Profit Growth of L’Oreal Slows Down as Shoppers Reduce Spending

L’Oreal SA, the world’s largest cosmetic maker, said that their first-half profit rose 6.8 percent, the slowest growth in three years, as European and U.S shoppers reduced their spending on skin care products, perfumes and other cosmetics.

The Paris-based firm said that their net income in the six months through June climbed to 1.26 billion Euros from 1.18 billion Euros a year earlier. The maker of Maybelline makeup and Lancome perfume last month reported the slowest quarterly growth rate in three years and reduced their sales target. Profit of the company, as a percentage of sales, widened by 0.4 percentage points to 17.3 percent during this period.

In a bid to compensate for a weaker dollar and slowing demand in both Western Europe and the U.S, L’Oreal has expanded in the emerging markets, from Russia to China.

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