L'Oreal 3rd Quarter Sales Fall 0.7 Pct

November 05, 12:39 PM ET

PARIS (AP) - French cosmetics giant L'Oreal SA said Thursday its revenue slipped 0.7 percent in the third quarter on lower sales of its creams and ointments targeted at the luxury and professional beauty care markets.

L'Oreal, based in Paris, reported revenue of euro4.24 billion ($6.2 billion) for the July to September period, down from euro4.27 billion a year earlier.

The company's cosmetics businesses include the Matrix and Redken professional hair coloring products and Garnier consumer skincare products as well as luxury creams and ointments sold under the Lancome brand.

L'Oreal said that on a comparable basis excluding acquisitions, disposals and foreign exchange impacts, its cosmetics businesses posted 1.1 percent revenue growth in the quarter.

"Although the market remains difficult, the return to cosmetics sales growth in the third quarter is very encouraging, and confirms the gradual improvement in sales we had announced," L'Oreal CEO Jean-Paul Agon said in a statement.

L'Oreal's Body Shop chain of retail stores reported revenue decline of 8 percent in the third quarter, while sales from its dermatology joint venture with Switzerland's Nestle SA fell 3.6 percent.

L'Oreal shares closed up 1.4 percent at euro71.30 ($106).