L’Oreal shares slump on disappointing sales

L’Oreal shares slump on disappointing sales

Paris: Shares in global cosmetics leader L’Oreal slumped by 3.94% in early trading on Wednesday in response to second-quarter sales figures judged disappointing by analysts.

L’Oreal said that sales growth in the second quarter fell to 0.9% despite a 5.0% sales increase over the whole of the first half to €10.1 billion ($14.4 billion).

Analysts said the slowdown reflected disappointing results in Europe where sales grew by 1.4% in the first half.

L’Oreal said that half-year sales grew by 10.1% in new markets.

In the second quarter, €4.9 billion in sales was below the €5.09 billion forecast compiled from analysts by Dow Jones Newswires.

The price of shares in the group fell 3.94% to €84.43 in a slightly falling market.