Shares in L'Oreal .OREP.PA are down 4.7 percent, the biggest losers in France's main CAC-40 index .FCHI, after the French cosmetics group reported fourth-quarter sales below forecasts.
“Despite weaker growth than expected in the fourth quarter, cost control is better than expected,” a trader says, adding that the group’s 2009 operating profit was of “quality”.
“That report could lead to profit-taking on the opening,” he adds.
Shares in L'Oreal have lost 4.6 percent since Jan. 1, underperforming the wider DJ STOXX European personal & household goods index .SXQP, which is up 2.6 percent since the beginning of the year.
“Traditionally its premium to the sector has been justified by its faster growth, but this no longer appears to be the case,” RBS analysts say in a note, adding the stock looked expensive.
“L’Oreal’s shares have performed well in recent months and these results seem a little disappointing to us.”
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