CEO of cosmetics giant L’Oréal announces slowing market growth amid Chinese decline

Nicolas Hieronimus told investors at a JPMorgan event in Paris that he now sees the global beauty market growing between 4.5% and 5% this year, compared to a previous forecast of 5% earlier this year, a L’Oréal spokesperson told Bloomberg News.

Mr Hieronimus blamed the downward revision on a stagnant market in China, the official added. The country has long been a growth engine for L’Oréal, with consumers snapping up its high-end cosmetics.

L’Oreal shares fell 5.1% in Paris and closed down 3.4%. They have lost 6.2% so far this year.

Competitors have also retreated, Estée Lauder Cos. down 2.8% in New York and Nivea maker Beiersdorf AG closing down 2.5% in Frankfurt.

L’Oréal reported in April a 9.4% increase in like-for-like sales in the first three months of the year, easing some concerns about the state of the beauty sector. The company’s next quarterly update is scheduled for July 30.