Cosmetics firm L'Oréal has not reached analysts' expectations in the second quarter of 2014, mainly because of a lower demand in the United States.
North American drop
L'Oréal's like-for-like turnover grew 4.1 % in its second quarter, slightly lower than what analysts had expected (+ 4.4 %). Total turnover increases were relatively stable, at 0.7 %, reaching 5.536 billion euro.
Western European turnover grew 2.9 % (2.8 % on a like-for-like basis), while North American turnover dropped 3.3 %, despite a 2.4 % like-for-like turnover increase.
L'Oréal expects full-year turnover growth to exceed expectations, with a 3.5 to 4 % growth, similar to the entire cosmetics branch as a whole. The company has already spent more than 3.5 billion euro in acquisitions this year, among which an 8 % share buy-back from Swiss Nestlé.