October 30, 2019 / 8:22 AM / 16 days ago

L'Oreal shares surge on encouraging China momentum

FILE PHOTO: A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. REUTERS/Eric Gaillard

PARIS (Reuters) - Shares in cosmetics maker L’Oreal (OREP.PA) rose more than 6% early on Wednesday, a day after reporting its biggest quarterly jump in sales in more than a decade buoyed by demand from Asia.

The maker of Lancome cosmetics defied fears of a slowdown in mainland China by beating revenue forecasts by a wide margin in an encouraging sign for peers selling high-end skincare products, such as Clinique owner Estee Lauder (EL.N).

“Growth in luxury (cosmetics) was fantastic,” analysts at Bernstein said in a note on L’Oreal.

The French firm did highlight weak spots, however, including in the United States, where make-up sales are slowing.

Reporting by Sudip Kar-Gupta and Sarah White; editing by Jason Neely

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