July 31, 2019 / 7:11 AM / 22 days ago

L'Oreal shares fall after sales growth disappoints

PARIS, July 31 (Reuters) - L’Oreal shares slid lower on Wednesday after the French cosmetics maker reported weaker-than-expected sales growth in the second quarter, dragged down by a fall in North American revenues where demand for make-up is slowing.

The beauty group, whose brands include high-end Lancome and more budget ones such as Garnier, posted a 6.8% rise in like-for-like sales across all regions in the period, missing expectations for growth of 7.4%.

“L’Oreal trades on its top-line growth,” analysts at Bernstein said in a note, adding that revenue growth was still strong but had dipped below a quarterly pace of 7% for the first time in a year. “The worry is whether we are past the peak and if growth will ‘normalise’ from here.”

L’Oreal’s shares were among the worst performers on Paris’ SBF 120 index of French companies. (Reporting by Sarah White; Editing by Sudip Kar-Gupta)

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