L’Oreal Sales Miss Analyst Estimates On Western Europe Slowdown
L’Oreal SA reported second-quarter sales that missed analysts’ estimates as rising demand for its beauty products in North America was offset by worsening conditions in its home market of France.
Sales excluding acquisitions, disposals and currency swings grew 4.3 percent, Paris-based L’Oreal said Thursday after European markets closed. Analysts predicted 4.6 percent, according to the median of 17 estimates compiled by Bloomberg. Sales in Western Europe rose 1.4 percent, missing analysts’ estimates.
Western Europe “is being held back by a very difficult market in France,” L’Oreal said.
The maker of Maybelline and Urban Decay makeup is looking to make acquisitions and roll out more premium-priced products in the U.S. to help spur growth at a time when it’s facing a slowdown in Hong Kong and Latin America. Last week the company agreed to acquire IT Cosmetics for $1.2 billion in its largest acquisition in eight years, adding more than 300 skin-care and makeup products to its lineup. Last month, it bought niche perfume maker Atelier Cologne.
The company reiterated its full-year forecast to outperform the broader market.
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