PARIS (Reuters) – L’Oréal fell on the stock market on Friday morning, the group having reported on Thursday evening organic growth in its turnover in the third quarter below expectations, due in particular to a decline in sales in Asia.
On the Paris Stock Exchange, the title lost only 0.73% at 08:15 GMT compared to a decline of 0.87% for the CAC 40 index. The value lost up to 3.7% in the first exchanges and hit a low since March.
A slowdown in L’Oréal’s luxury division was expected after LVMH’s perfumes and cosmetics division narrowly missed consensus last week, but with growth limited to just 3.2% in the luxury division compared to 12.2 % forecast, this is a negative surprise for the market, underline Jefferies analysts.
Analysts also pointed to the greater than expected impact of controls carried out by Chinese authorities on Daigou resellers who buy the group’s products at reduced prices abroad to resell them in China.
Even if investors expected a decline in North Asia, the extent of the shortfall “surprised us”, say analysts at Barclays.
(Report by Mimosa Spencer, by Claude Chendjou, edited by Blandine Hénault)
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