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PARIS, France — L'Oreal SA, the world's largest cosmetics maker, reported third-quarter sales that trailed estimates as demand for Maybelline New York makeup and other consumer products slowed in western Europe.
Revenue climbed 2 percent to 5.39 billion euros ($6.73 billion), Paris-based L’Oreal said today in a statement after European markets closed. Analysts predicted 5.47 billion euros, according to the average of 13 estimates.
The cosmetics market shrank in western Europe in July and August and was barely positive in the U.S., L’Oreal Chairman Jean-Paul Agon said last month as he lowered his estimate for second-half market growth to as much as 3.5 percent. Demand for lip gloss, moisturizer and shampoo should pick up in 2015, Agon said at the time. L’Oreal still expects to outperform the market in 2014, he also said.
“The market is slowing down, held back in particular by poor summer weather in Western Europe,” L’Oreal said today, referring to the consumer-products division, its largest.
Group like-for-like sales rose 2.3 percent, compared with the 3.8 percent gain anticipated by analysts. Growth should accelerate in the fourth quarter, Agon said in the statement. L’Oreal will make a capital gain of about 2 billion euros after buying back shares from Nestle, he also said.
By: Andrew Roberts; editors: Celeste Perri, Paul Jarvis and Robert Valpuesta.
