L'Oreal Q4 sales miss forecasts; aims for 2010 growth

LorealWorld's largest cosmetics maker L'Oreal SA reported profit and sales below the expectations primarily due to fall in the demand of perfumes and makeup in its main markets.

Company reported 8% decline in the yearly earnings and. Revenue from the luxury segment reported a decline of 4.7% in the fourth quarter and globally company reported a 3.5% decline in the sales especially in the American and US market.

The company's largest source of income consumer-products unit, L'Oreal de Paris shampoos and Maybelline makeup, recorded a decline by 0.2 percent to 18.4 percent of sales. Operating profit of company declines as a percentage of sales in all geographical zones.

Company expects the sales growth will gain momentum from the first quarter based on the progress it make in the fourth quarter over the third quarter and also expect the continuous of the same remain in line for the full fiscal year
2010.