Maus' China business breaks growth expectations of cosmetics maker L'Oreal
Due to a lack of recovery in key China business, L'Oreal's growth in the second quarter fell short of expectations. The cosmetics giant reported a 5.3% increase in sales to €10.88 billion on Tuesday, but analysts had hoped for a 5.9% increase.
Weak economic prospects in China are causing consumers to hold back on purchases, leading to a decline in sales in the region, L'Oreal said. However, last year's figures were distorted by a strong increase.
L'Oreal acknowledged that the weak economic environment in China is affecting consumer spending, potentially hindering further trade with China. Despite reporting a 5.3% sales increase, the company's growth in the second quarter was lower than anticipated due to reduced demand in key China business.
