European markets end Wednesday down as earnings hold spotlight; L’Oreal down 6%

 European stocks ended Wednesday’s session slightly negative as regional corporate earnings reports rolled in.

The pan-European Stoxx 600 was almost 0.2% lower by the closing bell, with no broad consensus movement seen among sectors and major bourses.

Looking at individual stocks, British lender Barclays raised its guidance and announced a £500 million ($667 million) share buyback in its third-quarter earnings on Wednesday. Its shares ended the day 4.9% higher.

L’Oreal stock finished down by 6.7% after quarterly growth disappointed markets, despite like-for-like sales growth of 3.4%, with sluggish North America sales and tariffs weighing on the French firm. It did, however, post growth in China. L’Oreal is set to purchase Gucci owner Kering’s beauty business.

The world’s second-largest brewer, Heineken, expects to sell less beer in 2025 as demand was softened by macroeconomic challenges in the third quarter. Beer volumes dropped by 2.3% in the third quarter. The firm narrowed its full-year forecast, predicting volumes will be towards the lower end of the 4% to 8% guidance. Its shares rose more than 1%.

Shares of Birkin bag maker Hermes closed down 2.3%, after the firm reported weaker-than-expected third quarter sales of 3.9 billion euros. The figure marked a 10% jump from the same period a year earlier at constant exchange rates. Its leather goods and saddlery division — which includes handbags — led growth with a year-on-year constant currency sales boost of 13%, which the company labeled “a remarkable performance.”

In financial services, Norwegian lender DNB Bank generated a 10.27 billion Norwegian kroner ($1.02 billion) profit attributable to shareholders during the third quarter, narrowly beating consensus expectations of 10.17 billion.

However, the bank saw its net interest income total 15.99 billion Norwegian kroner, which was below analysts’ forecasts. DNB’s shares were down by 4.9% at the close of Wednesday’s session.

Meanwhile, shares in Svenska Handelsbanken gained 0.4% after the Swedish bank’s third-quarter earnings showed net interest income totaled 10.47 billion Swedish krona, in line with analysts’ forecasts. Meanwhile, net profit reached 5.95 billion Swedish krona, above analysts’ consensus expectations of around 5.79 Swedish krona.

Meanwhile, Randstad, the world’s largest recruitment firm, shed 6% of its share price after it reported a year-on-year drop in revenue, operating profit, and net income. Revenue fell 3.4% in the third quarter to 5.8 billion euros.

ITV sat alongside Randstad at the bottom of the European Stoxx 600 index, ending trading down 8.6%, as investors reacted to news that its largest shareholder Liberty Global has sold half of its shares in the broadcaster.

Novo Nordisk extended losses, ending the day down 3.3% as investors respond to news on Tuesday that board members will step down after clashing with the controlling shareholder, the Novo Nordisk Foundation, on the make-up of the firm.