L'Oreal shares fell on Friday as the cosmetics firm struggled to fire up sales of its mass market beauty products like Garnier shampoo and revenues in western Europe faltered.
The French company posted higher operating income in the first half of the year late on Thursday. Its luxury arm extended its strong run, with labels like Lancome doing well in China in an encouraging signal for rivals like U.S.-based Estee Lauder, which is more squarely focused on premium brands.
But L'Oreal reported lower-than-expected comparable sales growth of 2.3 percent in the second quarter in its central mass market division, and the United Kingdom, gearing up to leave the EU, emerged as a fresh weak spot across the group.
Its shares were down just over 4 percent at 1028 GMT. "Clearly we are not happy with growth in the consumer division in the first half," L'Oreal Chairman and Chief Executive Jean-Paul Agon told analysts on a conference call on Friday.