All Beauty Categories
As the largest beauty product maker globally, L’Oreal has built an impressive collection of top-selling beauty brands balanced across core categories (skin care, color cosmetics, hair care, and fragrances) that straddle the premium and mass segments. We believe its strong brand intangibles based on innovation, marketing, and consumer experience, coupled with scale-based cost advantages, should support a durable competitive edge, enabling the firm to deliver excess returns for more than 20 years. As such, we award L’Oreal a wide economic moat rating.