L'Oreal first quarter sales just ahead of forecasts

PARIS - L'Oreal reported slightly higher than expected first-quarter sales, driven by solid demand for its mass market and luxury products in most regions outside Europe.

The world's biggest cosmetics group said on Thursday trading in Western Europe for luxury products remained lacklustre and trends remained negative for its professional hair products in southern Europe.

But demand for its luxury products such as Armani and Lancome perfumes remained solid in North America, China and the Gulf states and trading at its mass market products division enjoyed "new dynamism" in Brazil and Russia.

The maker of Garnier shampoo and Yves Saint Laurent perfume generated revenue of 5.93 billion euros ($7.76 billion) in the three months to March 31, up 5.5 percent on a like-for-like basis, above analysts' expectations of 5.2 percent sales growth.

L'Oreal's luxury division reported like-for-like sales up 7.2 percent, while analysts expected 5.2 percent.

Its professional products suffered flat growth during the period and dropped 0.4 percent on a reported basis while analysts expected growth of nearly 3 percent.

Sales generated by the group's mass market consumer product division, its biggest in terms of revenue, rose 6.5 percent on a like-for-like basis, beating expectations of 5.7 percent.

For 2013, L'Oreal reiterated its target to outperform the market and increase both sales and profits.