US sales smudge L'Oreal results

Actress Aishwarya Rai is among L'Oreal's "spokesmodels"

Cosmetics firm L'Oreal has blamed tough trading in the US for lower-than-expected sales in the first three months of 2008.

The firm behind Biotherm skin cream and Lancome lipsticks saw sales grow 5.1% from a year ago to 4.4bn euros ($6.9bn; £3.5bn) in the period.

One Paris analyst described the US results as "particularly disappointing"

Separately, French luxury goods firm LVMH saw a 12% growth in first quarter sales and was upbeat for 2008 overall.

Handbags-to-cognac maker LVMH saw sales of 4bn euros ($6.3bn; $3.2) in the three months to the end of March.

"Thanks to the strength and creativity of its brands and its expansion into new markets, LVMH will continue its growth in 2008 despite the challenging monetary environment and an uncertain economic climate at the beginning of this year," the firm said.

'Difficult' period

L'Oreal's like-for-like sales in North America slipped by 3.9%, but they rose 25.9% in eastern Europe and grew by 2.3% in western Europe.

"In North America... we had been anticipating a lacklustre first quarter," said chief executive Jean-Paul Agon.

But fewer customers in department stores had made the period "more difficult", he added.

The group said it expected business to pick up, and said that it was aiming for annual sales to rise by between 6% and 8%.