Summary of Q4/FY24 results Q4 LFL sales growth at +2.5% was materially below consensus expectations (VA cons: +3.9%), the shortfall being principally driven by weakness in North America (+1.4% vs. VA cons at +4.7%). By division, Luxe was the principal shortfall with +1.0% LFL sales growth (cf. VA cons: +5.0%). Turning to the bottom-line, FY EBIT / margins were in-line with VA consensus, but a lower-than-expected tax rate helped to deliver a c.3.6% FY EPS beat. The dividend at EUR7.00 was c.2.6% ahead of VA consensus. News We highlight that L''Oreal expects beauty market growth of +4 to 4.5% in FY25 and it is determined to outperform the market. Earnings We revise our FY26e/FY27e EPS by c.(2)%. Investment Thesis We believe that consensus LFL sales growth estimates will likely remain too high and as a consequence, at best the stock will struggle to re-rate. Rating / target price We maintain our Underperform rating and EUR325 target price. 15 questions for management Even adjusting for a couple of points of shipment phasing, North America was relatively weak in Q4, can you please shed some more colour on the underlying dynamics?