L'Oreal Unsp/Adr

wins, but could you also consider some pricing actions in the back half of the year should these higher prices persist? Thank you very much. All right. So, Guillaume, beauty market growth, and again, apologies for the glitch in the beginning. We estimate the markets in the first quarter to be shy of 4% growth, so it's likely to be 0.38 or something like that, but as you know, we don't have all the sellout data, but it's So more or less on the same pace than the second half of last year. So it remains dynamic. And as I said earlier, we have been paying a lot of attention on the recent weeks to see whether there was any impact on consumer behaviors of the increase in gas prices or for people where they have have to fuel their car tanks with. And we have seen absolutely no change in beauty consumption patterns. So that's the answer to your first question. As far as the US market of North America is concerned, first of all, what is important, as you know, our growth is Once adjusted of the IT transformation is a plus seven point six. So it's indeed one of our best growth In a while and with a little bit of discrepancy between selling and sell-out because our sell-out is actually higher than our sell-in We clearly outperform the market Big time I must say CPD in sell-out is really really doing great because it's low double digits in sell-outs, which is great, with hair care on fire. And the reason why we're a bit behind in sell-in, which is one of the explanations why our consumer product decision is a bit below some of the expectations, is the fact that we had kind of the perfect storm in the U.S. without play on words because we had, on the one hand, a sell-out that's really going really, really strong, particularly in hair care, but overall across all categories. We are building the inventory to prepare for our IT switch, which is going to be early June in the US. And at the same time, we had a snowstorm on our big distribution center in Arkansas, so we lost some sales there. But overall, CPT is doing great. Professional is a bit like everywhere. I would say the good The good sign is that salon-centric, which had been a bit lackluster last year, is back to positive growth. So it's helped by the launch of ColorWow, but overall we see a little better situation in the salon world. Luxury is doing good thanks to fragrance and the recent launches in fragrances and La Roche-Posay and LDB in general. are also doing pretty well because you have both the recovery of CeraVe in skin care and good performance in hair care, and La Roche-Posay continues to thrive. So overall, I think we are in a very good sellout situation in the U.S., and we are managing this big, it's our biggest country, so this move to our new SAP in the U.S. is something that we work very hard on, and that has had minor but real logistic implications in the first quarter. But overall, it's one of the countries where our performance is really very good right now. And Christophe, on the impact of... Yes, on the impact.

First, let me give you also a flavor on the structure of the growth because I think it's important. So we have both growth in volume and value. Basically, volume accounts for around 40% of this growth. And therefore, the value is there also to protect, of course, our growth margin. And as you can imagine, first part of the half, we have a negative impact linked to the tariffs. So this... will have a negative impact on the gross margin for the first half, but we are trying, of course, to mitigate the impact with different aspects. On the other side, we have been computing the potential cost linked to the oil. So as you can imagine, we have on one side the negative cost, additional cost on the logistics, and also indirect additional cost potentially on the sourcing of some materials, mainly on plastics. And when we add both of them, if the oil stays at around 90 to 100 US dollars a barrel, then the additional impact could be in the range of 90 to 100 million euros. Of course, all this is being calculated based on the evolution of the prices. And we'll see, because the biggest risk at the end will be the inflation that may come from this whole increase. And if inflation, of course, goes up On the long term, of course, we may have to take some action on the pricing later this year.

Yeah, we'll see if it lasts, whether we need to do it. But we also will have potentially some good guys on the tariffs in the US in the second half of this year to change in percentage that we now have. So we'll see. We're monitoring. But as you know, we have this capacity to take... prices up, and we have a lot of, I would say, opportunities in what we call revenue growth management, where the articulation of formats, product mixes, etc., and promotions is also another way to protect our gross margin without necessarily taking prices up too much for consumers. That's how we did it post-COVID, and that's one of the tools we used to to keep on recruiting consumers while protecting LPNL.