Bloomberg — L’Oreal SA expects slower growth for the global beauty market this year, according to its CEO, as weakness in China weighs on sales after years of rapid profits.
Read also: H&M shares fall after sales plummet in June
Nicolas Hieronimus told investors at a JPMorgan event in Paris that he now sees global beauty market growing 4.5% to 5% this year from previous forecast of 5% earlier this year, a L’Oreal spokesperson told Bloomberg News.
Hieronimus attributed the downward revision to a flat market in China, the representative added. That country had long been a growth engine for L’Oreal, with consumers snapping up its high-end cosmetics offerings.
L’Oreal shares fell as much as 5.1% in Paris and closed 3.4% lower. They have lost 6.2% so far this year.
We recommend: LVMH and L’Oreal face problems in China
Its rivals also fell, with Estee Lauder Cos. losing up to 2.8% in New York and Nivea maker Beiersdorf AG closing 2.5% lower in Frankfurt.
L’Oréal reported a 9.4% increase in sales in April in comparable stores during the first three months of the year, which had allayed some concerns about the state of the beauty business. The company’s next quarterly update is scheduled for July 30.
Read more on Bloomberg.com
